TITLE 6 PRIMARY
AND SECONDARY EDUCATION
CHAPTER 50 INSURANCE
PART 5 DETERMINATION OF PREMIUMS FOR EMPLOYEE-BENEFITS,
RISK-RELATED AND DUE PROCESS REIMBURSEMENT COVERAGES
6.50.5.1 ISSUING AGENCY: New Mexico
Public School Insurance Authority.
[6.50.5.1 NMAC - Rp, 6 NMAC50.5.1,
09/01/2014]
[The address of the New
Mexico Public School Insurance Authority is, 410 Old Taos Highway, Santa Fe,
New Mexico 87501.]
6.50.5.2 SCOPE: This part
applies to all school districts, charter schools and other educational
entities, eligible employees, eligible retired employees, eligible dependents,
eligible participating entity governing body members and persons or entities
authorized to participate in the authority's employee benefits, risk-related and
due process reimbursement coverages.
[6.50.5.2 NMAC - Rp, 6 NMAC
50.5.2, 09/01/2014]
6.50.5.3 STATUTORY AUTHORITY: Subsection D
of Section 22-29-7 NMSA 1978 directs the authority to promulgate necessary
rules, regulations and procedures for the implementation of the New Mexico
Public School Insurance Authority Act, Section 22-29-1 et seq. NMSA 1978.
[6.50.5.3 NMAC - Rp, 6 NMAC 50.5.3, 09/01/2014]
6.50.5.4 DURATION: Permanent.
[6.50.5.4 NMAC - Rp, 6 NMAC
50.5.4, 09/01/2014]
6.50.5.5 EFFECTIVE DATE: September 1, 2014 unless a later date is cited at the end of a section.
[6.50.5.5 NMAC - Rp, 6 NMAC
50.5.5, 09/01/2014]
6.50.5.6 OBJECTIVE: The objective
of this part is to establish the policy for
determining premium levels.
[6.50.5.6 NMAC - Rp, 6 NMAC
50.5.6, 09/01/2014]
6.50.5.7 DEFINITIONS: [RESERVED]
6.50.5.8 ESTABLISHMENT OF EMPLOYEE-BENEFIT
AND RISK RELATED PREMIUMS:
A. The authority shall establish
premiums necessary to protect the solvency of the fund considering all
expenses, potential expenses and costs of the authority programs.
B. Whenever possible, the authority
shall obtain loss experience for each line of coverage for each participating
entity.
C. Whenever possible and economically
feasible, the authority shall obtain professional actuarial advice to establish
premium levels.
D. Whenever
possible, the authority shall consider the loss experience of each particular participating entity as a primary factor in establishing
the premiums for that entity. However,
the authority shall also use other factors as necessary to protect the
stability and solvency of the fund.
E. The authority shall also consider an
appropriate premium increase of up to ten percent when presented with a
member’s untimely reporting of losses, in addition to a potential denial of a
claim under the memorandums of coverages.
F. Exposure information, which
includes, but is not limited to, property values, vehicle counts, payroll,
average daily attendance, budgets, new or hazardous exposures, is requested
from each member typically in December of each year. This information is one of the factors used
to allocate premiums among the members.
The deadline for submission of this information to the authorized
representative of the authority is the second Friday in January. The authorized representative shall have
three to four weeks to review the data, ask and answer any questions and verify
the information. The final deadline for
the submission of all additional or amended exposure information by the members
to the authorized representative is the second Friday in February. The board will have the final decision to
approve or reject any late received exposure information. If the exposure information is not received
by the deadlines described above, the board may, at its discretion, impose a
ten percent penalty increase to that member’s prior year’s exposure
information.
G. If,
at any time, the authority becomes aware that a member has under reported
exposure information, an additional premium will be retroactively charged back
to the appropriate policy period.
H. If, at any time, the authority
becomes aware that a member over reports exposure
information, the member will not receive any return of premiums paid. However, if there are extenuating
circumstances, the member can request that the board waive the forfeiture of
the return premium.
[6.50.5.8 NMAC - Rp, 6 NMAC
50.5.8, 09/01/2014; A, 12/10/2024]
6.50.5.9 ESTABLISHMENT OF DUE PROCESS
REIMBURSEMENT PREMIUMS: Due process reimbursement coverage premiums
shall be established in accordance with Section 22-29-12 NMSA 1978 and the
applicable memorandum of coverage.
[6.50.5.9 NMAC - N, 09/01/2014]
6.50.5.10 NONDISCLOSURE
OF PREMIUM CHANGES: Authority staff, actuaries or consultants
shall not discuss or disclose to participating
entities, employees, retirees or the public any premium changes until
authorized to do so by the board.
[6.50.5.10 NMAC - Rp, 6 NMAC
50.5.9, 09/01/2014]
HISTORY of 6.50.5
NMAC:
Pre-NMAC History: The material in this part was
derived from that previously filed with the State Records Center and Archives under:
NMPSIA Rule 86-207,
Employee-Benefits Determination Of Premium Levels, filed 10/31/1986;
NMPSIA Rule 93-8, Employee-Benefits
And Risk-Related Coverages Determination Of Premium Levels, filed 3/22/1993.
History of Repealed Material:
6 NMAC 50.5, Employee-Benefits
And Risk-Related Coverages Determination Of Premium Levels, filed 10/1/1997-Repealed
effective 09/01/2014.