Arkansas Statutes

§ 23-76-111 — Fiduciary responsibilities of director, officer, or partner

Arkansas·Title 23
(a)Any director, officer, or partner of a health maintenance organization who receives, collects, disburses, or invests funds in connection with the activities of the health maintenance organization shall be responsible for the funds in a fiduciary relationship to the enrollees.
(b)A health maintenance organization shall maintain in force a fidelity bond or fidelity insurance on these employees, officers, directors, and partners in an amount not less than two hundred fifty thousand dollars ($250,000) for each health maintenance organization or a maximum of five million dollars ($5,000,000) in aggregate maintained on behalf of health maintenance organizations owned by a common parent corporation, or the sum prescribed by the Insurance Commissioner.

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Legislative History

Acts 1975, No. 454, § 7; A.S.A. 1947, § 66-5207; Acts 2001, No. 1605, § 4.

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