Sec. 1601.061. SPECIAL RESERVE. (a) A carrier issuing a group coverage plan under this chapter may hold as a special reserve for a system an amount that equals the amount by which the total amount described by Section 1601.060(c)(1) exceeds the sum of the corresponding amounts described by Sections 1601.060(c)(2) and (3).
(b) The system may use money in the special reserve at its discretion, including for:
(1) providing additional coverage for participating employees or retired employees;
(2) offsetting necessary rate increases; or
(3) reducing contributions to the coverage by participating employees or retired employees.
(c) A special reserve held by a carrier for a system earns interest at a rate determined each plan year by the carrier and approved by the system as consistent with the rate generally used by the carrier for similar funds held under other group coverages.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1, 2003.
Structure Texas Statutes
Title 8 - Health Insurance and Other Health Coverages
Subtitle H - Health Benefits and Other Coverages for Governmental Employees
Subchapter B. Administration and Implementation
Section 1601.051. Administration and Implementation
Section 1601.052. Rulemaking Authority
Section 1601.053. General Duties Relating to Coverage
Section 1601.054. Competitive Bidding Required
Section 1601.055. Identification of Administrative Costs in Bids
Section 1601.056. Information on Bidders and Bidding Contracts
Section 1601.057. Selection of Bids
Section 1601.058. Selection of Health Maintenance Organizations
Section 1601.059. Certificate of Coverage
Section 1601.060. Accounting by Carrier Providing Purchased Coverage
Section 1601.061. Special Reserve
Section 1601.062. Reports and Records by Administering Carrier