Section 500.3553 - Minimum deposit requirements.
THE INSURANCE CODE OF 1956 (EXCERPT)
Act 218 of 1956
500.3553 Minimum deposit requirements.
Sec. 3553.
(1) Minimum deposit requirements for a health maintenance organization shall be determined as provided under this section and using accounting procedures approved by the commissioner that ensure that a health maintenance organization is financially and actuarially sound.
(2) A health maintenance organization licensed under former part 210 of the public health code, 1978 PA 368, on the effective date of this chapter that automatically received a certificate of authority under section 3505(1) shall possess and maintain a deposit as required under former section 21034 of the public health code, 1978 PA 368, until the earlier of the following:
(a) The health maintenance organization attains the level of deposit as provided in subsection (3) at which time the health maintenance organization shall continue to maintain that level of deposit.
(b) December 31, 2001.
(3) A health maintenance organization applying for a certificate of authority on or after the effective date of this chapter and a health maintenance organization wishing to maintain a certificate of authority in this state after December 31, 2001 shall possess and maintain a deposit in an amount determined adequate by the commissioner to continue to comply with section 403 but not less than $100,000.00 plus 5% of annual subscription revenue up to a $1,000,000.00 maximum deposit.
(4) The deposit required under this section shall be made with the state treasurer or with a federal or state chartered financial institution under a trust indenture acceptable to the commissioner for the sole benefit of the subscribers and enrollees in case of insolvency.
History: Add. 2000, Act 252, Imd. Eff. June 29, 2000
Popular Name: Act 218
Popular Name: HMO