Insolvent member, board may determine, how
This law is about what happens when a business that is part of a workers' compensation group might be running out of money. The group's board of directors and a state office called the division of workers' compensation work together to watch for businesses that are in bad financial shape. The board can ask the division to check on a business, and the division has to report back within 30 days. Both the board and the division share information with each other to try to catch and prevent money problems before workers get hurt.
287.877. member, may determine, how — notice to , when. — 1. Upon by majority vote that any may be insolvent or in a financial condition hazardous to the employees thereof or to the public, it shall be the duty of the to notify the of any indicating such condition.
2. The board of directors may, upon majority vote, request that the division determine the condition of any member employer which the board believes may no longer be qualified to be a member of the . Within thirty days of the receipt of such request or, for , within a reasonable time thereafter, the division shall make such determination and shall advise the board of its findings. Each request for a determination shall be kept on file by the division, but the request shall not be open to public inspection prior to the of the determination to the public.
3. It shall also be the duty of the division to report to the board of directors when it has reasonable cause to believe that a member employer may be in such a financial condition as to be no longer qualified to be a member of the corporation.
4. The board of directors may, upon majority vote, make reports and recommendations to the division upon any matter which is to the , , , or of any member employer. Such reports and recommendations shall not be considered public documents.
5. The board of directors may, upon majority vote, make recommendations to the division for the detection and prevention of employer insolvencies.
6. The board of directors shall, at the conclusion of any member employer's in which the corporation was to pay , prepare a report on the history and cause of such insolvency, based on the information available to the corporation, and shall submit such report to the division.
7. Both the board and the division shall, under the , section 287.870, and any applicable , establish further recommendations as the occasion suggests.
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Source & history notes
(L. 1992 H.B. 975)
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