What are the policyholders stabilization reserve funds?
Chapter 2203, Subchapter G (formerly Section 4A, Article 21.49-3), Insurance Code, as amended, created two Policyholders Stabilization Reserve Funds; one for physicians and other non-nursing home providers and another for nursing homes. Subchapter G provides that the funds be administered as provided in the Act and the Association’s Plan of Operation. The Policyholders Stabilization Reserve Fund Charge is collected from each policyholder in addition to the annual premium and may be used only as the first line of recoupment when a deficit from operations is sustained. The Policyholders Stabilization Reserve Fund Charge is determined annually by advisory directors as designated by each eligible category of health care provider and is stated as a percentage of the annual premium. The Policyholders Stabilization Reserve Fund Charge does not constitute a part of the premium and is not subject to premium taxation, servicing fees, acquisition costs, commissions and shall not be considered pre
