44-7,119.

Self-funded health benefit plan; not considered insurance; when; certification; required; reinsurance; authorized.

(1) A health benefit plan is not insurance and except as provided in this section is not subject to any law regarding insurance if:

(a) The health benefit plan provides health benefits under a self-funded arrangement administered by an entity licensed as a third-party administrator under the Third-Party Administrator Act; and

(b) The health benefit plan is sponsored by a nonprofit agricultural organization or an affiliate of a nonprofit agricultural organization that:

(i) Is domiciled in this state;

(ii) Was created primarily to promote programs for the development of rural communities and the economic stability and sustainability of farmers in this state pursuant to its articles of incorporation;

(iii) Provides membership opportunities for eligible persons in each county of this state;

(iv) Collects annual dues from its members;

(v) Holds regular meetings to further the purposes of its members;

(vi) Provides its members with representation on its governing board and any committees of such board; and

(vii) Contracts with the third-party administrator described in subdivision (a) of this subsection for administration of the health benefit plan.

(2) Before providing health benefits under a self-funded plan, an organization shall file a certification with the Department of Insurance verifying that the organization meets the requirements of this section. Such certification shall be filed at a time and in a manner prescribed by the Department of Insurance.

(3) The risk assumed by a health benefit plan under health care benefit coverage under this section may be reinsured by a company authorized to do business in this state.

(4) Any health benefit plan application for coverage and any contract provided to a member shall prominently state the following:

(a) The health benefit plan is not insurance;

(b) The health benefit plan is not provided by an insurance company;

(c) The health benefit plan is not subject to the laws and rules governing insurance; and

(d) The health benefit plan is not subject to the jurisdiction of the Department of Insurance.