1. A. A small employer carrier may apply to become a risk-assuming carrier by filing an application with the Insurance Commissioner in a form and manner prescribed by the Commissioner.

2. B. The Commissioner shall consider the following factors in evaluating an application filed under subsection A of this section:

   1. 1. The carrier's financial condition;
   2. 2. The carrier's history of rating and underwriting small employer groups;
   3. 3. The carrier's commitment to market fairly to all small employers in the state or its established geographic service area, as applicable; and
   4. 4. The carrier's experience with managing the risk of small employer groups.
3. C. The Commissioner shall provide public notice of an application by a small employer carrier to be a risk-assuming carrier and shall provide at least a sixty-day period for public comment prior to making a decision on the application. If the application is not acted upon within ninety (90) days after the receipt of the application by the Commissioner, the carrier may request a hearing.

4. D. The Commissioner may rescind the approval granted to a risk-assuming carrier under this section if the Commissioner finds that:

   1. 1. The carrier's financial condition will no longer support the assumption of risk from issuing coverage to small employers in compliance with Section 5 of this act without the protection afforded by the program;
   2. 2. The carrier has failed to market fairly to all small employers in this state or its established geographic service area, as applicable; or
   3. 3. The carrier has failed to provide coverage to eligible small employers as required in Section 5 of this act.
5. E. A small employer carrier electing to be a risk-assuming carrier shall not be subject to the provisions of Section 8 of this act.

Laws 1994, HB 2256, c. 211, § 7, emerg. eff. July 1, 1994.