Texas § IN.1601.060 - ACCOUNTING BY CARRIER PROVIDING PURCHASED COVERAGE

§ IN.1601.060. ACCOUNTING BY CARRIER PROVIDING PURCHASED COVERAGE

ACCOUNTING BY CARRIER PROVIDING PURCHASED COVERAGE. (a) A carrier providing coverage purchased under this chapter to a system shall provide an accounting for each line of coverage to the system not later than the 120th day after the end of each plan year. (b) The accounting must be in a form acceptable to the system. (c) The accounting for each line of coverage must state: (1) the cumulative amount of contributions remitted to the carrier under the coverage; (2) the total of all mortality and other claims, charges, losses, costs, contingency reserve for pending and unreported claims, and expenses incurred; and (3) the amounts of the allowance for a reasonable profit, contingency reserve, and all other administrative charges. (d) Information provided under Subsection (c) must be provided: (1) for the period from the coverage's date of issue to the end of the plan year; and (2) for the plan year covered by the report. Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1, 2003.