BISMARCK, N.D.-North Dakota Insurance Commissioner Adam Hamm approved an insurance premium refund plan today for the Dental Services Corporation of North Dakota (DSC). Hamm has been concerned with the high level of reserves held by the company. The refund returns $7.8 million to group policyholders.
"I'm very pleased to approve the refund plan," Hamm said. "How a company treats its policyholders is as important to me as its continued financial strength. The company's action is a positive step."
The refund returns 100 percent of premium payments made over five and one-quarter months, based on the cost of a fully-insured DSC dental plan in December 2007. Policyholders eligible for a premium refund should receive their refund checks in September.
Hamm strongly encourages employers receiving this refund to give it back to the employees that helped pay the premiums.
"This is outstanding news for Dental Services Corporation policyholders," Hamm said. "This is a sizeable refund that will make a difference in people's pocketbooks."
According to North Dakota law, health service corporations must have at least two months but not more than four months of reserves. This refund is projected to reduce DSC's reserves to 3.25 months.
DSC, an affiliate of Noridian Mutual Insurance Company, insures approximately 2,200 employer groups in North Dakota.