1. A. If assessments authorized in Section 8 of this act in each of two (2) consecutive calendar years exceed five percent (5%) of total premiums earned in the previous calendar year from health benefit plans delivered or issued for delivery to small employers in this state by reinsuring carriers, the board shall be authorized to additionally assess all health insurers doing business in this state.

   1. 1. For purposes of this section, "health insurer" includes all carriers providing health benefit plans, including excess or stoploss health insurance, to citizens of this state.
   2. 2. Each health insurer's assessment shall be determined by multiplying the total assessment of all health insurers as determined in subsection B of this section by a fraction, the numerator of which equals the number of individuals in this state covered under health insurance policies (including by way of excess or stoploss coverage) by each health insurer, and the denominator of which equals the total number of all individuals in this state covered under health insurance policies (including by way of excess or stoploss coverage) by all health insurers, all determined as of the end of the prior calendar year.
   3. 3. The board shall make reasonable efforts designed to ensure that each insured individual is counted only once with respect to any assessment. For that purpose, the board shall require each health insurer that obtains excess or stoploss insurance to include in its count of insured individuals all individuals whose coverage is reinsured (including by way of excess or stoploss coverage) in whole or part. The board shall allow a health insurer who is an excess or stoploss insurer to exclude from its number of insured individuals those who have been counted by the primary insurer or by the primary reinsurer or primary excess or stoploss insurer for the purpose of determining its assessment under this subsection.
   4. 4. Each health insurer's assessment shall be determined by the board based on annual statements and other reports deemed to be necessary by the board and filed by the health insurer with the board. The board may use any reasonable method of estimating the number of insureds of a health insurer if the specific number is unknown. With respect to health insurers that are reinsurers or excess or stoploss insurers, the board may use any reasonable method of estimating the number of persons insured by each reinsurer or excess or stoploss insurer.
   5. 5. A health insurer may petition the Commissioner for an abatement or deferment of all or part of an assessment imposed by the board. The Commissioner may abate or defer, in whole or in part, the assessment if, in the opinion of the Commissioner, payment of the assessment would endanger the ability of the health insurer to fulfill its contractual obligations. In the event an assessment against a health insurer is abated or deferred in whole or in part, the amount by which the assessment is abated or deferred may be assessed against the other health insurers in a manner consistent with the basis for assessments set forth in this section. The health insurer receiving such abatement or deferment shall remain liable to the program for the deficiency for four (4) years.
2. B. The amount of additional financing to be provided to the program shall be equal to the amount by which total assessments in the preceding two (2) calendar years exceed five percent (5%) of total premiums earned during that period from small employers from health benefit plans delivered or issued for delivery in this state by reinsuring carriers. If the program has received additional financing in either of the two (2) previous calendar years pursuant to this subsection, the amount of additional financing shall be subtracted from the amount of total assessments for the purpose of the calculation in the previous sentence.
3. C. Additional financing received by the program pursuant to this section shall be distributed to reinsuring carriers in proportion to the assessments paid by such carriers over the previous two (2) calendar years.

Laws 1994, HB 2256, c. 211, § 9, emerg. eff. July 1, 1994.