§ 38-652 — Experience rating dividends and unused claim reserves; deposit; trust account

Arizona § 38-652

• Jurisdiction: Arizona
• Title 38: Arizona Revised Statutes
• Ch. 4: COMPENSATION AND INSURANCE
• Art. 4: Health and Accident Insurance

Text

A. Monies that are to be paid by any insurance carrier, other than a carrier that is being discontinued, as experience rating dividends or unused claim reserves resulting from health and accident coverage provided pursuant to this article shall be paid to the department of administration. All such monies received by the department from such carriers shall be deposited, pursuant to sections 35-146 and 35-147, by the department within five days after receipt in a trust account to be administered by the department of administration. All such monies that are to be paid by an insurance carrier that will no longer continue as a carrier providing coverage pursuant to this article shall be paid to the department of administration. The department shall deposit, pursuant to sections 35-146 and 35-147, all such monies received from such discontinued carriers in the state general fund.

B. On notice from the department of administration, the state treasurer shall invest and divest monies in the fund as provided by section 35-313, and monies earned from investment shall be credited to the fund.

C. Monies deposited in the trust account, together with all monies derived from investment of such monies, shall be used by the department of administration as provided in this subsection for the benefit of participating officers and employees who select a health and accident insurance benefit plan pursuant to this article that produces cash experience dividends and requires payroll deductions. Such monies shall be used as determined by the department of administration only for either or both of the following purposes:

1. To apply against premiums to be paid.

2. To purchase additional health and accident benefits for officers and employees and for the dependents of such officers and employees participating in the plan.

D. Subsection C of this section does not require that all monies in the trust fund be used within any one or more fiscal years. Any person who is no longer an employee of the state or an employee who is no longer a participant in a plan of the insurance carrier from which such monies were derived shall forfeit the person's right to any such premium reduction or plan improvement.

E. Monies deposited in or credited to the trust account shall be exempt from the provisions of section 35-190 relating to the reversion of monies to the state general fund.

F. No monies may be withdrawn from the trust account except on the warrant of the department of administration.