(1) The reserves in a risk pool in a given fiscal year shall be maintained at the level recommended by the program's consulting actuary and approved or ratified by the board. If the reserves drop below that level, covered employers in the risk pool are required to cure any deficiency in the reserve.
(2) If substantial excess reserves are accrued above those required by this chapter, and the board determines that a refund is appropriate, a refund shall be made:
(a) to covered employers which shall then make a refund to covered individuals on the basis of the contribution of each to the plan; or
(b) directly to covered individuals on the basis of the contribution of each to the plan.