20-1722. Deposit; surplus requirements

191 words·~1 min read·/az/title-20/20-1722

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

A. Until October 1, 1985, the provisions of subsection A of section 20-260 shall not apply to primary coverage issued by health care insurers established pursuant to this article.

B. A health care insurance company established pursuant to the provisions of this article shall maintain three hundred thousand dollars as a statutory deposit pursuant to section 20-213 and such deposit shall be held by the state treasurer in accordance with the provisions of chapter 3, article 3 of this title.

C. In addition to the statutory deposit required in subsection B, a health care insurance company shall maintain additional surplus funds in the following amounts:

1. Seven hundred thousand dollars throughout the first year of operation,

2. One million seven hundred thousand dollars throughout the second year of operation, and

3. Two million seven hundred thousand dollars throughout the third year of operation and each subsequent year of operation.

D. The director shall not issue a certificate of authority to an insurer established pursuant to this article until the deposit requirement specified in subsection B and the surplus requirement specified in subsection C for the first year of operation are satisfied.