§ 26.1-18.1-20 — Rehabilitation, liquidation, or conservation of health maintenance organizations

North Dakota § 26.1-18.1-20

• Jurisdiction: North Dakota
• Title 26.1: Insurance
• Ch. 26.1-18.1: Health Maintenance Organizations

Text

organizations.
1. Any rehabilitation, liquidation, or conservation of a health maintenance organization
must be deemed to be the rehabilitation, liquidation, or conservation of an insurance
company and must be conducted under the supervision of the commissioner pursuant
to the law governing the rehabilitation, liquidation, or conservation of insurance
companies. The commissioner may apply for an order directing the commissioner to
rehabilitate, liquidate, or conserve a health maintenance organization upon any one or
more grounds set out in chapter 26.1-06; or when in the commissioner's opinion the
continued operation of the health maintenance organization would be hazardous either
to the enrollees or to the people of this state. Enrollees have the same priority in the
event of liquidation or rehabilitation as the law provides to policyholders of an insurer.
2. For purposes of determining the priority of distribution of general assets, claims of
enrollees and enrollees' beneficiaries have the same priority as established by chapter
26.1-06.1 for policyholders and beneficiaries of insureds of insurance companies. If an
enrollee is liable to any provider for services provided pursuant to and covered by the
health care plan, that liability has the status of an enrollee claim for distribution of
general assets. Any provider who is obligated by statute or agreement to hold
enrollees harmless from liability for services provided pursuant to and covered by a
health care plan has a priority of distribution of the general assets immediately

following that of enrollees and enrollees' beneficiaries as described herein, and
immediately preceding the priority of distribution described in chapter 26.1-06.1.