354.425. Bonding of officers who disburse or invest funds--bond requirements. - Missouri Statutes

Bonding of officers who disburse or invest funds--bond requirements.

354.425. Any director, officer or partner of a healthmaintenance organization who receives, collects, disburses, orinvests funds in connection with the activities of suchorganization shall be fiduciaries of such funds. Every healthmaintenance organization shall maintain in force a surety bond onsuch officers and employees in an amount of not less than onehundred thousand dollars, or such other sum as may be prescribedby the director. All such bonds shall be written with at least aone-year discovery period and, if written with less than athree-year discovery period, shall contain a provision that nocancellation or termination of the bond, whether by or at therequest of the insured or by the underwriter, shall take effectprior to the expiration of ninety days after written notice ofsuch cancellation or termination has been filed with thedirector, unless an earlier date of such cancellation ortermination is approved by the director.

(L. 1983 H.B. 127)