287.877. Insolvent member, board may determine, how--notice to division, when. - Missouri Statutes

Insolvent member, board may determine, how--notice to division, when.

287.877. 1. Upon determination by majority vote that anymember employer may be insolvent or in a financial conditionhazardous to the employees thereof or to the public, it shall bethe duty of the board of directors to notify the division ofworkers' compensation of any information indicating suchcondition.

2. The board of directors may, upon majority vote, requestthat the division determine the condition of any member employerwhich the board in good faith believes may no longer be qualifiedto be a member of the corporation. Within thirty days of thereceipt of such request or, for good cause shown, within areasonable time thereafter, the division shall make suchdetermination and shall forthwith advise the board of itsfindings. Each request for a determination shall be kept on fileby the division, but the request shall not be open to publicinspection prior to the release of the determination to thepublic.

3. It shall also be the duty of the division to report tothe board of directors when it has reasonable cause to believethat a member employer may be in such a financial condition as tobe no longer qualified to be a member of the corporation.

4. The board of directors may, upon majority vote, makereports and recommendations to the division upon any matter whichis germane to the solvency, liquidation, rehabilitation, orconservation of any member employer. Such reports andrecommendations shall not be considered public documents.

5. The board of directors may, upon majority vote, makerecommendations to the division for the detection and preventionof employer insolvencies.

6. The board of directors shall, at the conclusion of anymember employer's insolvency in which the corporation wasobligated to pay covered claims, prepare a report on the historyand cause of such insolvency, based on the information availableto the corporation, and shall submit such report to the division.

7. Both the board and the division shall, under the plan ofoperation, pursuant to section 287.870, and any applicable rulesand regulations, establish further recommendations as theoccasion suggests.

(L. 1992 H.B. 975)