1. (a) Each small employer carrier shall file with the commissioner, no later than with the first filing of a small employer health benefit plan, notification of whether the carrier elects to operate as a risk-assuming or reinsured carrier. A small employer carrier's operation as a risk-assuming carrier is subject to approval by the commissioner, and each small employer carrier electing to operate as a risk-assuming carrier shall file an application with the commissioner contemporaneously with its election to operate as a risk-assuming carrier. A small employer carrier shall use Form Number 1212 RISK for these purposes.
2. (b) A small employer carrier seeking to change its status as a risk-assuming or reinsured carrier shall file an application with the commissioner. The required filing shall include a completed certification form Form Number 1212 RISK and shall provide information demonstrating good cause why the carrier should be allowed to change its status.

3. (c) A small employer carrier's election is effective until the fifth anniversary of the election, and a small employer carrier seeking to maintain its status after that date:

   1. (1) as a reinsured carrier must file with the commissioner, at least 90 days prior to the fifth anniversary of its election, Form Number 1212 RISK to renew that election;
   2. (2) as a risk-assuming carrier must file with the commissioner, at least 90 days prior to the fifth anniversary of its election, Form Number 1212 RISK to reapply for the commissioner's approval of that election.

Source Note:The provisions of this §26.18 adopted to be effective April 9, 1996, 21 TexReg 2648; amended March 5, 1998, 23 TexReg 2297; amended to be effective April 6, 2005, 30 TexReg 1931.