Kentucky Statutes 304.17A-828 – Membership — Liability on termination of membership, insolvency, or bankruptcy
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(1) An employer joining a self-insured employer-organized association group after the group has been issued a certificate of filing shall submit an application for membership to the board of trustees or its administrator. Membership shall take effect no earlier than each member’s date of application. The application for membership and its approval shall be maintained as permanent records of the board of trustees.
(2) Individual members of a self-insured employer-organized association group shall be subject to cancellation by the group pursuant to the governance documents of the group. In addition, individual group members may elect to terminate their participation in the group.
(3) A self-insured employer-organized association shall pay all health liabilities which are covered under the terms, conditions, and exclusions of the group’s evidence of coverage which each member elects during its period of membership. A member who elects to terminate its membership or is canceled by a group remains liable for contribution obligations which were incurred during the canceled or terminated group members’ period of membership. A group member is not relieved of its health liabilities incurred during its period of membership in a self-insured employer- organized association group except through payment of its contribution obligations to the group.
(4) The insolvency or bankruptcy of a group member does not relieve the self-insured employer-organized association group of liability for the payment of health liabilities which are covered under the terms, conditions, and exclusions of the group’s evidence of coverage and incurred during the insolvent or bankrupt group member’s period of membership.
Effective: June 24, 2003
History: Created 2003 Ky. Acts ch. 78, sec. 15, effective June 24, 2003.
(2) Individual members of a self-insured employer-organized association group shall be subject to cancellation by the group pursuant to the governance documents of the group. In addition, individual group members may elect to terminate their participation in the group.
Terms Used In Kentucky Statutes 304.17A-828
- 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
- Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
- 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 - Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
(3) A self-insured employer-organized association shall pay all health liabilities which are covered under the terms, conditions, and exclusions of the group’s evidence of coverage which each member elects during its period of membership. A member who elects to terminate its membership or is canceled by a group remains liable for contribution obligations which were incurred during the canceled or terminated group members’ period of membership. A group member is not relieved of its health liabilities incurred during its period of membership in a self-insured employer- organized association group except through payment of its contribution obligations to the group.
(4) The insolvency or bankruptcy of a group member does not relieve the self-insured employer-organized association group of liability for the payment of health liabilities which are covered under the terms, conditions, and exclusions of the group’s evidence of coverage and incurred during the insolvent or bankrupt group member’s period of membership.
Effective: June 24, 2003
History: Created 2003 Ky. Acts ch. 78, sec. 15, effective June 24, 2003.