Administration & Information, Dept. of

Local Government Self-Insurance Program

Chapter 7: Cancellation Policy

Effective Date: 07/20/1989 to Current

Rule Type: Current Rules & Regulations

Reference Number: 006.0003.7.07201989

CHAPTER VII

CANCELLATION POLICY

Section 1. Voluntary Cancellations.

(a) Cancellation by a participant shall normally be allowed at the end of the coverage period set forth in the certificate of participation. The Board may allow midterm cancellations. Such cancellations shall result in a refund on pro-rata basis minus a surcharge equal to 10% of annual premium.

(b) The Entity shall give written notification of the intent to cancel thirty (30) days prior to the end of the coverage period.

Section 2. Denial or Termination of Participation. The Risk Manager, with the approval of a 2/3 majority of the Board may deny a local government participation in or may terminate a participant from the program, for the following reasons:

1. (a) failure to pay the assessments required under the act and established pursuant to these rules;
2. (b) failure to adopt or implement the risk management practices adopted for the program.