Specifications include, but are not limited to: The contractor shall provide the structuring of the administration of the ARM Plan under the Contract
Carrier Option or the Servicing Carrier Option for the Department in accordance with the provisions and
requirements stated herein and to the sole satisfaction of the Department.
a. It is highly desirable that the contractor provide services under the Contract Carrier Option thereby
assuming all risk for the paid losses and Allocated Loss Adjustment Expenses (ALAE) of the Missouri
residual market up to a retention level of a minimum of 100% of collected premium, with higher
retention levels of 105%, 110%, and 115% being preferred.
b. The Department’s goal is to balance protecting the voluntary market from deficits while avoiding
significant rate increases for policyholders covered by the ARM Plan.
c. If the contractor provides the Servicing Carrier Option, the Department may not be able to identify
“direct assignment carriers” prior to January 1, 2020.