Proposed Revision to 804.1 - Insurance; Self-Insured Group Insurance Plan

 

Board policy:

 

            The Board of Regents hereby authorizes the Commissioner of Higher Education and the respective administrations of the six campuses to establish a self-insured (Administrative Services only) group insurance plan.  The plan will be administered by the Commissioner of Higher Education consistent with Regent policies regarding with the assistance of recommendations from an inter-unit advisory committees committee.  The plan will be administered as an enterprise fund in the state fund structure contingent upon the group plan reserves being allowed to retain interest earnings.  If the group plan loses its ability to retain interest under the enterprise fund the accounting for the plan shall be returned to Montana Tech's Auxiliary Enterprise fund.

 

            All costs associated with the administration of the plan shall be paid from insurance premiums collected and interest earned on reserve balances.  All other interest earned plus premium tax savings shall be credited to the plan reserves.  Reserve balances shall be retained and carried over from year to year.

 

            The Commissioner of Higher Education shall be authorized up to 3.5 full-time equivalent employees to provide administration of the plan.  In no case shall administrative costs exceed the amount of premium tax savings that would be incurred under a conventional group plan plus any interest earned on reserves.  It is the intent that the plan be more cost efficient than conventional insurance.

 

  

History

 

                Item 43-901-R0684, Authorization to Establish a Partially Self-Insured Group Insurance Plan for Montana University System Employees Including All Authorized Affiliated Group Employees; Commissioner of Higher Education, June 12, 1984.  (Rescinded); Item 51-901-R0686, Authorization to Establish a Partially Self-Insured Group Insurance Plan for Montana University System Employees including all Authorized Affiliated Group Employees; Commissioner of Higher Education (Revised), June 20, 1986 and April 26, 1990.

 


 

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