Sec. 2006. Statutory deposits.

349 words·~2 min read·/il/chapter-215/act-130/2006

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

(a)An organization subject to the provisions of this Act shall make and maintain with the Director, for the protection of enrollees of the organization, a deposit of securities that are in the form authorized under Section 2-6 of the Health Maintenance Organization Act having a fair market value equal to the minimum net worth required under subsection

(a)of Section 2004. The amount on deposit shall remain as an admitted asset of the organization in the determination of its net worth. The Director may release the required deposit of securities required by this Section upon receipt of an order of a court having proper jurisdiction or upon:

(i)certification by the organization that it has no outstanding enrollee creditors, enrollees, certificate holders, or enrollee obligations in effect and no plans to engage in the business of insurance as a limited health service organization;

(ii)receipt of a lawful resolution of the organization's governing body effecting the surrender of its certificate of authority, articles of incorporation, or other organizational documents to their issuing governmental officer for voluntary or administrative dissolution; and

(iii)receipt of the name and forwarding address for each of the final officers and directors of the organization, together with a plan of dissolution approved by the Director.

(b)An LHSO that offers a POS contract shall, in addition to the deposit required by subsection (a), deposit and maintain with the Director cash or securities that are authorized investments under Section 1003 having a fair market value equal to the greater of:

(1)$50,000 if the LHSO's expenditures for out-of-plan covered services do not exceed

10% of its total limited health expenditures in any calendar quarter; or

(2)$100,000 if the LHSO's expenditures for out-of-plan covered services exceeds 10% but

are less than 20% of its total limited health services expenditure in any calendar quarter; or

(3)120% of its current actual monthly out-of-plan covered service claims expense plus

incurred but not reported balances for out-of-plan covered services.

(c)The combined deposit amount required in subsections

(a)and

(b)shall not exceed $200,000.