KRS 304.17A-760: Duties and powers of insurance purchasing outlet.

(1) An insurance purchasing outlet shall:

(a) Set and collect fees to finance necessary costs incurred in marketing, selling,

servicing, and administering its services;

(b) Offer health benefit plans to eligible persons;

(c) Provide premium and voucher collection services for participating insurers;

(d) Establish and adhere to appropriate administrative and accounting procedures

for operating the health purchasing outlet;

(e) Establish and adhere to rules, conditions, and procedures for insurance

purchasing outlet members and participating insurers;

(f) Establish and adhere to enrollment and participation requirements for

insurance purchasing outlet members;

(g) Receive, review, and conduct appeals for persons who have been denied

enrollment to an insurance purchasing outlet;

(h) Demonstrate and maintain at all times proof of financial responsibility and

solvency;

(i) Prepare an annual report on the operations of the insurance purchasing outlet

in accordance with administrative regulations promulgated by the

commissioner;

(j) Establish procedures for billing and collection of premiums from insurance

purchasing outlet members;

(k) Establish procedures for collecting and redeeming vouchers; and

(l) Maintain an administrator license in accordance with Subtitle 9 of C hapter

304.

(2) An insurance purchasing outlet may:

(a) Contract with qualified third parties for any services necessary to carry out the

powers and duties authorized or required by this chapter;

(b) Employ necessary staff;

(c) Sue or be sued;

(d) Contract with independent licensed administrators to adjust or settle claims,

since the insurance purchasing outlet is prohibited from these activities in

accordance with KRS 304.17A-758; and

(e) Employ, contract, or otherwise use licensed insurance agents to market and

service coverage.