Common use of Annual Premium Clause in Contracts

Annual Premium. The Member shall pay an annual premium, together with any premium surcharges, for the reinsurance coverage provided by the Association at the rate determined by the Board of Directors of the Association (“Board of Directors”) and approved by the Minnesota Commissioner of Labor and Industry (“Commissioner”). Estimated premium shall be calculated in accordance with procedures established in the Operating Rule for Determination of Exposure Base. The estimated exposure base for a Member may be revised after six months of the coverage year if the member verifies that its current annualized six month exposure base is at least fifteen percent higher or lower than its estimated exposure base. When the actual exposure base figures for the billing year become available, the actual premium shall be calculated. A premium adjustment shall be made as provided in Part Five D. of this Agreement. Ref: Minn. Stat. § 79.35(d). Plan, Article VI.D. Operating Rule for Determination of Exposure Base