§ 2002 — Issuance of certificate of authority

(a) Issuance of a certificate of authority shall be granted if the following conditions are met: (1) The requirements of subsection (c) of Section 2001 have been fulfilled. (2) The persons responsible for conducting the applicant's affairs are competent and trustworthy, possess good reputations and have had appropriate experience, training or education. (3) The applicant has demonstrated the willingness and potential ability to assure that such limited health service will be provided in a manner to insure both availability and accessibility of adequate personnel and facilities and in a manner enhancing availability, accessibility, and continuity of service. (4) The applicant has arrangements for an ongoing quality of health care assessment program concerning health care processes and outcomes. (5) The applicant is financially responsible and may reasonably be expected to meet its obligations to enrollees and to prospective enrollees. In making this determination, the Director shall consider: (A) the financial soundness of the applicant's arrangements for limited health services and the minimum standard rates, copayments and other patient charges used in connection therewith. (B) the adequacy of working capital, other sources of funding, and provisions for contingencies. (6) The limited health care plan furnishes limited health services on a prepaid basis, through insurance or otherwise, except to the extent of reasonable requirements for copayments of a fixed amount. (7) The agreements with providers for the provision of limited health services contain the provisions required by Section 2008 of this Act. (8) Any deficiencies identified by the Director have been corrected. (b) No certificate of authority shall be issued if the initial minimum net worth of the applicant is less than $100,000. The initial net worth shall be provided in cash and securities in combination and form acceptable to the Director.

Legislative History

(Source: P.A. 86-600.)