31A-42-201. Creation of defined contribution market risk adjuster mechanism --
Board of directors -- Appointment -- Terms -- Quorum -- Plan preparation.
(1) There is created the "Utah Defined Contribution Risk Adjuster," a nonprofit entity
within the Insurance Department.
(2) (a) The risk adjuster shall be under the direction of a board of directors composed of
up to nine members described in Subsection (2)(b).
(b) The following directors shall be appointed by the governor with the consent of the
Senate:
(i) at least three, but up to five directors with actuarial experience who represent
insurance carriers:
(A) that are participating or have committed to participate in the defined contribution
arrangement market in the state; and
(B) including at least one and up to two directors who represent a carrier that has a small
percentage of lives in the defined contribution market;
(ii) one director who represents either an individual employee or employer participant in
the defined contribution market;
(iii) one director appointed by the governor to represent the Office of Consumer Health
Services within the Governor's Office of Economic Development;
(iv) one director representing the Public Employee's Health Benefit Program with
actuarial experience, chosen by the director of the Public Employee's Health Benefit Program
who shall serve as an ex officio member; and
(v) the commissioner or a representative from the department with actuarial experience
appointed by the commissioner, who will only have voting privileges in the event of a tie vote.
(3) (a) Except as required by Subsection (3)(b), as terms of current board members
appointed by the governor expire, the governor shall appoint each new member or reappointed
member to a four-year term.
(b) Notwithstanding the requirements of Subsection (3)(a), the governor shall, at the time
of appointment or reappointment, adjust the length of terms to ensure that the terms of board
members are staggered so that approximately half of the board is appointed every two years.
(4) When a vacancy occurs in the membership for any reason, the replacement shall be
appointed for the unexpired term in the same manner as the original appointment was made.
(5) (a) Members who are not government employees shall receive no compensation or
benefits for the members' services.
(b) A state government member who is a member because of the member's state
government position may not receive per diem or expenses for the member's service.
(6) The board shall elect annually a chair and vice chair from its membership.
(7) Six board members are a quorum for the transaction of business.
(8) The action of a majority of the members of the quorum is the action of the board.
Enacted by Chapter 12, 2009 General Session
Download Code Section Zipped WordPerfect 31A42_020100.ZIP 3,092 Bytes
Sections in this Chapter|Chapters in this Title|All Titles|Legislative Home Page
Last revised: Thursday, May 28, 2009