(1) The premium rate shall be actuarially sound.
(2) School districts, education service cooperatives, or open-enrollment public charter schools shall make payment of premium when demand is made as scheduled in the contract.
(3) Any school district, education service cooperative, or open-enrollment public charter school which does not pay the premium when due shall be charged a rate of interest at five percent (5%) per annum on all payments due and unpaid on the policy issued.
(4) The State Insurance Department may cancel insurance coverage for school districts, education service cooperatives, or open-enrollment public charter schools that fail to pay the premium due within thirty (30) days.
(5) The department shall give thirty (30) days' notice before any cancellation for nonpayment.
(6) Rules of the department shall include such items as payment of premiums and other pertinent items with reference to the premium rate, but the rules shall not be more stringent than practices of commercial companies writing similar insurance in Arkansas.
(7) Premiums collected by the Public Elementary and Secondary School Insurance Program shall continue to be subject to any premium tax now or hereafter levied for the support of the firemen's pension and relief fund.