State Codes and Statutes
Statutes > Kansas > Chapter40 > Article32 > Statutes_1803140-3233
40-3233. Rehabilitation, liquidation or conservationof health maintenance organization; commissioner's powers; priority ofenrollee; distribution of assets.(a) A rehabilitation liquidation or conservation of a healthmaintenance organization shall be deemed to be the rehabilitation, liquidationor conservation of an insurance company and shall be conducted under thesupervision of the commissioner pursuant to the law governing therehabilitation, liquidation or conservation of insurance companies. Thecommissioner may apply for an order directing the commissioner to rehabilitate,liquidate or conserve a health maintenance organization upon any one or moregrounds set out in the insurers supervision, rehabilitation and liquidationact, K.S.A. 40-3605 et seq., and amendments thereto, or when in thecommissioner's discretion thecontinued operation of such health maintenance organization would be hazardouseither to the enrollees of such health maintenance organization or to thepeople of this state. Each enrollee of such health maintenance organizationshall have the same priority in the event of liquidation or rehabilitation asthe law provides to policy holders of an health organization.
(b) For purpose of determining the priority of distribution of generalassets, any claim of any enrollee or enrollees' beneficiary shall have the samepriority as established by K.S.A. 40-3641, and amendments thereto, forpolicyholders and beneficiaries of insureds of insurance companies. If anenrollee is liable to a nonparticipating provider for services providedpursuant to and covered by the health maintenance organization, such liabilityshall have the status of such enrollee's claim for distribution of generalassets. A provider who is obligated by statute or agreement to hold anyenrollee harmless from liability for services provided pursuant to and coveredby a health maintenance organization shall have a priority of distribution ofthe general assets immediately following that of enrollees and enrollees'beneficiaries as described herein, and immediately preceding the priority ofdistribution described in subsection (d) of K.S.A. 40-3641 and amendmentsthereto.
History: L. 2000, ch. 147, § 34; July 1.
