HRS §432D-4
Fiduciary duties for HMO money handlers
This section says people who handle money for a health maintenance organization (HMO) must act as trustees for that money. It also requires the HMO to buy a bond or insurance to protect against employee or officer dishonesty, in an amount set by the insurance commissioner.
businesses
The statute, as written — Fiduciary responsibilities
(a) Any director, officer, employee, or partner of a health maintenance organization who receives, collects, disburses, or invests funds in connection with the activities of an organization shall be responsible for the funds in a fiduciary relationship to the organization. (b) A health maintenance organization shall maintain in force a fidelity bond or fidelity insurance on such employees, officers, directors, and partners in an amount not less than $250,000 for each health maintenance organization or a maximum of $5,000,000 in aggregate maintained on behalf of health maintenance organizations owned by a common parent corporation, or such sum as may be prescribed by the commissioner.
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