1.The rates, rating plans, rating classifications, and policy forms and endorsements
applicable to insurance written by the association and the statistical and experience data
relating thereto shall be subject to sections 519A.2 through 519A.4, this section, and sections
519A.6 through 519A.13 and to the provisions of the general insurance code which are not
inconsistent with the purposes and provisions of this chapter.
2.All policies issued by the association shall provide for a continuous period of coverage
beginning with their respective effective dates. All policies shall terminate at 12:01 a.m. two
years from the date of finding of an emergency by the commissioner, or earlier in accordance
with sections 519A.2 through 519A.4, this section, and sections 519A.6 through 519A.13; or
bec
Free access — add to your briefcase to read the full text and ask questions with AI
1. The rates, rating plans, rating classifications, and policy forms and endorsements
applicable to insurance written by the association and the statistical and experience data
relating thereto shall be subject to sections 519A.2 through 519A.4, this section, and sections
519A.6 through 519A.13 and to the provisions of the general insurance code which are not
inconsistent with the purposes and provisions of this chapter.
2. All policies issued by the association shall provide for a continuous period of coverage
beginning with their respective effective dates. All policies shall terminate at 12:01 a.m. two
years from the date of finding of an emergency by the commissioner, or earlier in accordance
with sections 519A.2 through 519A.4, this section, and sections 519A.6 through 519A.13; or
becauseoffailureofthepolicyholdertopayanypremiumorstabilizationreservefundcharge
or portion of either when due. All policies shall be issued subject to the group retrospective
rating plan and the stabilization reserve fund authorized by this chapter. No policy form shall
be used by the association unless it has been filed with and approved by the commissioner.
3. The commissioner shall specify whether policy forms and the rate structure shall be
on a “claims-made” or “occurrence” basis and coverage shall be provided by the association
only on the basis specified by the commissioner. The commissioner shall specify the
“claims-made” basis only if the contract makes provision for residual “occurrence” coverage
upon the retirement, death, disability or removal from this state of the insured. Provision
may be made for a premium charge allocable to any such residual “occurrence” coverage
and such premium charges for such residual coverage shall be segregated and separately
maintained for such purpose which may include the reinsurance of all or a part of that
portion of the risk.
4. The rates, rating plans, rating rules, and rating classifications applicable to the
insurance written by the association shall be on an actuarially sound basis, giving due
consideration to the group retrospective rating plan and the stabilization reserve fund, and
shall be calculated to be self-supporting.
5. All policies issued by the association shall be subject to a nonprofit group retrospective
rating plan to be approved by the commissioner under which the final premium for all
policyholders of the association, as a group, will be equal to the administrative expenses,
loss and loss adjustment expenses and taxes, plus a reasonable allowance for contingencies
and servicing. Policyholders shall be given full credit for all investment income, net of
expenses and a reasonable management fee, on policyholder supplied funds. The standard
premium, before retrospective adjustment, for each policy issued by the association shall
be established for portions of the policy period coinciding with the association’s fiscal year
on the basis of the association’s rates, rating plans, rating rules, and rating classifications
then in effect. The maximum final premium for all policyholders of the association, as a
group, shall be limited as provided in section 519A.6, subsection 5. Since the business of
the association is subject to the nonprofit group retrospective rating plan required by this
subsection, there shall be a presumption that the rates filed and premiums imposed by the
association are not unreasonable or excessive.
6. The association shall certify to the commissioner the estimated amount of any
deficit remaining after the stabilization reserve fund has been exhausted in payment of the
maximum final premium for all policyholders of the association. Within sixty days after that
certification the commissioner shall authorize the members of the association to commence
recoupment of their respective shares of the deficit by deducting their share of the deficit
from past or future premium taxes due the state of Iowa. The association shall amend
§519A.5, MEDICAL MALPRACTICE INSURANCE 4
the amount of its certification of deficit to the commissioner as the values of its incurred
losses become finalized and the members of the association shall amend their recoupment
procedure accordingly.
7. In the event that sufficient funds are not available for the sound financial operation of
the association, all members shall contribute to the financial requirements of the association
in the manner provided for in section 519A.8. Any contribution shall be reimbursed to the
members by recoupment as provided in subsection 6.