§ 33-30-201 — Reserves -- Requirements Suspended

33-30-201 . Reserves -- requirements suspended. (1) The corporation shall maintain at all times unobligated funds adequate to:
(a) provide the hospital, medical-surgical, and other health services made available to its members and beneficiaries; and
(b) meet all costs and expenses.
(2) In addition, reserves of a health service corporation in cash, certificates of deposit, obligations issued or guaranteed by the government of the United States, or other assets approved by the commissioner must be maintained in an amount not less than:
(a) $500,000 or, if authorized under this chapter after October 1, 1999, $750,000; or
(b) an amount equal to 1 month's average income from dues or fees paid to the corporation by its members or beneficiaries, based on an average of the preceding 12 months, whichever is less.
(3) The determination of minimum reserves is subject, as to amounts payable to participating providers of the health services, to any right of the corporation to prorate the amounts under the terms of its health service contracts with providers.
(4) The commissioner may decrease or suspend the requirements of this section if the commissioner finds that the action is in the best interest of the members of the corporation.

Legislative History

En. 40-5905 by Sec. 5, Ch. 319, L. 1975; R.C.M. 1947, 40-5905; amd. Sec. 55, Ch. 472, L. 1999; amd. Sec. 30, Ch. 63, L. 2015.