GVHR » Topics » III. Administrative Expense and Annual Excess Liability Charge

This excerpt taken from the GVHR 10-Q filed Nov 10, 2008.

III.           Administrative Expense and Annual Excess Liability Charge

 

Approximately 15 days before the first date of each month, BCBSF/HOI will submit to the Group an invoice for the amount of estimated administrative expenses (Minimum Premium Charge and Annual Excess Liability Charge) to be paid during the forthcoming month.  Such charges shall be equal to the product of the Minimum Premium Rate and the Annual Excess liability rate, as set forth in Exhibit A hereto, then in effect multiplied by (times) the number of Insured’s as determined by BCBSF/HOI (on the renewal exhibit).   The Group agrees to pay the full amount of the invoice each month by the later of (i) the end of business on the first calendar day of the month the payment is due to cover (if the first of the month falls on a non-working day, payment will be made by end of business on the first working day

 

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CONFIDENTIAL TREATMENT REQUESTED BY GEVITY HR, INC.

 

thereafter) or  (ii) 4 business days after the date the invoice for the amount of estimated administrative expenses is made available to the Group.  If the payment is not received by BCBSF/HOI by the later of  the end of business on the first calendar day of the month (if the first of the month falls on a non-working day and payment is not made by end of business on the first working day thereafter) or (ii) 4 business days after the date the invoice  for the amount of estimated administrative expenses is made available to the Group, the payment will be considered past due and subject to a Late Payment Charge in accordance with this Agreement and Exhibit A.  If after 1 day the invoice amount is not paid, Corporate Receivables will notify the marketing representative.  The marketing representative will place a call to the group.  If the invoice amount is not paid by the 10th day the marketing representative will contact the group and place the group in suspense.  If on the 15th day, the invoice is not paid the marketing representative will generate and send to the Group by certified mail, a cancellation notification.  BCBSF/HOI has the right, but not the duty; to notify Insured’s of the Group’s failure to make such payment and BCBSF/HOI’s intention to terminate this Agreement.

 

Within 120 days following the close of the contract period BCBSF will prepare an annual administrative expense and annual excess liability coverage expense settlement.  This settlement will compare actual and contract period estimated and paid administrative expenses and excess liability coverage expenses for the same time period.  The product of monthly enrollment as adjusted for retroactive enrollments and terminations during the contract period and the minimum premium rate plus the annual excess liability coverage expense rate will determine actual expenses in effect during the contract period.  If actual expenses are greater than the previously estimated amount, the Group agrees to pay the full amount of the difference within ten (10) calendar days after receipt of the invoice.  If the invoice is not paid within 10 days the payment will be considered past due and subject to a Late Payment Charge in accordance with this Agreement and Exhibit A.  If estimated expenses are greater than actual, BCBSF will pay the Group the difference at the same time the annual administrative expense settlement is presented.

 

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