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<br />Accounting Period. In the event funds in the hat. of Blue Cross and Blue <br />Shield of Texas, Inc. are still insufficient to pay the remaining claims <br />liability, Blue Cross and Blue Shield of Texas, Inc. will bill the Employer <br />for funds equal to the amount by which any Health Contract Standing Surplus <br />was reduced to zero, in accordance with Article III, Section B.2. for the two <br />(2) Accounting Periods immediately preceding the Final Accounting Period: <br />except that if the Final Accounting Period is of a duration of less than six <br />(6) months then Blue Cross and Blue Shield of Texas, Inc. will bill the <br />Employer for funds equal to the amount by which any Heal th Contract Standing <br />Surplus was reduced to zero, for the three (3) Accounting Periods immediately <br />preceding the Final Accounting Period. Final settlement of all Remaining <br />Health Contract Underwritten Premium and any Health Contract Accounting Period <br />Surplus for the Final Accounting Period if any, not necessary to cover any <br />remaining claims liability will be made during the 27th month following the <br />end of the Final Accounting Period by Blue Cross and Blue Shield of Texas, <br />Inc. <br /> <br />IV - GENERAL PROVISIONS <br /> <br />A. This Agreement does not alter the Health Contract provisions regarding the <br />setting of premium rates. <br /> <br />B. At the date of execution hereof, the normal accounting practice of Blue Cross <br />and Blue Shield of Texas, Inc. in estimating benefits incurred but unpaid <br />during an Accounting Period is a combination of the following: (1) an amount <br />obtained by multiplying that portion of Underwritten Premium attributable to <br />Hospital Expense (as specified in Item IX of the Exhibit) on an annualized <br />basis by 16%, plus (2) an amount obtained by multiplying that portion of <br />Underwritten Premium attributable to Other Medical Expense (as specified in <br />Item IX of the Exhibit) on an annualized basis by 24%. This formula is <br />designed to produce a reliable estimate: therefore, the result attained is <br />subject to modification for known claim liabilities. Appropriate <br />modi fica tions will also be made for Accounting Periods of a duration other <br />than twelve (12) months. Blue Cross and Blue Shield of Texas, Inc. reserves <br />the right to refine and/or revise their normal accounting practice in <br />accordance with sustained experience upon furnishing the Employer a statement <br />of such change. <br /> <br />C. <br /> <br />This Agreement automatically <br />following the date the Health <br />month following written notice <br />thirty (30) days in advance. <br /> <br />terminates the last day of the 24th month <br />Contract terminates or the last day of the 24th <br />given by any party to the other not less than <br /> <br />D. A daily charge equal to the lesser of .05% of the amount of the billing or the <br />maximum rate permitted by State Law may be charged for late remittance of any <br />amounts owed by the Employer under this Agreement. A reaittance will be <br />considered received when actually delivered into the possession or control of <br />Blue Cross and Blue Shield of Texas, Inc. as provided under this agreement. <br /> <br />E. This Agreement shall be null and void and of no force or effect if not <br />executed by the Employer named below and received by Blue Cross and Blue <br />Shield of Texas, Inc. at its home office in Dallas County, Texas within ninety <br />(90) days from the date Blue Cross and Blue Shield of Texas, Inc. executes <br />this Agreement, as shown below. <br /> <br /> <br />+. <br /> <br />