SB 120 (BR 1056) - T. Buford
AN ACT relating to insurance.
Create new sections of Subtitle 17A of KRS Chapter 304 to establish minimum standards for self-insured employer-organized association groups; set forth definitions for administrator, employer-organized association, commissioner, deceptive, governmental entity, insolvency, self-insured employer-organized association group, person, qualified actuary, service company, unfair, and agent; prohibit a person or entity from holding itself out as a self-insured employer-organized association group unless it holds a certificate of filing from the commissioner; require a proposed self-insured employer-organized association group to file an application for a certificate of filing with the commissioner and state information required to accompany the application; set forth circumstances under which the commissioner may approve an application; require a group applying for and holding a certificate of filing to have sufficient financial strength to pay all liabilities and to submit required documents demonstrating financial strength to the commissioner; require the funds of a self-insured employer-organized association group to be invested only in securities or other investments permitted by Subtitle 7 of KRS Chapter 304; require an agent of a self-insured employer-organized association group to be licensed as an agent with the life and health lines of authority and to comply with all continuing education and appointment procedures; permit the commissioner to examine the books and records of self-insured employer-organized association groups; set forth provisions regarding termination of a certificate of filing for a self-insured employer-organized association group; state that each group shall be operated by a board of trustees and set forth requirements and duties therefor; allow employers to join a self-insured employer-organized association group after the group has been issued a certificate of filing; permit individual members of a group to be subject to cancellation or termination; require a self-insured employer-organized association to pay all health liabilities which are covered under the terms of the group's evidence of coverage; prohibit a trustee of a group from also being an employee, officer, or director of an administrator and vice versa; require all self-insured employer-organized association groups to file a statement of financial condition with the commissioner; require self-insured employer-organized association groups to file their rates, underwriting guidelines, and evidence of coverage with the commissioner; require groups to establish contribution plans; require every member of a self-insured employer-organized association group to receive written evidence of coverage containing terms, conditions, and exclusions, and setting forth a specific disclosure; allow the commissioner to suspend or revoke a certificate of filing under certain stated conditions; permit the commissioner to promulgate administrative regulations necessary for this Act; prohibit a person from making deceptive statements or omitting material facts in connection with solicitation for membership in a group; prohibit self-insured employer-organized groups from engaging in unfair claims settlement practices; allow the commissioner to suspend or revoke the certificate of filing of a self-insured employer-organized association group or impose a civil penalty of up to $5,000, or both, for stated violations.
SB 120 - AMENDMENTS
SCS - Maintain provisions of original except specify that a qualified actuary means a fellow of the Society of Actuaries rather than the American Society of Actuaries; set forth in greater detail the initial financial requirements and the continuing financial requirements for self-insured employer-organized associations; make technical corrections.
Feb 5-introduced in Senate
Feb 7-to Banking and Insurance (S)
Feb 24-reported favorably, 1st reading, to Consent Calendar with Committee Substitute
Feb 25-2nd reading, to Rules
Feb 28-posted for passage in the Consent Orders of the Day for Monday, March 3, 2003
Mar 3-3rd reading, passed 36-0 with Committee Substitute
Mar 4-received in House; to Banking and Insurance (H); posting waived; posted in committee
Mar 5-reported favorably, 1st reading, to Calendar
Mar 6-2nd reading, to Rules
Mar 10-posted for passage in the Regular Orders of the Day for Tuesday, March 11, 2003
Mar 11-3rd reading, passed 88-0; received in Senate; enrolled, signed by each presiding officer; delivered to Governor
Mar 18-signed by Governor (Acts ch. 78)