§ 123210. — 123210. (Added by Stats. 1995, Ch. 415, Sec. 8.)

(a)
The term of any contract entered into pursuant to subdivision (a) of Section 123185 shall be determined by the director, but shall not exceed three years.
(b)
The contract shall contain a provision authorizing the director to terminate the contract upon giving 60 days’ written notice to the insurer of any of the following causes for termination:
(1)
The department has determined that management practices of the insurer or the current financial condition of the insurer interferes with the efficient and timely payment of catastrophic health insurance benefits.
(2)
Continuing failure of the insurer to timely pay the benefits of its policies of catastrophic health insurance or provide catastrophic health insurance services in accordance with the contract.
(3)
Other continuing unsatisfactory performance by the insurer under the contract, based upon complaints received from insureds or other sources, if the insurer has failed to take reasonable, effective, and prompt actions to resolve the complaints.
(c)
The contract shall contain a provision authorizing the director to terminate the contract without cause upon any annual anniversary date of the contract by giving at least 60 days’ notice to the insurer.
(d)
The director may give up to 120 days’ notice to terminate if it is determined to be in the best interest of plan participants.
(e)
The director shall annually certify that participating providers meet the conditions of the program. In carrying out this requirement, the director shall consult with the Department of Insurance to obtain any audits performed by those agencies that may be used in evaluating the performance of each provider.

Legislative History

Added by Stats. 1995, Ch. 415, Sec. 8. Effective January 1, 1996.