Following revocation, the managers shall determine the need for a special revocation audit of claims and the need for a deposit adjustment to secure future liabilities.

• A. Reinsurance Recovery
• B. Filing Fee
• C. Premium Adjustment
• D. Deposit Adjustment

Answer: (D)

After revocation, the key issue is ensuring that any remaining or potential future claim liabilities are properly funded. A special revocation audit of claims helps determine the magnitude and timing of those liabilities. Based on what the audit uncovers, a deposit adjustment may be needed to increase or modify the funds held to secure future liabilities, ensuring the plan’s obligations are covered as claims continue or are settled. Reinsurance recovery focuses on getting money from reinsurers and isn’t the primary tool for funding post-revocation liabilities. Filing fees are merely administrative costs, and a premium adjustment relates to ongoing funding while the plan is active, not the security of future liabilities after revocation. The deposit adjustment directly addresses securing those liabilities, so it’s the correct concept.