500.3553 Certificate of authority; deposit requirements.
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500.3553 Certificate of authority; deposit requirements.
Sec. 3553.
(1)To obtain or maintain a certificate of authority in this state, a health maintenance organization shall possess and maintain a deposit in an amount determined adequate by the director to continue to comply with section 403 but not less than $100,000.00 plus 5% of annual subscription revenue up to a $1,000,000.00 maximum deposit.
(2)A health maintenance organization shall make the deposit required under subsection
(1)with the state treasurer or with a federal or state chartered financial institution under a trust indenture acceptable to the director for the sole benefit of the subscribers and enrollees in case of insolvency.
History: Add. 2000, Act 252 , Imd. Eff. June 29, 2000 ;-- Am. 2016, Act 276 , Imd. Eff. July 1, 2016
Popular Name: Act 218
Popular Name: HMO