40-3225. Fiduciary responsibilities; fidelity bond or insurance. - Kansas Statutes

40-3225

Chapter 40.--INSURANCE Article 32.--HEALTH MAINTENANCE ORGANIZATIONS AND MEDICARE PROVIDER ORGANIZATIONS

      40-3225.   Fiduciary responsibilities; fidelity bond or insurance.(a) Any director, officer or partner of a health maintenance organizationor medicare provider organization who receives, collects, disburses orinvests funds in connection with theactivities of such organization shall be responsible for such funds in afiduciary relationship to the health maintenance organization or medicareprovider organization.

      (b)   A health maintenance organization shall maintain in force a fidelitybond or fidelity insurance on such employees and officers, directors andpartners in the amount not less than $250,000 for each health maintenanceorganization or a maximum of $5,000,000 in aggregate maintained on behalf ofhealth maintenance organizations owned by a common parent corporation, or suchsum as may be prescribed by the commissioner.

      History:   L. 1974, ch. 181, § 25;L. 1996, ch. 169, § 10;L. 1998, ch. 174, § 27; July 1.