Incurred claim basis

Sec. 10. (a) A self-insurance program must be written on an incurred claims basis. (b) The governing body must fund a self-insurance program as described in section 4(2) of this chapter to include coverage for all eligible incurred claims. (c) Subject to this chapter and notwithstanding any other law: (1) contributions made on behalf of individuals covered under the self-insurance program, including employee and employer contributions; and (2) transfers or allocations of funds by a governing body; for coverage for health care services under a self-insurance program must be directly deposited into the fund and may not be transferred to other accounts or expended for any other purpose. [Pre-2006 Recodification Citation: 21-2-19-5.] As added by P.L.2-2006, SEC.163.