§ 27-41-7 - Fiduciary responsibilities.
SECTION 27-41-7
§ 27-41-7 Fiduciary responsibilities.– (a) Any director, officer, or employee of a health maintenance organization whoreceives, collects, disburses, or invests funds in connection with theactivities of the organization shall be responsible for those funds in afiduciary relationship to the enrollees.
(b) A health maintenance organization shall maintain in forcea fidelity bond on employees or officers in an amount not less than one hundredthousand dollars ($100,000) or any greater sum that may be prescribed by thedirector. All fidelity bonds shall be written with at least a one yeardiscovery period and if written with less than a three (3) year discoveryperiod shall contain a provision that no cancellation or termination of thebond, whether by or at the request of the insured or by the underwriter, shalltake effect prior to the expiration of ninety (90) days after written notice ofcancellation or termination has been filed with the director unless an earlierdate of cancellation or termination is approved by the director.