Common use of Distribution of Premium Refund Clause in Contracts

Distribution of Premium Refund. The Association, in its sole, absolute, and complete discretion, shall determine the timing and amount of distribution of all, or any part of refunds to Members. The Association shall use the following methodology in its consideration of refund distribution: a) Up to 25% any refund earned may be set aside at the discretion of the Association to offset program administration expenses, establish a contingency reserve fund, offset potential future liabilities, for Association sponsorship, or for any other purpose the Association deems necessary and appropriate. b) Remaining funds will be distributed on a pro-rata basis to the Members of the adjusted plan year as follows: i) 25% will be distributed based on each Member’s percentage share of the total standard premium. ii) 50% will be distributed based on each Member’s standard premium and developed losses as it relates to the refund. iii) 25% will be distributed to each member that has participated in an in-person workers’ compensation training seminar conducted by WSDA or ERNwest within the last three (3) years. c) To be eligible to receive a premium refund a Member must maintain their Association membership in good standing during the plan year and its subsequent adjustment periods. In the event a Member does not maintain their Association membership in good standing, any refund they are entitled to may be used for any purpose the Association’s Retro Oversight Committee deems appropriate. d) At the time of the first adjustment for the plan year Members will receive a partial distribution of up to 40% of the net first adjustment refund (first adjustment refund minus any refund allocated under 7(a) above). Said distribution is at the discretion of the Association’s Retro Oversight Committee. e) At the time of the second adjustment for the plan year Members will receive a partial distribution of up to 70% of the net second adjustment refund (second adjustment refund minus any refund allocated under 7(a) above). Said distribution is at the discretion of the Association Retro Oversight Committee. f) The Association will hold any funds not distributed at the first and second adjustments until the final adjustment at which time final distribution will be made based on the distribution formula set forth in paragraph section 7(b). g) Interest earned on money held by the Association between the first, second and final adjustments will be used by the Association to help offset Program expenses. h) At the time of any distribution should the Member owe funds to L&I, the Association or ERNW, upon approval of the Association’s President, the Member’s refund may be utilized to help satisfy the outstanding balance.