33-31-223. Fiduciary responsibilities. (1) Any director, officer, employee, or partner of a health maintenance organization who receives, collects, disburses, or invests funds in connection with the activities of the health maintenance organization is responsible for the funds in the manner of a fiduciary to the health maintenance organization.
(2) A health maintenance organization shall maintain in force a fidelity bond on employees and officers in an amount not less than $100,000 or such other sum as may be prescribed by the commissioner. Each bond must be written with at least a 1-year discovery period and, if written with less than a 3-year discovery period, must contain a provision that a cancellation or termination of the bond, whether by or at the request of the insured or by the underwriter, may not take effect prior to the expiration of 90 days after written notice of the cancellation or termination has been filed with the commissioner unless the commissioner approves an earlier cancellation or termination date.
History: En. Sec. 7, Ch. 457, L. 1987.
Structure Montana Code Annotated
Title 33. Insurance and Insurance Companies
Chapter 31. Health Maintenance Organizations
Part 2. Authorization of Health Maintenance Organizations
33-31-201. Establishment of health maintenance organizations
33-31-202. Issuance of certificate of authority
33-31-203. Powers of insurers and health service corporations
33-31-204. Acquisition, control, or merger of a health maintenance organization
33-31-205. through 33-31-210 reserved
33-31-211. Annual statements -- revocation for failure to file -- penalty for false swearing
33-31-213. and 33-31-214 reserved
33-31-215. Investment regulations
33-31-216. Protection against insolvency
33-31-217. through 33-31-220 reserved