Section 500.3559 - Reinsurance contract or plan; purpose; filing; approval; coverage. - Michigan Statutes

THE INSURANCE CODE OF 1956 (EXCERPT)
Act 218 of 1956

500.3559 Reinsurance contract or plan; purpose; filing; approval; coverage.

Sec. 3559.

(1) Subject to subsection (2), a health maintenance organization shall obtain a reinsurance contract or establish a plan of self-insurance as may be necessary to ensure solvency or to protect subscribers in the event of insolvency. A reinsurance contract shall be with an insurer that is authorized or eligible to transact insurance in Michigan.

(2) A reinsurance contract or plan under subsection (1) shall be filed for approval with the commissioner not later than 30 days after the finalization of the contract or plan. A reinsurance contract or plan shall clearly state all services to be received by the health maintenance organization. A reinsurance contract or plan shall be considered approved 30 days after it is filed with the commissioner unless disapproved in writing by the commissioner before the expiration of those 30 days.

(3) A health maintenance organization shall maintain insurance coverage to protect the health maintenance organization that includes, at a minimum, fire, theft, fidelity, general liability, errors and omissions, director's and officer's liability coverage, and malpractice insurance. A health maintenance organization shall obtain the commissioner's prior approval before self-insuring for these coverages.

History: Add. 2000, Act 252, Imd. Eff. June 29, 2000
Popular Name: Act 218
Popular Name: HMO