The financial statements filed by an approved PEO under §13.570
of this title (relating to Financial Filing Requirements) must report
the trust's reserves as described below:
(1) the trust's year-end reserves must be calculated
as the difference between the trust's total claim distributions and
the aggregate limit attachment point of its stop-loss insurance agreement
for each plan year;
(2) the total claim distributions number used in paragraph
(1) of this section must be the amount of paid claims reduced by any
amount either received or recoverable by the trust associated with
the specific attachment point included in its stop-loss insurance
agreement;
(3) the trust's quarterly reserves must equal the total
amount of its known unpaid claims as the end of the respective calendar
quarter; and
(4) the known unpaid claims number used in paragraph
(3) of this section is the amount of reserve established for a claim
when it is received, reduced by any amount recoverable by the trust
associated with the specific attachment point included in its stop-loss
insurance agreement.
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