ARM 6.6.9102. ANNUAL FINANCIAL REPORTING REQUIREMENT

(1) Beginning the year following the adoption of this rule, on or before September 1 of each year, the trust shall file with the state auditor an annual financial statement on the National Association of Insurance Commissioners’ (NAIC) health blank form, complete with all required schedules, covering the prior fiscal year. The trust shall also file the following integral components of an annual financial statement filing: (a) A confidential risk-based capital calculation, using NAIC’s prescribed risk-based capital form. (b) A statement of actuarial opinion from the trust’s credentialed actuary attesting to the adequacy of the trust’s unpaid claims liability and related reserves at year-end, using generally accepted actuarial principles and a 90% confidence level set forth in 20-3-370(3)(b), MCA, and so states in the opinion. (c) The most recent calculation of minimum reserves calculated in ARM 6.6.9103. Filing of a confidential actuarial opinion summary and reserve report will meet this requirement. (d) A list of the school districts participating in the trust during the prior year and, for each district, the number of employees contracted to participate in and obtain health insurance through the trust. (e) A certification signed by the trust stating under oath that the other criteria set forth in 20-3-366, MCA, were satisfied during the prior year, that the criteria are satisfied as of the date of the certification, and that the trust is not aware of any material changes that will affect its ability to satisfy the criteria going forward. (2) On or before December 1 of each year, the trust shall file with the state auditor audited financial statements certified by an independent certified public accountant. The trust may choose to use either generally accepted accounting principles (GAAP) or statutory accounting principles (SAP) to prepare its financial statements. Once a GAAP or SAP election has been made, any future change in the basis of accounting must be approved by the state auditor. (3) On or before January 1 of each plan year beginning after the second full year of providing health benefits to the members of the trust, the trust shall provide the state auditor with a copy of the report provided to each participating district and employee group as specified in 20-3-367(2)(a), MCA. (4) Beginning July 1, 2036, the trust shall, as part of its annual actuarial analysis, indicate any excess reserves existing in the trust and the total amount the trust has repaid to the state.