FARGO (AP) - Blue Cross Blue Shield of North Dakota directors have voted to refund more than $26 million to policyholders if regulators approve, the company says.

The refunds would go to policyholders enrolled through a bank depositor, a Nodakare plan sold through Nodak Mutual agents or through a student plan, and to employers who sponsor fully insured coverage for their employees, the Blues said in a statement.

"About a third of our membership of 458,000 would potentially be affected," Blues spokesman Larry Gauper said. "That would not necessarily mean they would get a check, because employers have flexibility - if they're paying all the premium, they might want to use that to offset future increases."

The refunds are contingent on an opinion from Attorney General Wayne Stenehjem that they are legal, and on approval from Insurance Commissioner Jim Poolman, the Blues statement said. Poolman has encouraged a refund, saying the Blues have enough reserves to cover more than four months of claims.

The Blues, North Dakota's largest insurer, currently have reserves of $233 million, Gauper said. The amount after the refunds is projected at about $207 million, which would be about 3.8 months of reserves, he said. The company seeks to keep up to four months of reserves to stabilize its premium rates.

Gauper said the Blues board approved the refunds on Tuesday. They will be based on August premiums, he said.

"We're optimistic that it will be approved, but there is a legal matter because we are a mutual insurance company and, under the law, we are prohibited from declaring a dividend," he said.

Those not eligible for refunds include Medicare supplement members, those covered through the North Dakota Public Employees Retirement System and members of self-funded employer group plans, the Blues statement said. Those groups, it said, "have not contributed significantly to recent increases in the company's financial reserves."