§ 27-13-24-2 — Deficient net worth

(a) If the commissioner finds that the net
worth maintained by a health maintenance organization subject to this
article is less than the minimum net worth required by IC 27-13-12, the
commissioner shall:
(1) give written notice to the health maintenance organization of
the amount of the deficiency; and
(2) require the health maintenance organization to:
(A) file with the commissioner a plan for correction of the
deficiency that is acceptable to the commissioner; and
(B) correct the deficiency within a reasonable time, not to
exceed sixty (60) days, unless an extension of time, not to
exceed an additional sixty (60) days, is granted by the
commissioner.
(b) A deficiency described in subsection (a) is an impairment, and
the failure of a health maintenance organization to correct the
impairment in the time prescribed by the commissioner under
subsection (a) is grounds for:
(1) the suspension or revocation of the certificate of authority of
the organization; or
(2) placing the health maintenance organization in rehabilitation
or liquidation.

Legislative History

As added by P.L.26-1994, SEC.25.