376.1002. Certificate of authority required--penalty for noncompliance--law inapplicable, when--exempt organizations.

Certificate of authority required--penalty for noncompliance--lawinapplicable, when--exempt organizations.

376.1002. 1. It is unlawful for any multiple employer self-insuredhealth plan to transact business in this state without a certificate ofauthority issued by the director of the department of insurance, financialinstitutions and professional registration. Any of the acts described insubsection 2 of section 375.786, RSMo, effected by mail or otherwise, by or onbehalf of a multiple employer self-insured health plan, constitutes thetransaction of business in this state.

2. Any multiple employer self-insured health plan which transactsbusiness in this state without the certificate of authority required bysections 376.1000 to 376.1045 is considered to be an unauthorized insurerwithin the meaning of section 375.786, RSMo, and all remedies and penaltiesprescribed in section 375.786, RSMo, shall be fully applicable.

3. Sections 376.1000 to 376.1045 do not apply to:

(1) Any plan or arrangement established or maintained by municipalities,counties, or other political subdivisions of the state pursuant to sections537.620 to 537.650, RSMo;

(2) Any multiple employer self-insured health plan which is not subjectto the application of state insurance laws under the provisions of theEmployee Retirement Income Security Act of 1974, 29 U.S.C. 1001, et seq.; or

(3) Any person or entity found by operation of the provisions of section374.194, RSMo, not to be subject to the jurisdiction of the department ofinsurance, financial institutions and professional registration.

4. A multiple employer self-insured health plan which was in existenceprior to August 28, 1993, and which is associated with or organized orsponsored by a homogenous association exempt from taxation under 26 U.S.C.501(c)(6) and controlled by a board of directors a majority of whom aremembers of the association, is exempt from the requirements of sections376.1000 to 376.1045 and the insurance laws of this state. To prove exemptionfrom taxation under 26 U.S.C. 501(c)(6), the association shall provide to thedirector a certificate issued by the United States Internal Revenue Servicedemonstrating the association's tax exempt status.

(L. 1993 H.B. 709 § 23)