As Amended
SEC. 25-15-259. Contracts of insurance; reinsurance agreements; issuance of certificates to employees; extension of contracts.
The department is hereby authorized to execute a contract or contracts to provide the benefits under the plan. Such contract or contracts may be executed with one or more corporations or associations licensed to transact accident and health insurance business in this state, provided, however, that no such contract shall be executed with any corporation, association, or company domiciled in any other state except that such corporation, association, or company shall meet the conditions and terms for a like contract established by the state of the domicile of such corporation, association, or company for a Mississippi corporation, association, or company. No corporation, association, or company with less than five (5) years' experience in the health field may bid. All of the benefits to be provided under the plan may be included in one or more similar contracts, or the benefits may be classified into different types with each type included under one or more similar contracts issued by the same or different companies.
The department shall supply the statistical information upon which a quotation is to be calculated, upon request, to all carriers licensed in the state. Bids may be accepted at the discretion of the department, and the department shall have the right to adjust rates on an annual basis if the department shall deem such adjustment necessary. The plan shall be on retention accounting basis. Any additional written information the carrier wishes to submit, supporting the proposed benefits and premium rate, may accompany the proposal. Within thirty (30) days after receiving the proposals, the department shall determine whether to contract with the carrier which has been determined to have submitted the lowest and best bid, or to reject all such bids and receive new proposals.
Said department shall authorize any corporation licensed to transact accident and health insurance business in this state issuing any such contract to reinsure portions of such contract with any other such corporation which elected to be a reinsurer and is legally competent to enter into a reinsurance agreement. The department may designate one or more of such corporations as the administering corporation or corporations. Each employee who is covered under any such contract or contracts shall receive a certificate setting forth the benefits to which the employee is entitled thereunder, to whom such benefits shall be payable, to whom claims should be submitted, and summarizing the provisions of the contract principally affecting the employee. Such certificate shall be in lieu of the certificate which the corporation or corporations issuing such contract or contracts would otherwise issue.
The initial contract with the administering corporation may not exceed a three-year period from and after the date of passage of this article [Laws, 1991, ch 558, eff April 12, 1991], and any premium rate increases during the initial contract period shall not become effective unless approved by the Department of Finance and Administration. Thereafter, the department may enter into a contractual agreement with an underwriter only on an annual basis, or extend the original agreement on an annual basis for no more than three (3) additional years.
SOURCES: Laws, 1991, ch. 558, Sec. 5, eff from and after passage (approved April 12, 1991).