Section 376.1012

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS

Chapter 376

Effective - 28 Aug 2007   

  376.1012.  Funds collected from employers held in trust — requirements — board of trustees, elected, duties — annual report, filed when. — Funds collected from the participating employers under multiple employer self-insured health plans shall be held in trust subject to the following requirements:

  (1)  A board of trustees elected by participating employers shall serve as fund managers on behalf of participants.  Trustees shall be plan participants.  No participating employer may be represented by more than one trustee.  No trustee may represent more than one employer. A minimum of three and a maximum of seven trustees may be elected.  Trustees may not receive remuneration but they may be reimbursed for actual and reasonable expenses incurred in connection with duties as trustee.  A trustee may not be an agent, or broker for or an owner, officer or employee of any third-party administrator, insurance agency or insurer utilized by the plan.  The trustees shall have the authority to approve applications of association members for participation in the arrangement and to contract with a licensed third-party administrator to administer the day-to-day affairs of the plan;

  (2)  Each trustee shall be bonded in an amount of not less than one hundred fifty thousand dollars by a licensed insurer;

  (3)  Investment of plan funds is subject to the same restrictions which are applicable to insurers pursuant to sections 376.291 to 376.307; provided, however, that no foreign plan shall be exempt under section 376.310 from the investment laws of this state unless such plan is subject to laws in its state of domicile which are substantially similar to sections 376.1032 to 376.1045.  All investments shall be managed by a bank or other investment entity licensed to operate in Missouri;

  (4)  Trustees, on behalf of the plan, shall file an annual report with the director of the department of commerce and insurance by March first showing the condition and affairs of the plan as of the preceding thirty-first day of December.  The report shall be made on forms prescribed by the director.  The report shall summarize the financial condition of the fund, itemize collections from participating employers, detail all fund expenditures and provide any additional information which the director requires.  More frequent reports may be required at the discretion of the director.

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(L. 1993 H.B. 709 § 27, A.L. 2007 S.B. 66)