West Virginia Code § 33-25A-7

Fiduciary responsibilities of officers; fidelity bond; approval of contracts
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by commissioner.
(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 organization is
responsible for the funds in a fiduciary relationship to the enrollees.
(b) A health maintenance organization shall maintain a blanket fidelity bond covering all
directors, officers, managers and employees of the organization who receive, collect,
disburse or invest funds in connection with the activities of the organization, issued by an
insurer licensed in this state or, if the fidelity bond required by tuhis subsection is not
available from an insurer licensed in this state, a fidelity bond procured by an excess line
broker licensed in this state, in an amount at least equal to tthe minimum amount of fidelity
insurance as provided in the national association of Insurance Commissioners handbook, as
amended, or as determined under a rule promulgated by the commissioner.
(c) Any contracts made with providers of health carle services enabling a health maintenance
organization to provide health care services asuthorized under this article shall be filed with
the commissioner. The commissioner has the power to require immediate cancellation of the
contracts or the immediate renegotiation of the contract by the parties whenever he or she
determines that they provide for excgessive payments, or that they fail to include reasonable
incentives for cost control, or that they otherwise substantially and unreasonably contribute
to escalation of the costs of preoviding health care services to enrollees.

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