2016 Kentucky Revised Statutes CHAPTER 304 - INSURANCE CODE 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.
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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
employer-organized association or by other laws of the Commonwealth. The
trustees shall not be officers, employees, or agents of an administrator or servicing
organization. All trustees shall be residents of Kentucky or officers of corporations
authorized to do business in Kentucky. The trustees shall have the authority to
administer the operations of the self-insured employer-organized association group,
and to assure that there is adequate funding to cover health liabilities, that all claims
are paid promptly, and that all necessary precautions are taken to safeguard the
assets of the group.
The board of trustees shall:
(a) Maintain responsibility for all moneys collected or disbursed from the group;
(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
the written minutes of its meetings the areas of authority it delegates to the
administrator.
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;
or
(b) Permit the loan of any moneys to, or borrow any moneys from, the group or in
the name of the group.
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
304.17A-844 referring to trustees shall be construed as referring to directors.
Effective: July 15, 2010
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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