Common use of Annual Premium Clause in Contracts

Annual Premium. Except as provided in (3) below, all post-development costs of an insurance program shall be funded by annual premiums charged to the members participating in the program each policy year, and by interest earnings on the funds so accumulated. Such premiums shall be determined by the Board of Directors upon the basis of a cost allocation plan and rating formula developed by the Authority with the assistance of a casualty actuary, risk management consultant, or other qualified person. The premium for each participating member shall include that participant’s share of expected program losses including a margin for contingencies as determined by the Board, program reinsurance costs, and program administrative costs for the year, plus that participant’s share of Authority general expense allocated to the program by the Board.

Annual Premium. Except as provided in (3) below, all post-development costs of an insurance program shall be funded by annual premiums charged to the members member organizations participating in the program each policy year, and by interest earnings on the funds so accumulated. Such premiums shall be determined by the Board of Directors upon the basis of a cost allocation proration plan and rating formula developed by the Authority with the assistance of a casualty actuary, risk management consultant, or other qualified personperson and described in the Bylaws. The premium for each participating member organization shall include that participant’s organization's share of expected program losses including a margin for contingencies as determined by the Boardclaims costs, program reinsurance costs, and program administrative costs for the year, plus that participant’s member organization's share of Authority general expense allocated charged to the program by the Board.