72-8415a. Districts may self-insure for life, health and disability benefits; provision for employees and dependents; payroll deductions.

72-8415a

Chapter 72.--SCHOOLS
Article 84.--PURCHASE OF INSURANCE

      72-8415a.   Districts may self-insure for life, healthand disability benefits; provision for employees and dependents; payrolldeductions.(a) If the board of education of any school district elects to act as aself-insurer for the provision of health care services, disability incomebenefits or a group life insurance benefit as authorized by K.S.A. 72-8414, andamendments thereto, the board shall make payments for claims, judgments andexpenses for health care services, disability income benefits or group lifeinsurance benefits, whichever is applicable from the special reserve fund ofthe school district.

      The board of education may enter into a trust agreement with any corporateentity having the powers of a trust company within the state of Kansas, and maytransfer from time to time amounts held in the special reserve fund to thecustody of the trustee for safeguarding and investment. Any such trustagreement may grant the trustee the power to exercise such fiscal managementand administrative control as may be necessary for the lawful and efficientmanagement of any such amounts transferred to the custody of the trustee.

      (b)   If theboard of trustees of any community college elects to act as a self-insurer forthe provision of health care services, disability incomebenefits or a group life insurance benefit asauthorized by K.S.A. 72-8414, and amendments thereto, the board shallcreate a separate health care servicesreserve fund or disability income benefits reserve fund, or a separate grouplife insurance benefit reserve fund, or all three, in the budget of thecommunity collegewhich shall be reserve funds for the payments of claims, judgments and expensesfor health care services or disability income benefits or group life insurancebenefits, whichever is applicable. Any balance remaining in any such reservefund at the end of the fiscal year shall be carried forward into that reservefund for succeeding fiscal years. No such fund shall be subject to theprovisions of K.S.A. 79-2925 through 79-2937, and amendments thereto. Inpreparing the budget of suchcommunity college, the amounts credited to and the amount on hand in any suchreserve fund, and the amount expended therefrom shall be included in theannual budget for the information of the residents. Interest earned on theinvestment of moneys in any such fund shall be credited to that fund.

      The board oftrustees, may enter into a trust agreement with any corporate entityhaving the powers of a trust company within the state of Kansas, and maytransfer from time to time amounts held in the health care services reservefund or the disability income benefits reserve fund, or the group lifeinsurance benefit reserve fund, or all three, to the custody of the trustee forsafeguarding and investment. Any such trust agreement may grant the trustee thepower to exercise such fiscal management and administrative control as may benecessary for the lawful and efficient management of any such amountstransferred to the custody of the trustee.

      History:   L. 1980, ch. 226, § 2; L. 1982, ch. 302, § 1; L. 1983,ch. 243, § 2;L. 1992, ch. 119, § 1;L. 2003, ch. 116, § 15; July 1.