Utah § 31A-8-211 Deposit.

Utah Statutes

§ 31A-8-211 — Deposit.

Utah·Title 31A Insurance Code·Ch. 31A-8 Health Maintenance Organizations and Limited Health Plans·Part 31A-8-2 Domestic Organizations

(1)Except as provided in Subsection (2), each health maintenance organization authorized in this state shall maintain a deposit with the commissioner under Section 31A-2-206 in an amount equal to the sum of:

(1)(a) $100,000; and

(1)(b) 50% of the greater of:

(1)(b)(i) $900,000;

(1)(b)(ii) 2% of the annual premium revenues as reported on the most recent annual financial statement filed with the commissioner; or

(1)(b)(iii) an amount equal to the sum of three months uncovered health care expenditures as reported on the most recent financial statement filed with the commissioner.

(2)(2)(a) The commissioner may exempt a health maintenance organization from the deposit requirement of Subsection (1) if:

(2)(a)(i) the commissioner determines that the enrollees' interests are adequately protect

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(1) Except as provided in Subsection (2), each health maintenance organization authorized in this state shall maintain a deposit with the commissioner under Section 31A-2-206 in an amount equal to the sum of:

(1)(a) $100,000; and
(1)(b) 50% of the greater of:
(1)(b)(i) $900,000;
(1)(b)(ii) 2% of the annual premium revenues as reported on the most recent annual financial statement filed with the commissioner; or
(1)(b)(iii) an amount equal to the sum of three months uncovered health care expenditures as reported on the most recent financial statement filed with the commissioner.
(2) (2)(a) The commissioner may exempt a health maintenance organization from the deposit requirement of Subsection (1) if:
(2)(a)(i) the commissioner determines that the enrollees' interests are adequately protected;
(2)(a)(ii) the health maintenance organization has been continuously authorized to do business in this state for at least five years; and
(2)(a)(iii) the health maintenance organization has $5,000,000 surplus in excess of the health maintenance organization's company action level RBC as defined in Subsection 31A-17-601(8)(b).
(2)(b) The commissioner may rescind an exemption given under Subsection (2)(a).
(3) (3)(a) Each limited health plan authorized in this state shall maintain a deposit with the commissioner under Section 31A-2-206 in an amount equal to the minimum capital or permanent surplus plus 50% of the greater of:
(3)(a)(i) .5 times minimum required capital or minimum permanent surplus; or
(3)(a)(ii) (3)(a)(ii)(A) during the first year of operation, 10% of the limited health plan's projected uncovered expenditures for the first year of operation;
(3)(a)(ii)(B) during the second year of operation, 12% of the limited health plan's projected uncovered expenditures for the second year of operation;
(3)(a)(ii)(C) during the third year of operation, 14% of the limited health plan's projected uncovered expenditures for the third year of operation;
(3)(a)(ii)(D) during the fourth year of operation, 18% of the limited health plan's projected uncovered expenditures during the fourth year of operation; or
(3)(a)(ii)(E) during the fifth year of operation, and during all subsequent years, 20% of the limited health plan's projected uncovered expenditures for the previous 12 months.
(3)(b) Projections of future uncovered expenditures shall be established in a manner that is approved by the commissioner.
(4) A deposit required by this section may be counted toward the minimum capital or minimum permanent surplus required under Section 31A-8-209.