2009 Kentucky Revised Statutes Subtitle 17A. Health Benefit Plans 304.17A.828 Membership -- Liability on termination of membership, insolvency, or bankruptcy.
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304.17A-828 Membership -- Liability on termination of membership, insolvency, or
bankruptcy.
(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 <br>membership to the board of trustees or its administrator. Membership shall take <br>effect no earlier than each member's date of application. The application for <br>membership and its approval shall be maintained as permanent records of the board <br>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 <br>group. In addition, individual group members may elect to terminate their <br>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 <br>coverage which each member elects during its period of membership. A member <br>who elects to terminate its membership or is canceled by a group remains liable for <br>contribution obligations which were incurred during the canceled or terminated <br>group members' period of membership. A group member is not relieved of its health <br>liabilities incurred during its period of membership in a self-insured employer-<br>organized association group except through payment of its contribution obligations <br>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 <br>liabilities which are covered under the terms, conditions, and exclusions of the <br>group's evidence of coverage and incurred during the insolvent or bankrupt group <br>member's period of membership.
Effective: June 24, 2003 <br>History: Created 2003 Ky. Acts ch. 78, sec. 15, effective June 24, 2003.
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