2007 California Insurance Code Chapter 8. Major Risk Medical Insurance Fund

CA Codes (ins:12739-12739.4)

12739.  (a) There is hereby created in the State Treasury a special
fund known as the Major Risk Medical Insurance Fund that is,
notwithstanding Section 13340 of the Government Code, continuously
appropriated to the board for the purposes specified in Sections
10127.15 and 12739.1 and Section 1373.62 of the Health and Safety
Code.
   (b) After June 30, 1991, the following amounts shall be deposited
annually in the Major Risk Medical Insurance Fund:
   (1) Eighteen million dollars (,000,000) from the Hospital
Services Account in the Cigarette and Tobacco Products Surtax Fund.
   (2) (A) Eleven million dollars (,000,000) from the Physician
Services Account in the Cigarette and Tobacco Products Surtax Fund.
   (B) Notwithstanding subparagraph (A), for the 2007-08 fiscal year
only, the Controller shall reduce the amount deposited into the Major
Risk Medical Insurance Fund from the Physician Services Account in
the Cigarette and Tobacco Products Surtax Fund to one million dollars
(,000,000).
   (3) One million dollars (,000,000) from the Unallocated Account
in the Cigarette and Tobacco Products Surtax Fund.



12739.05.  Notwithstanding Section 12739, funds placed in the Major
Risk Medical Insurance Fund pursuant to Section 1341.45 of the Health
and Safety Code shall not be continuously appropriated.



12739.1.  Except as provided in Section 12739.2, the board shall
authorize the expenditure of money in the fund to cover program
expenses, including program expenses that exceed subscriber
contributions, and to cover expenses relating to Section 10127.15, or
to Section 1373.62 of the Health and Safety Code.  The board shall
determine the amount of funds expended for each of these purposes,
taking into consideration the requirements of this part, Section
10127.15, and Section 1373.62 of the Health and Safety Code.



12739.2.  From money appropriated by the Legislature to the fund,
the board may expend sufficient funds to carry out the purposes of
this part and of Section 10127.15 and Section 1373.62 of the Health
and Safety Code.
   However, the state shall not be liable beyond the assets of the
fund for any obligations incurred, or liabilities sustained, in the
operation of the California Major Risk Medical Insurance Program or
for the expenditures described in Section 10127.15 and Section
1373.62 of the Health and Safety Code.



12739.3.  Any moneys remaining in the fund at the end of any fiscal
year may be carried forward to the next succeeding fiscal year.



12739.4.  The board shall establish a reserve which is sufficient to
prudently operate the program.