Common use of Rate Stabilization Reserve Clause in Contracts

Rate Stabilization Reserve. (RSR). If the Group is experience rated, neither refunds of any positive nor charges of negative RSR balances will be made to, or charged to the Group at termination. These RSR provisions are part of the experience rating procedures filed with and approved by the State Insurance Commissioner. Also, RSR refunds or charges will not be made if the Group converts to an area rated group, but will be added to, or charged against, the pool used to compute area rated premiums.