376.1508. Processing fee--cancellation of membership, effect of.
Processing fee--cancellation of membership, effect of.
376.1508. 1. A discount medical plan organization may charge areasonable one-time processing fee and a periodic charge as long as the feeis disclosed to the applicant.
2. If the member cancels the membership within the first thirty daysafter receipt of the discount card and other membership materials, themember shall receive a reimbursement of all periodic charges paid. Thereturn of all periodic charges shall be made within thirty days of the dateof the cancellation. If all of the periodic charges have not been paidwithin thirty days, interest shall be assessed and paid on the proceeds ata rate of the treasury bill rate of the preceding calendar year, plus twopercentage points.
3. The right of cancellation shall be set out in the writtenmembership materials on the first page, in ten-point type or larger.
4. If a discount medical plan organization cancels a membership forany reason other than nonpayment of charges by the member, the discountmedical plan organization shall make a pro rata reimbursement of allperiodic charges to the member.
(L. 2007 H.B. 818 merged with S.B. 66)Effective 8-28-07 (S.B. 66)
1-01-08 (H.B. 818)