§ 58-67-110. Protection against insolvency. - North Carolina Statutes

§ 58‑67‑110. Protection against insolvency.

(a)        The Commissionershall require deposits in accordance with the provisions of G.S. 58‑67‑25.

(b)        Each full servicehealth maintenance organization shall maintain a minimum net worth equal to thegreater of one million dollars ($1,000,000) or the amount required pursuant tothe risk‑based capital provisions of Article 12 of this Chapter. Eachsingle service health maintenance organization shall maintain a minimum networth equal to the greater of fifty thousand dollars ($50,000) or that amountrequired pursuant to the risk‑based capital provisions of Article 12 ofthis Chapter.

(c), (d) Repealed by SessionLaws 2003‑212, s. 21, effective October 1, 2003.

(e)        Every full servicemedical health maintenance organization shall have and maintain at all times anadequate plan for protection against insolvency acceptable to the Commissioner.In determining the adequacy of such a plan, the Commissioner may consider:

(1)        A reinsuranceagreement preapproved by the Commissioner covering excess loss, stop loss, orcatastrophes. The agreement must provide that the Commissioner will be notifiedno less than 60 days prior to cancellation or reduction of coverage.

(2)        A conversion policyor policies that will be offered by an insurer to the enrollees in the event ofthe health maintenance organization's insolvency.

(3)        Any otherarrangements offering protection against insolvency that the Commissioner mayrequire. (1987,c. 631, s. 5; 1989, c. 776, ss. 11, 12; 2003‑212, s. 21.)