17:48E-17.3 Examination of annual regulatory filings; annual audit.
4. a. The commissioner shall, on an annual basis, examine a health service corporation’s annual regulatory filings to determine whether the health service corporation’s risk-based capital ratio is within 550% to 725%. If at any time the commissioner determines that a health service corporation surplus results in a ratio that exceeds this range, the department shall notify the health service corporation and the health service corporation shall, within 30 days of notice from the commissioner, file a report with the commissioner to reduce the surplus to be within the range. The report shall include a plan to benefit subscribers, which may include but not be limited to proposals to lessen potential rate increases in the future. The commissioner shall review the plan to affirm that it meets the requirements of Phamplet Law 2017, Chapter 100 (C. 17:48E-17.3 et al.).
b. The department shall annually audit the financial statements and surplus of the health service corporation to verify risk-based capital. In order to implement the provisions of this section, the department may engage independent actuaries, as necessary, at the expense of the health service corporation.
L.2017, C. 100, S.4.
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