Kentucky Statutes 304.17A-844 – Prohibited activities — Penalties
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(1) After a hearing or upon agreement by the self-insured employer-organized association group, the commissioner may suspend or revoke the certificate of filing of a self-insured employer-organized association group, impose a civil penalty of up to five thousand dollars ($5,000) per violation on a self-insured employer-organized association group, or both, for:
(a) Violations of KRS § 304.12-237, 304.17A-800 to 304.17A-844, or administrative regulations promulgated thereunder;
(b) Obtaining a certificate of filing by unfair or deceptive means; (c) Operating in a financially hazardous manner;
(d) Misappropriation, conversion, illegal withholding, or refusal to pay over upon proper demand any moneys that belong to a member, an employee of a member, or a person otherwise entitled thereto by the group or its administrator; or
(e) Unfair or deceptive business practices.
(2) The commissioner, in his or her discretion and without advance notice or a hearing thereon, may suspend or revoke the certificate of filing of any self-insured employer-organized association group upon the commencement of the following proceedings:
(a) Receivership;
(b) Conservatorship; (c) Rehabilitation; or
(d) Other delinquency proceedings.
Effective: June 29, 2021
History: Amended 2021 Ky. Acts ch. 30, sec. 3, effective June 29, 2021. — Amended
2010 Ky. Acts ch. 24, sec. 1271, effective July 15, 2010. — Created 2003 Ky. Acts ch. 78, sec. 23, effective June 24, 2003.
(a) Violations of KRS § 304.12-237, 304.17A-800 to 304.17A-844, or administrative regulations promulgated thereunder;
Terms Used In Kentucky Statutes 304.17A-844
- Association: means an entity, other than an employer-organized association, that has been organized and is maintained in good faith for purposes other than that of obtaining insurance for its members and that has a constitution and bylaws. See Kentucky Statutes 304.17A-005
- Employer-organized association: means any of the following:
(a) Any entity that was qualified by the commissioner as an eligible association prior to April 10, 1998, and that has actively marketed a health insurance program to its members since September 8, 1996, and which is not insurer- controlled. See Kentucky Statutes 304.17A-005
(b) Obtaining a certificate of filing by unfair or deceptive means; (c) Operating in a financially hazardous manner;
(d) Misappropriation, conversion, illegal withholding, or refusal to pay over upon proper demand any moneys that belong to a member, an employee of a member, or a person otherwise entitled thereto by the group or its administrator; or
(e) Unfair or deceptive business practices.
(2) The commissioner, in his or her discretion and without advance notice or a hearing thereon, may suspend or revoke the certificate of filing of any self-insured employer-organized association group upon the commencement of the following proceedings:
(a) Receivership;
(b) Conservatorship; (c) Rehabilitation; or
(d) Other delinquency proceedings.
Effective: June 29, 2021
History: Amended 2021 Ky. Acts ch. 30, sec. 3, effective June 29, 2021. — Amended
2010 Ky. Acts ch. 24, sec. 1271, effective July 15, 2010. — Created 2003 Ky. Acts ch. 78, sec. 23, effective June 24, 2003.