SECTIONS 10830 - California Statutes

INSURANCE CODE

SECTION 10830

10830. No owner, officer, partner, or board members or members of
their household nor any management personnel of the alliance may be
employed by, be a consultant for, be a member of the board of
directors of, be affiliated with an agent of, or otherwise be a
representative of any carrier or other insurer, agent or broker, or a
health care provider. This provision shall not preclude any of the
above from purchasing coverage through an alliance.
Any employee of a purchasing alliance and any person or
organization having any ownership interest in a purchasing alliance
or any organization the alliance contracts with for marketing
purposes shall be prohibited from receiving compensation based upon
the health status, claims experience, industry, occupation, or
geographic location of participating employers or small employers or
the participating employer's or small employer's employees exclusive
of a compensation arraignment that provides compensation on the basis
of a percentage of premium, provided that the percentage shall not
vary because of health status, industry, occupation, medical
utilization, claims experience, or geographic location within a
service region. Those employees, persons, and organizations are
expressly prohibited from receiving compensation based upon a
participating carrier's loss ratio resulting from the carrier's
participation in the purchasing alliance.
Additionally, any employee of a purchasing alliance and those
persons or organizations having an ownership interest in the
purchasing alliance shall be prohibited from encouraging or directing
employers or small employers to seek coverage from a source other
than the alliance because of the health status, claims experience,
industry, occupation, or geographic location of the employer or small
employer or the employer's or small employer's employees.