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40-4207. Membership fees; fiduciary responsibility of plan; deposit in bank account; records.

40-4207

Chapter 40.--INSURANCE
Article 42.--PREPAID LEGAL AND DENTAL SERVICE PLANS

      40-4207.   Membership fees; fiduciary responsibility of plan; deposit inbank account; records.All membership fees collected by a prepaid service plan on behalfof members shall be held by the prepaid service plan in a fiduciary capacityand shall be deposited promptly after receipt in a bank account establishedand maintained by the prepaid service plan. The prepaid service plan shallmaintain records clearly recording the deposits in and withdrawals fromsuch account on behalf of or for each member. The prepaid service plan shallkeep copies of all such records.

      History:   L. 1987, ch. 157, § 7; Jan. 1, 1988.

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