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L f Accounting Period. In the event funds in the hands of Blue Cross and Blue Shield of Texas, Inc. are still insufficient to pay the remaining claims liability, Blue Cross and Blue Shield of Texas. Inc. will bill the Employer for funds equal to the amount by which any Health Contract Standing Surplus reduced to zero, in accordance with Article III, Section B.2. for the two Accounting Periods immediately preceding the Final Accounting Period; 'ept that if the Final Accounting Period is of a duration of less than six (6) months then Blue Cross and Blue Shield of Texas, Inc. will bill the Employer for funds equal to the amount by which any Health Contract Standing Surplus was reduced to zero, for the three (3) Accounting Periods immediately preceding the Final Accounting Period. Final settlement of all Remaining Health Contract Underwritten Premium and any Health Contract Accounting Period Surplus for the Final Accounting Period if any, not necessary to cover any remaining claims liability will be made during the 27th month following the end of the Final Accounting Period by Blue Cross and Blue Shield of Texas, Inc. IV — GENERAL PROVISIONS This Agreement does not alter the Health Contract provisions regarding the setting of premium rates. At the date of execution hereof, the normal accounting practice of Blue Cross and Blue Shield of Texas. Inc. in estimating benefits incurred but unpaid during an Accounting Period is a combination of the following: (1) an amount obtained by multiplying that portion of Underwritten Premium attributable to Hospital Expense (as specified in Item IX of the Exhibit) on an annualized basis by 16%. plus (2) an amount obtained by multiplying that portion of erwritten Premium attributable to Other Medical Expense (as specified in m IX of the Exhibit) on an annualized basis by 24 %. This formula is ,-.igned to produce a reliable estimate; therefore, the result attained is subject to modification for known claim liabilities. Appropriate modifications will also be made for Accounting Periods of a duration other than twelve (12) months. Blue Cross and Blue Shield of Texas, Inc. reserves the right to refine and /or revise their normal accounting practice in accordance with sustained experience upon furnishing the Employer a statement of such change. 4 This Agreement automatically terminates the last day of the 24th month following the date the Health Contract terminates or the last day of the 24th month following written notice given by any party to the other not less than thirty (30) days in advance. A daily charge equal to the lesser of .05% of the amount of the billing or the maximum rate permitted by State Law may be charged for late remittance of any amounts owed by the Employer under this Agreement. A remittance will be considered received when actually delivered into the possession or control of Blue Cross and Blue Shield of Texas. Inc. as provided under this agreement. This Agreement shall be null and void and of no force or effect if not executed by the Employer named below and received by Blue Cross and Blue Shield of Texas. Inc. at its home office in Dallas County, Texas within ninety 90) days from the date Blue Cross and Blue Shield of Texas. Inc. executes F Agreement, as shown below. j