354.710. Reserve requirements--reserve not required for prepaid dental plans funded by government--surplus requirement for prepaid dental plans in existence January 1, 1987, additional time.

MISSOURI STATUTES AND CODES

354.710. Reserve requirements--reserve not required for prepaid dental plans funded by government--surplus requirement for prepaid dental plans in existence January 1, 1987, additional time.

Reserve requirements--reserve not required for prepaid dental plansfunded by government--surplus requirement for prepaid dental plans inexistence January 1, 1987, additional time.

354.710. 1. Every prepaid dental plan organization shall, not laterthan January 1, 1994, have accumulated reserves in the amount of twopercent of its subscription income up to a maximum amount of one hundredfifty thousand dollars. One-third of such reserves shall be accumulatednot later than January 1, 1990. Two-thirds of such reserves shall beaccumulated not later than January 1, 1992. Such reserves shall constituterestricted surplus on the books of the company and shall be in addition tothe deposit requirement of section 354.707. A prepaid dental planorganization shall maintain as a claim or loss reserve in cash orsecurities, assets sufficient to discharge all liabilities on all uncoveredexpenses arising under policies issued. Such liabilities on uncoveredexpenses shall be determined in accordance with generally acceptedaccounting principles for the actual contractual obligations with providersand shall not be recorded as unearned premium or deferred revenue.

2. The reserve prescribed by subsection 1 of this section shall notapply with respect to a prepaid dental plan corporation which is funded bya federal, state, or municipal government or by any political subdivisionthereof and which meets the requirements of subdivision (4) of subsection 2of section 354.707.

3. Any prepaid dental plan in existence prior to January 1, 1987,will have five years to meet the surplus requirements of subsection 1 ofsection 354.707. However, at no time shall the liabilities of a prepaidplan exceed its assets.

4. The reserve prescribed by subsection 1 of this section, and thefidelity bond prescribed by section 354.705, shall not be required of anyprepaid dental plan operated and offered by any provider prior to August28, 1987, which primarily serves low-income patients.