(1) The State Fund, subject to the approval of the State Fund board of directors, may establish each fiscal year and charge a minimum loss based premium to a policy with an effective date between July 1 and June 30 inclusive, in order to cover the risk of loss for coverage of small employers.

(2) The minimum loss based premium may be derived by establishing a minimum yearly payroll. The minimum loss based premium shall be determined by multiplying the minimum yearly payroll by the rate of the governing classification of the policy. The board may adopt an amount that the minimum loss based premium may not be below, and may adopt an amount that the minimum loss based premium may not exceed.

(3) Minimum loss based premium may be established as a flat dollar amount.