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304.17A-828 Membership -- Liability
insolvency, or bankruptcy.
(1)
(2)
(3)
(4)
on
termination
of
membership,
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.
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.
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.
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.
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