§ 27-41-18.1 - Summary orders and supervision.
SECTION 27-41-18.1
§ 27-41-18.1 Summary orders andsupervision. – (a) Whenever the director determines that the financial condition of a healthmaintenance organization is such that its continued operation must be hazardousto its enrollees, creditors, or the general public, or that it has violated anyprovision of this act, the director may, after notice and hearing, order thehealth maintenance organization to take action reasonably necessary to rectifythe condition or violation, including, but not limited to, one or more of thefollowing:
(1) Reduce the total amount of present and potentialliability for benefits by reinsurance or other method acceptable to thedirector;
(2) Reduce the volume of new business being accepted;
(3) Reduce expenses by specified methods;
(4) Suspend or limit the writing of new business for a periodof time;
(5) Increase the health maintenance organization's capitaland surplus by contribution;
(6) Initiate administrative supervision proceedings againstthe health maintenance organization in accordance with chapter 14.1 of thistitle; or
(7) Take other steps the director may deem appropriate underthe circumstances.
(b) For purposes of this section, the violation by a healthmaintenance organization of any law of this state to which the healthmaintenance organization is subject shall be deemed a violation of this act.
(c) The director is authorized to adopt regulations to setuniform standards and criteria for early warning that the continued operationof any health maintenance organization might be hazardous to its enrollees,creditors, or the general public and to set standards for evaluating thefinancial condition of any health maintenance organization.
(d) The remedies and measures available to the director underthis section shall be in addition to, and not in lieu of, the remedies andmeasures available to the director under the provisions of chapters 14.1, 14.2and 14.3 of this title.