1. (a) Before March 1 of each year the board shall determine and file with the commissioner an estimate of the assessments needed to fund the losses incurred by the program in the previous calendar year.

2. (b) If the board determines that the assessments needed to fund the losses incurred by the program in the previous calendar year will exceed two percent (2%) of total premiums earned in the previous calendar year from health insurance plans delivered or issued for delivery to small employers by reinsuring carriers, the board shall evaluate the operation of the program and report the board's findings, including any recommendations for changes in the plan of operation adopted under section 8 of this chapter, to the commissioner not more than ninety (90) days after the end of the calendar year in which the losses were incurred. The evaluation must:

   1. (1) include an estimate of future assessments; and

   2. (2) consider the:

      1. (A) administrative costs of the program;
      2. (B) appropriateness of the premiums charged;
      3. (C) level of insurer retention under the program; and
      4. (D) costs of coverage for small employers.

3. (c) If the board fails to file a report with the commissioner under subsection (b) not later than ninety (90) days after the end of the calendar year, the commissioner may:

   1. (1) evaluate the operation of the program; and
   2. (2) implement the amendments to the plan of operation adopted under section 8 of this chapter that the commissioner considers necessary to reduce future losses and assessments.

As added by P.L.193-1996, SEC.1.