38-652

38-652. Experience rating dividends and unused
claim reserves; deposit; trust account; investment of monies;
disposition of trust account funds; audit; report

A. Monies that are to be paid by any insurance carrier, other than a carrier that
is being discontinued, as experience rating dividends or unused claim reserves resulting
from health and accident coverage provided pursuant to this article shall be paid to the
department of administration. All such monies received by the department from such
carriers shall be deposited, pursuant to sections 35-146 and 35-147, by the department
within five days after receipt, in a trust account to be administered by the department
of administration. All such monies that are to be paid by an insurance carrier that will
no longer continue as a carrier providing coverage pursuant to this article shall be paid
to the department of administration. The department shall deposit, pursuant to sections
35-146 and 35-147, all such monies received from such discontinued carriers in the state
general fund.

B. On notice from the department of administration, the state treasurer shall
invest and divest monies in the fund as provided by section 35-313, and monies earned
from investment shall be credited to the fund.

C. Monies deposited in the trust account, together with all monies derived from
investment of such funds, shall be used by the department of administration as provided
in this subsection for the benefit of participating officers and employees who select a
health and accident insurance benefit plan pursuant to this article which produces cash
experience dividends and requires payroll deductions. Such monies shall be used as
determined by the department of administration only for either or both of the following
purposes:

1. To apply against premiums to be paid.

2. To purchase additional health and accident benefits for officers and employees
and for the dependents of such officers and employees participating in the plan.

D. The provisions of subsection C of this section shall not be construed to require
that all monies in the trust fund shall be used within any one or more fiscal years. Any
person who is no longer an employee of the state or an employee who is no longer a
participant in a plan of the insurance carrier from which such monies were derived shall
forfeit his right to any such premium reduction or plan improvement.

E. Monies deposited in or credited to the trust account shall be exempt from the
provisions of section 35-190 relating to the reversion of monies to the state general
fund.

F. No monies may be withdrawn from the trust account except upon the warrant of the
department of administration.

G. The department of administration shall annually report the financial status of
the trust account to officers and employees who have paid premiums under one of the
insurance plans from which monies were received for deposit in the trust account since
the inception of the health and accident coverage program or since submission of the last
such report, whichever is later.