Insolvency fund, created
When a workers' compensation group becomes unable to pay its bills, an 'Insolvency Fund' is set up to cover what that group owes. The fund only pays after all other money, bonds, deposits, and insurance are used up first. A state division can check the fund's finances every year and suggest changes to make sure the fund stays healthy and can keep paying claims.
287.867. , created — purposes, of. — 1. Upon the adoption of a , including, if applicable, the adoption of rules or regulations by the section 287.870, there shall be created an "Insolvency Fund" to be managed by the .
2. The insolvency fund is created for purposes of meeting the obligations of members incurred while members of the corporation and after the exhaustion of all including any bonds, , insurance or , as required under this chapter. A method of operation of the insolvency fund shall be defined in the plan of operation as provided in section 287.870 or applicable pertaining to it.
3. The shall have the to audit the financial soundness of the insolvency fund annually.
4. The division may recommend certain amendments to the plan of operation to the of the corporation for purposes of assuring the ongoing financial soundness of the insolvency fund and its ability to meet the obligations of sections 287.860 to 287.885.
5. An on behalf of the division or other division personnel may make recommendations, from time to time, to improve the orderly payment of .
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Source & history notes
(L. 1992 H.B. 975)
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