40-2121.Same; member assessments; credit for lossassessments againstpremiumand privilege tax liability.(a) Following the close of each fiscal year, the administeringcarrier shall determine the net premiums, the plan expenses of administrationand the incurred losses for the year. Any net loss of the plan determinedafter taking into account amounts transferred pursuant to subsection (h) ofK.S.A. 79-4804, and amendments thereto, investment income and other appropriategains and losses shall be assessed by the board to all members ofthe association in proportion to their respective shares of total healthinsurance premiums received in this state during the calendar year coincidingwith or ending during the fiscal year of the association or any other equitablebasis as may be provided in the plan of operation. For health maintenanceorganization members and insurance arrangements, the proportionate share oflosses shall be determined through application of an equitable formula basedupon claims paid on the value of services provided. In sharing losses, theboard may abate or defer in whole or in part the assessment of a member if, inthe opinion of the board, payment of the assessment would endanger the abilityof the member to fulfill its contractual obligations. Health insurancebenefits paid by an insurance arrangement that are less than an amountdetermined by the board to justify the cost of collection shall not beconsidered for purposes of determining assessments. Net gains, if any, shallbe held at interest to offset future losses or allocated to reduce futurepremiums.In addition to any annual assessment at the close of the fiscal year of theplan authorized by this subsection, the board may provide for interimassessments of the members of the association, subject to the approval of thecommissioner, as may be necessary to assure the financial capability of theassociation in meeting the incurred or estimated claims expenses of the planand the operating and administrative expenses of the plan.
(b) In addition to any assessment authorized by subsection (a), the boardmay assess the members of the association for any initialcosts associated with developing and implementing the plan to the extent suchcosts exceed the funds transferred to the uninsurable health insurance planfund pursuant to K.S.A. 40-2125 and amendments thereto. Such assessment shall be allocated among the members of the association in themanner prescribed by subsection (a) of this section or any other equitableformula established by the board. Assessments under this subsection shall notbe subject to the credit against premium tax under subsection (c).
(c) For taxable years commencingafter December 31, 1995, and prior to January 1, 1998, 80% of anyassessment made against amember of the association pursuant to subsection (a) of this section may beclaimed by such member as a credit against such member's premium or privilegetax liability imposed by K.S.A. 12-2624, 40-252 or 40-3213and amendments thereto, for the taxable year in whichsuch assessment is paid.For the tax year commencing after December 31, 1997, 70% of any assessmentmade against a member of the association pursuant to subsection (a) of thissection may be claimed by such member as a credit against such member's premiumtax liability imposed by K.S.A. 12-2624, 40-252 or 40-3213 and amendmentsthereto, for the taxable year in which such assessment is paid.
For the tax year commencing after December 31, 1998, 65% of any assessmentmade against a member of the association pursuant to subsection (a) of thissection may be claimed by such member as a credit against such member's premiumtax liability imposed by K.S.A. 12-2624, 40-252 or 40-3213 and amendmentsthereto, for the taxable year in which such assessment is paid.
For the tax year commencing after December 31, 1999, 60% of any assessmentmade against a member of the association pursuant to subsection (a) of thissection may be claimed by such member as a credit against such member's premiumtax liability imposed by K.S.A. 12-2624, 40-252 or 40-3213 and amendmentsthereto, for the taxable year in which such assessment is paid.
(d) In addition to the assessments otherwise authorized herein, theboard shall assess all issuers of medicare supplement policies covering personswithin this state to the extent necessary to assure that the excess losses, ifany, are distributed among such issuers of medicare supplement policies in aratio equal to the percentage market share in Kansas of each such issuer formedicare supplement policies covering persons eligible for medicare by reasonof age. The association shall also assess to such issuers of medicaresupplement policies the costs the association incurs in operating thereinsurance program, making assessments, and collecting and distributingmoneys, which shall be assessed pro rata to such issuers based on the marketshare of such issuers of medicare supplement policies covering persons eligiblefor medicare by reason of age. Such assessment shall occur not later than July1 of each year, based on such excess losses and such market shares for theimmediately preceding calendar year. Issuers of medicare supplement policiesshall remit the amount so assessed to the association within the time framesestablished by the board for payment of assessment otherwise authorized herein.The association shall pay to any issuer of medicare supplement policiesentitled thereto such amount as is necessary to result in the equalizationamong all issuers of medicare supplement policies in Kansas of excess losses ina proportion equivalent to the percentage market share in Kansas of each issuerof medicare supplement policies covering persons eligible for medicare byreason of age. The amount of such assessments received by an insurer shall notbe accounted for as premium income nor shall such amounts be subject to premiumtax. The amount of such assessments shall not be available for use in premiumtax credits provided for under subsection (c) of K.S.A. 40-2122, andamendments thereto. The association shall have the ability to enforceassessmentsthrough its board.
40-2121.Same; member assessments; credit for lossassessments againstpremiumand privilege tax liability.(a) Following the close of each fiscal year, the administeringcarrier shall determine the net premiums, the plan expenses of administrationand the incurred losses for the year. Any net loss of the plan determinedafter taking into account amounts transferred pursuant to subsection (h) ofK.S.A. 79-4804, and amendments thereto, investment income and other appropriategains and losses shall be assessed by the board to all members ofthe association in proportion to their respective shares of total healthinsurance premiums received in this state during the calendar year coincidingwith or ending during the fiscal year of the association or any other equitablebasis as may be provided in the plan of operation. For health maintenanceorganization members and insurance arrangements, the proportionate share oflosses shall be determined through application of an equitable formula basedupon claims paid on the value of services provided. In sharing losses, theboard may abate or defer in whole or in part the assessment of a member if, inthe opinion of the board, payment of the assessment would endanger the abilityof the member to fulfill its contractual obligations. Health insurancebenefits paid by an insurance arrangement that are less than an amountdetermined by the board to justify the cost of collection shall not beconsidered for purposes of determining assessments. Net gains, if any, shallbe held at interest to offset future losses or allocated to reduce futurepremiums.In addition to any annual assessment at the close of the fiscal year of theplan authorized by this subsection, the board may provide for interimassessments of the members of the association, subject to the approval of thecommissioner, as may be necessary to assure the financial capability of theassociation in meeting the incurred or estimated claims expenses of the planand the operating and administrative expenses of the plan.
(b) In addition to any assessment authorized by subsection (a), the boardmay assess the members of the association for any initialcosts associated with developing and implementing the plan to the extent suchcosts exceed the funds transferred to the uninsurable health insurance planfund pursuant to K.S.A. 40-2125 and amendments thereto. Such assessment shall be allocated among the members of the association in themanner prescribed by subsection (a) of this section or any other equitableformula established by the board. Assessments under this subsection shall notbe subject to the credit against premium tax under subsection (c).
(c) For taxable years commencingafter December 31, 1995, and prior to January 1, 1998, 80% of anyassessment made against amember of the association pursuant to subsection (a) of this section may beclaimed by such member as a credit against such member's premium or privilegetax liability imposed by K.S.A. 12-2624, 40-252 or 40-3213and amendments thereto, for the taxable year in whichsuch assessment is paid.For the tax year commencing after December 31, 1997, 70% of any assessmentmade against a member of the association pursuant to subsection (a) of thissection may be claimed by such member as a credit against such member's premiumtax liability imposed by K.S.A. 12-2624, 40-252 or 40-3213 and amendmentsthereto, for the taxable year in which such assessment is paid.
For the tax year commencing after December 31, 1998, 65% of any assessmentmade against a member of the association pursuant to subsection (a) of thissection may be claimed by such member as a credit against such member's premiumtax liability imposed by K.S.A. 12-2624, 40-252 or 40-3213 and amendmentsthereto, for the taxable year in which such assessment is paid.
For the tax year commencing after December 31, 1999, 60% of any assessmentmade against a member of the association pursuant to subsection (a) of thissection may be claimed by such member as a credit against such member's premiumtax liability imposed by K.S.A. 12-2624, 40-252 or 40-3213 and amendmentsthereto, for the taxable year in which such assessment is paid.
(d) In addition to the assessments otherwise authorized herein, theboard shall assess all issuers of medicare supplement policies covering personswithin this state to the extent necessary to assure that the excess losses, ifany, are distributed among such issuers of medicare supplement policies in aratio equal to the percentage market share in Kansas of each such issuer formedicare supplement policies covering persons eligible for medicare by reasonof age. The association shall also assess to such issuers of medicaresupplement policies the costs the association incurs in operating thereinsurance program, making assessments, and collecting and distributingmoneys, which shall be assessed pro rata to such issuers based on the marketshare of such issuers of medicare supplement policies covering persons eligiblefor medicare by reason of age. Such assessment shall occur not later than July1 of each year, based on such excess losses and such market shares for theimmediately preceding calendar year. Issuers of medicare supplement policiesshall remit the amount so assessed to the association within the time framesestablished by the board for payment of assessment otherwise authorized herein.The association shall pay to any issuer of medicare supplement policiesentitled thereto such amount as is necessary to result in the equalizationamong all issuers of medicare supplement policies in Kansas of excess losses ina proportion equivalent to the percentage market share in Kansas of each issuerof medicare supplement policies covering persons eligible for medicare byreason of age. The amount of such assessments received by an insurer shall notbe accounted for as premium income nor shall such amounts be subject to premiumtax. The amount of such assessments shall not be available for use in premiumtax credits provided for under subsection (c) of K.S.A. 40-2122, andamendments thereto. The association shall have the ability to enforceassessmentsthrough its board.
40-2121.Same; member assessments; credit for lossassessments againstpremiumand privilege tax liability.(a) Following the close of each fiscal year, the administeringcarrier shall determine the net premiums, the plan expenses of administrationand the incurred losses for the year. Any net loss of the plan determinedafter taking into account amounts transferred pursuant to subsection (h) ofK.S.A. 79-4804, and amendments thereto, investment income and other appropriategains and losses shall be assessed by the board to all members ofthe association in proportion to their respective shares of total healthinsurance premiums received in this state during the calendar year coincidingwith or ending during the fiscal year of the association or any other equitablebasis as may be provided in the plan of operation. For health maintenanceorganization members and insurance arrangements, the proportionate share oflosses shall be determined through application of an equitable formula basedupon claims paid on the value of services provided. In sharing losses, theboard may abate or defer in whole or in part the assessment of a member if, inthe opinion of the board, payment of the assessment would endanger the abilityof the member to fulfill its contractual obligations. Health insurancebenefits paid by an insurance arrangement that are less than an amountdetermined by the board to justify the cost of collection shall not beconsidered for purposes of determining assessments. Net gains, if any, shallbe held at interest to offset future losses or allocated to reduce futurepremiums.In addition to any annual assessment at the close of the fiscal year of theplan authorized by this subsection, the board may provide for interimassessments of the members of the association, subject to the approval of thecommissioner, as may be necessary to assure the financial capability of theassociation in meeting the incurred or estimated claims expenses of the planand the operating and administrative expenses of the plan.
(b) In addition to any assessment authorized by subsection (a), the boardmay assess the members of the association for any initialcosts associated with developing and implementing the plan to the extent suchcosts exceed the funds transferred to the uninsurable health insurance planfund pursuant to K.S.A. 40-2125 and amendments thereto. Such assessment shall be allocated among the members of the association in themanner prescribed by subsection (a) of this section or any other equitableformula established by the board. Assessments under this subsection shall notbe subject to the credit against premium tax under subsection (c).
(c) For taxable years commencingafter December 31, 1995, and prior to January 1, 1998, 80% of anyassessment made against amember of the association pursuant to subsection (a) of this section may beclaimed by such member as a credit against such member's premium or privilegetax liability imposed by K.S.A. 12-2624, 40-252 or 40-3213and amendments thereto, for the taxable year in whichsuch assessment is paid.For the tax year commencing after December 31, 1997, 70% of any assessmentmade against a member of the association pursuant to subsection (a) of thissection may be claimed by such member as a credit against such member's premiumtax liability imposed by K.S.A. 12-2624, 40-252 or 40-3213 and amendmentsthereto, for the taxable year in which such assessment is paid.
For the tax year commencing after December 31, 1998, 65% of any assessmentmade against a member of the association pursuant to subsection (a) of thissection may be claimed by such member as a credit against such member's premiumtax liability imposed by K.S.A. 12-2624, 40-252 or 40-3213 and amendmentsthereto, for the taxable year in which such assessment is paid.
For the tax year commencing after December 31, 1999, 60% of any assessmentmade against a member of the association pursuant to subsection (a) of thissection may be claimed by such member as a credit against such member's premiumtax liability imposed by K.S.A. 12-2624, 40-252 or 40-3213 and amendmentsthereto, for the taxable year in which such assessment is paid.
(d) In addition to the assessments otherwise authorized herein, theboard shall assess all issuers of medicare supplement policies covering personswithin this state to the extent necessary to assure that the excess losses, ifany, are distributed among such issuers of medicare supplement policies in aratio equal to the percentage market share in Kansas of each such issuer formedicare supplement policies covering persons eligible for medicare by reasonof age. The association shall also assess to such issuers of medicaresupplement policies the costs the association incurs in operating thereinsurance program, making assessments, and collecting and distributingmoneys, which shall be assessed pro rata to such issuers based on the marketshare of such issuers of medicare supplement policies covering persons eligiblefor medicare by reason of age. Such assessment shall occur not later than July1 of each year, based on such excess losses and such market shares for theimmediately preceding calendar year. Issuers of medicare supplement policiesshall remit the amount so assessed to the association within the time framesestablished by the board for payment of assessment otherwise authorized herein.The association shall pay to any issuer of medicare supplement policiesentitled thereto such amount as is necessary to result in the equalizationamong all issuers of medicare supplement policies in Kansas of excess losses ina proportion equivalent to the percentage market share in Kansas of each issuerof medicare supplement policies covering persons eligible for medicare byreason of age. The amount of such assessments received by an insurer shall notbe accounted for as premium income nor shall such amounts be subject to premiumtax. The amount of such assessments shall not be available for use in premiumtax credits provided for under subsection (c) of K.S.A. 40-2122, andamendments thereto. The association shall have the ability to enforceassessmentsthrough its board.
