At the time the initial application for coverage is taken with respect to new applicants and upon the first renewal, reinstatement or extension of coverage following the effective date of this act with respect to persons previously covered, each association described in subsections (a), (b), (c), (d) and (e) of K.S.A. 40-2222, and amendments thereto, shall provide a written notice stating that:

1. (a) The coverage is not provided by an insurance company;
2. (b) the plan is not subject to the laws and regulations relating to insurance companies;
3. (c) the plan is not under the jurisdiction of the commissioner of insurance; and
4. (d) if the plan does not pay medical expenses that are eligible for payment under the plan for any reason, the individuals covered by the plan may be liable for such expenses.

L. 1991, ch. 135, § 2; May 2.