31A-42-201 - Creation of risk adjuster mechanism -- Board of directors -- Appointment -- Terms -- Quorum -- Plan preparation.
31A-42-201. Creation of risk adjuster mechanism -- Board of directors --Appointment -- Terms -- Quorum -- Plan preparation.
(1) There is created the "Utah Defined Contribution Risk Adjuster," a nonprofit entitywithin the department.
(2) (a) The risk adjuster is under the direction of a board of directors composed of up tonine members 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 representinsurers:
(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 an insurer that has asmall percentage 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' Benefit and Insurance Program withactuarial experience, appointed by the director of the Public Employees' Benefit and InsuranceProgram; and
(iii) the commissioner, or a representative of the commissioner who:
(A) is appointed by the commissioner; and
(B) 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.
(c) Notwithstanding the requirements of Subsection (3)(a), a board member shallcontinue to serve until the board member is reappointed or replaced by another individual inaccordance with this section.
(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) A board member who is not a government employee may not receivecompensation or benefits for the board member's services.
(b) A state government member who is a board member because of the board member'sstate government 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) A majority of the board members is 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.
Amended by Chapter 10, 2010 General Session
Amended by Chapter 68, 2010 General Session