Common use of Reserve Insurance Fund Clause in Contracts

Reserve Insurance Fund. The Reserve Insurance Fund (Reserve) will be used for rate control and/or benefit enhancements in the insurance plan. Any benefit changes will be addressed as part of the collective bargaining process. Reserve Formula The Reserve should be seventeen (17%) percent of projected annual claims with a built in margin of ±25%. This margin will provide a safeguard against the reserve becoming too small or large depending on actual claims experience, shifts in enrollment, and inflationary trends.

Reserve Insurance Fund. The Reserve Insurance Fund (Reserve) will be used for rate control and/or benefit enhancements in the insurance plan. Any benefit changes will be addressed as part of the collective bargaining process. Reserve Formula The Reserve should be seventeen (17%) percent % of projected annual claims with a built in margin of ±25%. This margin will provide a safeguard against the reserve becoming too small or large depending on actual claims experience, shifts in enrollment, and inflationary trends.