2.55.409    EXPENSE CONSTANT

(1) The state fund may assess an expense constant on all policies in effect during a fiscal year. The amount of the charge shall be determined annually by the board for the future fiscal year, and may be in addition to any other charge, premium or loss based premium.

(2) The expense constant is included in the total minimum premium charged if the expense constant plus premium is less than the total minimum premium established by the board for the fiscal year.

(3) The expense constant includes, but is not limited to, expense components for issuing, maintaining and servicing policies, which are common to all policies regardless of premium size.

(4) The state fund may cancel the employer's policy for failure to pay an expense constant.

History: Sec. 39-71-2315 and 39-71-2316, MCA; IMP, Sec. 39-71-2311 and 39-71-2316, MCA; TEMP, NEW, 1995 MAR p. 1792, Eff. 9/15/95; AMD, 2000 MAR p. 1033, Eff. 4/28/00; AMD, 2002 MAR p. 164, Eff. 2/1/02; AMD, 2004 MAR p. 176, Eff. 1/30/04.