§ 27-13-34-17 — Required deposit

Indiana § 27-13-34-17

• Jurisdiction: Indiana
• Title 27: INSURANCE
• Art. 13: HEALTH MAINTENANCE ORGANIZATIONS
• Ch. 34: Limited Service Health Maintenance Organizations

Text

(a) Each limited service health maintenance
organization shall deposit in a joint-name account with:
(1) the commissioner; or
(2) any bank or bank and trust company or other financial
institution acceptable to the commissioner through which a
custodial or controlled account is used;
cash, securities acceptable to the commissioner, or any combination of
these, in an amount equal to fifty thousand dollars ($50,000).
(b) For the purposes of section 16 of this chapter:
(1) a deposit made by an organization under this section shall be
treated as an admitted asset of the organization in the
determination of net worth; and
(2) all income from deposits of an organization under this section
shall be an asset of the organization.
(c) An organization may withdraw:
(1) a deposit made under this section; or
(2) any part of the deposit;
after making a substitute deposit of equal amount and value.
(d) Any obligations of the United States government deposited with
the commissioner under this section must be approved by the
commissioner before being substituted under subsection (c).
(e) The deposit made by a limited service health maintenance
organization under this section shall be used to protect the interest of
the enrollees of the organization and to assure continuation of limited
health care services to enrollees of a limited service health maintenance
organization that is in rehabilitation or conservation.
(f) If a limited service health maintenance organization is placed in
rehabilitation or liquidation, the deposit made by the organization
under this section shall be an asset subject to IC 27-9.
(g) The commissioner is not required to but may reduce or eliminate
the deposit requirement of this section for a limited service health
maintenance organization if the organization:
(1) has made an acceptable deposit with the state or jurisdiction
in which the organization is domiciled for the protection of all
enrollees, wherever located; and
(2) delivers to the commissioner a certificate to that effect,
authenticated by the appropriate state official holding the deposit.

Legislative History

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