31A-22-702 - Adjustment of premium rate and application of dividends or rate reductions.

31A-22-702. Adjustment of premium rate and application of dividends or ratereductions.
Any group accident and health insurance policy may provide for the adjustment of the rateof premium based upon the experience under the contract. If a policy dividend is declared or areduction in rate is made or continued for the first or any subsequent year of insurance under anypolicy of group accident and health insurance, the excess, if any, of the aggregate dividends orrate reductions under the policy and all other group insurance policies of the policyholder over theaggregate expenditure for insurance under those policies made from funds contributed by thepolicyholder, including expenditures made in connection with the administration of the policies,shall be applied by the policyholder for the sole benefit of insured employees or members unlessthe insured employee or member explicitly elects otherwise.

Amended by Chapter 116, 2001 General Session