RELATES TO:
KRS
304.38-070
NECESSITY, FUNCTION, AND CONFORMITY:
KRS
304.38-150 provides that the Commissioner of
Insurance shall adopt reasonable rules and administrative regulations to
administer KRS Chapter 304, Subtitle 38. This administrative regulation
provides that the health maintenance organization satisfy the commissioner as
to their fiscal soundness so as to guarantee that its obligations to enrol-lees
will be performed.
Section 1. Each
health maintenance organization choosing to meet the financial requirements of
KRS
304.38-070 by depositing with the
commissioner through the Custodian of Insurance Securities, certificates of
deposit, cash, or general obligations issued, assumed or guaranteed by the
United States, shall maintain their said deposits at market value at least
equal to their required amount of deposit. Any general obligations referred to
herein shall be in bearer form.
Section
2. The health maintenance organization shall pay into the Treasury
of the Commonwealth, through the Department of the Commissioner of Insurance,
its portion of the expense fund used in paying the custodian's salary, premium
on his bond and other necessary expenses incident to the office used by the
custodian. The portion of such expense fund to be paid by each company shall be
in the same approximate proportion as the amount such company had on deposit on
December 31 of the preceding year bears to the total of deposits with the
Custodian of Insurance Securities as of December 31 of the preceding year. The
executive director shall assess such company for its proportionate share of
such expense fund. The minimum charge for each company shall be two (2)
dollars.
