31A-42a-201 (Effective 01/01/13) - Creation of defined contribution market risk adjuster mechanism -- Board of directors -- Appointment -- Terms -- Quorum -- Plan preparation.
31A-42a-201 (Effective 01/01/13). Creation of defined contribution market riskadjuster mechanism -- Board of directors -- Appointment -- Terms -- Quorum -- Planpreparation.
(1) There is created the Utah Statewide Risk Adjuster, a nonprofit entity within theInsurance Department.
(2) (a) There is created the Utah Statewide Risk Adjuster Board composed of up to ninemembers described in Subsection (2)(b).
(b) The board of directors shall consist of:
(i) the following directors appointed by the governor with the consent of the Senate:
(A) at least three, but up to five, directors with actuarial experience who representinsurance carriers:
(I) that are participating or have committed to participate in the defined contributionarrangement market in the state; and
(II) including at least one and up to two directors who represent a carrier that has a smallpercentage of lives in the defined contribution market;
(B) one director who represents either an individual employee or employer; and
(C) one director who represents the Office of Consumer Health Services within theGovernor's Office of Economic Development;
(ii) one director representing the Public Employees Health Program with actuarialexperience, chosen by the director of the Public Employees Health Program; and
(iii) the commissioner, or a representative of the commissioner who is appointed by thecommissioner, and has actuarial experience.
(c) The commissioner, or a representative appointed by the commissioner, may vote onlyin the event of a tie vote.
(3) (a) Except as required by Subsection (3)(b), as terms of current board membersappointed by the governor expire, the governor shall appoint each new member or reappointedmember to a four-year term.
(b) Notwithstanding the requirements of Subsection (3)(a), the governor shall, at the timeof appointment or reappointment, adjust the length of terms to ensure that the terms of boardmembers are staggered so that approximately half of the board is appointed every two years.
(4) When a vacancy occurs in the membership for any reason, the replacement shall beappointed for the unexpired term in the same manner as the original appointment was made.
(5) (a) Members who are not government employees shall receive no compensation orbenefits for the members' services.
(b) A state government member who is a member because of the member's stategovernment position may not receive per diem or expenses for the member's service.
(6) The board shall elect annually a chair and vice chair from its membership.
(7) Six board members are a quorum for the transaction of business.
(8) The action of a majority of the members of the quorum is the action of the board.
(9) The commissioner may designate an executive secretary from the department toprovide administrative assistance to the board in carrying out its responsibilities.
(10) (a) The Utah Statewide Risk Adjuster operates under the direction of the board inaccordance with rules adopted by the commissioner under Section 31A-42a-204.
(b) The budget for operation of the Utah Statewide Risk Adjuster is subject to theapproval of the board.
Enacted by Chapter 68, 2010 General Session