Kentucky Statutes 304.17A-826 – Operation of group by board of trustees — Powers and duties — Prohibited acts
Current as of: 2024 | Check for updates
|
Other versions
(1) Each group shall be operated by a board of trustees which shall consist of not less than two (2) persons selected in the manner prescribed by the self-insured employer-organized association or by other laws of the Commonwealth. The trustees shall not be officers, employees, or agents of an administrator or servicing organization. All trustees shall be residents of Kentucky or officers of corporations authorized to do business in Kentucky. The trustees shall have the authority to administer the operations of the self-insured employer-organized association group, and to assure that there is adequate funding to cover health liabilities, that all claims are paid promptly, and that all necessary precautions are taken to safeguard the assets of the group.
(2) The board of trustees shall:
(a) Maintain responsibility for all moneys collected or disbursed from the group; (b) Maintain minutes of its meetings and make the minutes available to the
commissioner; and
(c) Designate an administrator to carry out the policies established by the board of trustees and to provide day-to-day management of the group, and delineate in the written minutes of its meetings the areas of authority it delegates to the administrator.
(3) The board of trustees shall not:
(a) Extend credit to individual group members for payment of contributions or assessments, except pursuant to payment plans filed with the commissioner; or
(b) Permit the loan of any moneys to, or borrow any moneys from, the group or in the name of the group.
(4) In its discretion, the self-insured employer-organized association group may refer to its trustees as directors. If this is done, the provisions of KRS § 304.17A-800 to
304.17A-844 referring to trustees shall be construed as referring to directors.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1266, effective July 15, 2010. — Created
2003 Ky. Acts ch. 78, sec. 14, effective June 24, 2003.
(2) The board of trustees shall:
Terms Used In Kentucky Statutes 304.17A-826
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Association: means an entity, other than an employer-organized association, that has been organized and is maintained in good faith for purposes other than that of obtaining insurance for its members and that has a constitution and bylaws. See Kentucky Statutes 304.17A-005
- Directors: when applied to corporations, includes managers or trustees. See Kentucky Statutes 446.010
- Employer-organized association: means any of the following:
(a) Any entity that was qualified by the commissioner as an eligible association prior to April 10, 1998, and that has actively marketed a health insurance program to its members since September 8, 1996, and which is not insurer- controlled. See Kentucky Statutes 304.17A-005 - Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
(a) Maintain responsibility for all moneys collected or disbursed from the group; (b) Maintain minutes of its meetings and make the minutes available to the
commissioner; and
(c) Designate an administrator to carry out the policies established by the board of trustees and to provide day-to-day management of the group, and delineate in the written minutes of its meetings the areas of authority it delegates to the administrator.
(3) The board of trustees shall not:
(a) Extend credit to individual group members for payment of contributions or assessments, except pursuant to payment plans filed with the commissioner; or
(b) Permit the loan of any moneys to, or borrow any moneys from, the group or in the name of the group.
(4) In its discretion, the self-insured employer-organized association group may refer to its trustees as directors. If this is done, the provisions of KRS § 304.17A-800 to
304.17A-844 referring to trustees shall be construed as referring to directors.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1266, effective July 15, 2010. — Created
2003 Ky. Acts ch. 78, sec. 14, effective June 24, 2003.