Annual Premium. Except as provided in Section D below, costs of the program shall be funded by annual premiums charged to the Member Districts participating in the program each program year and by interest earnings on funds accumulated. Such premiums shall be determined by the Board of Directors upon the basis of a cost allocation plan and experience rating formula developed by the System with the assistance of a casualty actuary, risk management consultant, or other qualified person. The premium for each Member District shall include that Member District’s share of expected program losses, excess insurance or reinsurance costs, administrative costs and program development costs, if applicable. Premiums shall be billed by the System at the beginning of each quarter and shall be payable within thirty (30) days of the billing date(s). At the end of each policy year, Member District payroll shall be audited by the System. Any deficiency in the premium shall be paid by the Member District within thirty (30) days from the date of billing. Any premium refund due the Member District shall be made within thirty (30) days.
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