379.934. Establishment of class of business, reasons--number of classes that may be established--promulgation of rules for period of transition--establishment of additional classes.
Establishment of class of business, reasons--number of classes thatmay be established--promulgation of rules for period oftransition--establishment of additional classes.
379.934. 1. A small employer carrier may establish a classof business only to reflect substantial differences in expectedclaims experience or administrative costs related to thefollowing reasons:
(1) The small employer carrier uses more than one type ofsystem for the marketing and sale of health benefit plans tosmall employers;
(2) The small employer carrier has acquired a class ofbusiness from another small employer carrier; or
(3) The small employer carrier provides coverage to one ormore association groups that meet the requirements of subdivision(5) of subsection 1 of section 376.421, RSMo.
2. A small employer carrier may establish up to nineseparate classes of business under subsection 1 of this section.A small employer carrier which immediately prior to the effectivedate of sections 379.930 to 379.952* had established more thannine separate classes of business may, on the effective date ofsections 379.930 to 379.952*, establish no more than twelveseparate classes of business, and shall reduce the number of suchclasses to eleven within one year after the effective date ofsections 379.930 to 379.952*; ten within two years after suchdate; and nine within three years after such date.
3. The director may promulgate rules to provide for aperiod of transition in order for a small employer carrier tocome into compliance with subsection 2 of this section in theinstance of acquisition of an additional class of business fromanother small employer carrier.
4. The director may approve the establishment of additionalclasses of business upon application to the director and afinding by the director that such action would enhance theefficiency and fairness of the small employer marketplace.
(L. 1992 S.B. 796 § 3)Effective 7-1-93
*See § 379.940 subsec. 5 for effective dates.