(a)

(1) If any participating state agency or school district does not remit insurance premiums and required monthly reports to the Employee Benefits Division of the Department of Finance and Administration by the last calendar day of each billing month, the division shall impose a penalty of two dollars ($2.00) per insured member or one hundred dollars ($100), whichever is greater.

(2)

(A) Penalties shall be assessed and invoiced based on the actual number of members included on the monthly billing report that is past due.

(B) Invoices shall be processed at the beginning of the month following the infraction.

(3) Penalties are payable to the division and shall be delivered to the division no later than the last calendar day of the month following invoicing.

(4) If payment is not delivered to the division by the due date, the following collection methods may be used:

(A) (i) The Chief Fiscal Officer of the State may cause the amount sought to be transferred to the division from:

(a) Funds the state agency or school district has on deposit with the Treasurer of State; or

(b) Any funds the state agency or school district is due from the state.

(ii) If a transfer is made, a transfer penalty of twenty dollars ($20.00) per transfer shall be assessed each state agency or school district fund and included in the transfer;

(B) The state agency director or school district superintendent may be required to appear before the State and Public School Life and Health Insurance Board to report the reasons for nonpayment or incorrect reporting; and

(C) The Chief Fiscal Officer of the State may use his or her powers outlined in § 19-4-301 et seq. to aid in collection.

(5) Nonpayment of premiums by a school district, state agency, or agency assuming the responsibility for paying health and life insurance premiums for its employees may result in a lapse of health and life insurance coverage for participating state employees and public school employees of the school district or state agency.

(b) (1) If a participating entity or participating institution fails to follow established policy and procedures set by the Executive Director of the Employee Benefits Division of the Department of Finance and Administration, including without limitation notifying the division of an insured's leave without pay, family medical leave, or military leave status or if any participating entity or participating institution provides incorrect benefit information or processes unauthorized benefit changes, including system entries that result in unreimbursed expenses to the State Employees Benefit Trust Fund or Public School Insurance Trust Fund, the division may:

(A) Require the participating entity or participating institution to pay the total amount of the insured's premium; and

(B) Impose a penalty of fifty dollars ($50.00) per insured.

(2)

(A) Penalties shall be assessed and invoiced based on the actual number of violations.

(B) Invoices shall be processed at the beginning of the month following discovery of the infraction.

(3) Penalties are payable to the division and shall be delivered to the division by the last calendar day of the month following invoicing.

(4) The Chief Fiscal Officer of the State may cause the amount sought to be transferred from:

(A) Funds the state agency or school district has on deposit with the Treasurer of State; or

(B) Any funds the state agency or school district is due from the state.

(5) If a transfer is made, a transfer penalty of twenty dollars ($20.00) per transfer shall be assessed each state agency or school district fund and included in the transfer.

(c) The division may correct any error regarding an insured's benefits according to existing documentation without authorization or prior notification to the state agency or school district.