§ 27-74-6. Surety bond or deposit requirements.
(a) Each registered discount medical plan organization shall maintain in force a surety
bond in its own name in an amount not less than fifty thousand dollars ($50,000) to
be used in the discretion of the commissioner to protect the financial interest of
members, including, but not limited to, making refunds of fees and costs to consumers
if the registered discount medical plan organization's registration is revoked. The
bond shall be issued by an insurance company licensed to do business in this state.
(b) In lieu of the bond specified in this section, a regi
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§ 27-74-6. Surety bond or deposit requirements.
(a) Each registered discount medical plan organization shall maintain in force a surety
bond in its own name in an amount not less than fifty thousand dollars ($50,000) to
be used in the discretion of the commissioner to protect the financial interest of
members, including, but not limited to, making refunds of fees and costs to consumers
if the registered discount medical plan organization's registration is revoked. The
bond shall be issued by an insurance company licensed to do business in this state.
(b) In lieu of the bond specified in this section, a registered discount medical plan
organization may deposit and maintain deposited with the commissioner, or at the discretion
of the commissioner, with any organization or trustee acceptable to the commissioner
through which a custodial or controlled account is utilized, cash, securities, or
any combination of these or other measures that are acceptable to the commissioner
with at all times have a market value of not less than fifty thousand dollars ($50,000).
(c) All income from a deposit made under this section shall be an asset of the discount
medical plan organization.
(d) Except for the commissioner, the assets or securities held in this state as a deposit
under this section shall not be subject to levy by a judgment creditor or other claimant
of the discount medical plan organization.