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304.17A-840 Suspension or revocation of certificate of filing.
(1)
(2)
(3)
(4)
The commissioner may suspend or revoke any certificate of filing issued to a
self-insured employer-organized association group if the commissioner finds
that any of the following conditions exist:
(a) The self-insured employer-organized association group is operating
significantly in contravention of its basic organizational document or in a
manner contrary to that described in and reasonably inferred from any
other information submitted under KRS 304.17A-800 to 304.17A-844,
unless amendments to the submissions have been filed with and
approved by the commissioner;
(b) The self-insured employer-organized association group is no longer
financially responsible and may reasonably be expected to be unable to
meet its obligations to participants or prospective participants;
(c) The self-insured employer-organized association group, or any person at
its direction, has advertised or merchandised its services in an untrue,
misrepresentative, misleading, deceptive, or unfair manner;
(d) The self-insured employer-organized association group has engaged in
any unfair or deceptive practices under its certificate of filing; or
(e) The self-insured employer-organized association group has failed to
correct a violation of KRS 304.17A-800 to 304.17A-844 or the
administrative regulations promulgated thereunder, within a reasonable
time period established by the commissioner in administrative regulations.
A certificate of filing shall be suspended or revoked only after compliance with
the hearing procedure set forth in KRS 304.2-310 to 304.2-370.
When a certificate of filing of a self-insured employer-organized association
group is suspended, the group shall not, during the period of suspension, enroll
any new participants and shall not engage in any advertising or solicitation.
If the certificate of filing of a self-insured employer-organized association group
is revoked, the group shall proceed, immediately following the effective date of
the order of revocation, to wind up its affairs and shall conduct no further
business, except as may be essential to the orderly conclusion of the affairs of
the organization. It shall engage in no further advertising or solicitation. The
commissioner may, by written order, prevent further operation of the group if he
or she finds it to be in the best interest of the participants, to the end that the
participants will be afforded the greatest practical opportunity to obtain health
coverage elsewhere. If the commissioner permits further operation, the
self-insured employer-organized association group shall continue to collect the
contributions required of participants.
Effective:July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1269, effective July 15, 2010. -Created 2003 Ky. Acts ch. 78, sec. 21, effective June 24, 2003.
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