38.2-4213 - Liability of participating providers upon merger of nonstock corporation. - Virginia Statutes

§ 38.2-4213. Liability of participating providers upon merger of nonstockcorporation.

If two or more nonstock corporations merge, §§ 38.2-4210 and 38.2-4211 shallnot apply to the new or surviving nonstock corporation, its plans or itsproviders unless the nonstock corporations to be merged notify the Commissionin writing at least thirty days prior to the date of the merger that the newor surviving nonstock corporation will remain subject to §§ 38.2-4210 and38.2-4211. If notice is not given, the Commission may (i) require the new orsurviving nonstock corporation to maintain its contingency reserves aboveminimum level, (ii) subject it, notwithstanding the provisions of §38.2-1700, to the requirements of Chapter 17 of this title or (iii) both. Theminimum level of contingency reserves shall not exceed thirty days ofanticipated operating expenses and claims receipts computed as the Commissionrequires. If the nonstock corporation elects not to file the notice permittedby this section, the nonstock corporation and not its providers shall beliable for the obligations of the plan.

(Code 1950, § 32-195.5:1; 1972, c. 429, § 38.1-816; 1974, c. 54; 1979, c.721; 1980, c. 682; 1982, c. 129; 1985, c. 233; 1986, c. 562.)