62D.042 INITIAL NET WORTH REQUIREMENT.
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62D.042 INITIAL NET WORTH REQUIREMENT.
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Subdivision 1. Definition.
For purposes of this section, if a health maintenance organization offers supplemental benefits as described in section 62D.05, subdivision 6 , "expenses" does not include any expenses attributable to the supplemental benefit.
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Subd. 2. Initial net worth requirement.
Beginning organizations shall maintain net worth of at least 8-1/3 percent of the sum of all expenses expected to be incurred in the 12 months following the date the certificate of authority is granted, or $1,500,000, whichever is greater.
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Subd. 3.
[Repealed, 1998 c 407 art 8 s 14 ]
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Subd. 4. Reduction for reinsurance.
In calculating expenses for purposes of the net worth requirement, a health maintenance organization may subtract 90 percent of the cost of premiums it pays for insurance coverage specified in section 62D.04, subdivision 1 , clause (f).
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Subd. 5.
[Repealed, 2004 c 285 art 3 s 11 ]
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Subd. 6.
[Repealed, 2004 c 285 art 3 s 11 ]
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Subd. 7.
[Repealed, 2004 c 285 art 3 s 11 ]