2009 Kentucky Revised Statutes Subtitle 17A. Health Benefit Plans 304.17A.826 Operation of group by board of trustees -- Powers and duties -- Prohibited acts.
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304.17A-826 Operation of group by board of trustees -- Powers and duties --
Prohibited acts.
(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 <br>employer-organized association or by other laws of the Commonwealth. The <br>trustees shall not be officers, employees, or agents of an administrator or servicing <br>organization. All trustees shall be residents of Kentucky or officers of corporations <br>authorized to do business in Kentucky. The trustees shall have the authority to <br>administer the operations of the self-insured employer-organized association group, <br>and to assure that there is adequate funding to cover health liabilities, that all claims <br>are paid promptly, and that all necessary precautions are taken to safeguard the <br>assets of the group.
(2) The board of trustees shall:
(a) Maintain responsibility for all moneys collected or disbursed from the group; <br>(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 <br>the written minutes of its meetings the areas of authority it delegates to the <br>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; <br>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 <br>304.17A-844 referring to trustees shall be construed as referring to directors.
Effective: July 15, 2010 <br>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.
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