28 CA ADC § 1300.76.1
28 CCR s 1300.76.1
Cal. Admin. Code tit. 28, s 1300.76.1
CALIFORNIA CODE OF REGULATIONS
TITLE 28. MANAGED HEALTH CARE
DIVISION 1. THE DEPARTMENT OF MANAGED HEALTH CARE
CHAPTER 2. HEALTH CARE SERVICE PLANS
ARTICLE 9. FINANCIAL RESPONSIBILITY
RISK-BEARING ORGANIZATIONS
This database is current through 06/09/06, Register 2006, No. 23.
s 1300.76.1. Deposits.
(a) Except as provided in subsection (b) or (c), each plan licensed
pursuant to the provisions of the Act shall deposit with the Director or
at the discretion of the Director with any bank authorized to do business
in this state and insured by the Federal Deposit Insurance Corporation, or
savings and loan association doing business in this state and insured by
the Savings Association Insurance Fund, an amount which at all times shall
have a value of not less than $300,000, except for plans which only offer
specialized health care service contracts, which shall deposit an amount
which at all times shall have a value of not less than $50,000. Cash,
investment certificates, accounts, or any combination of these shall be
assigned to the Director, upon those terms as the Director may prescribed,
until released by the Director.
(b) Each plan licensed pursuant to the provisions of the Act prior to the
effective date of this section, except any plan which only offers
specialized health care services contracts, shall make a deposit of 50
percent of the amount required by subsection (a) within 12 months of the
effective date of this section and 100 percent of the amount required by
subsection (a) within 24 months of the effective date of this section.
(c) Each plan licensed pursuant to the provisions of the Act prior to the
effective date of this section which only offers specialized health care
service contracts shall make a deposit of 40 percent of the amount
required by subsection (a) within 12 months of the effective date of this
section, 70 percent of the amount required by subsection (a) within 24
months of the effective date of this section and 100 percent of the amount
required by subsection (a) within 36 months of the effective date of this
section.
(d) The Director may extend the time periods noted in subsection (c) if
the Director determines that such extension is in the best interests of
the plan and its enrollees and if it will not cause the plan to be
operated in a manner that may be hazardous to its enrollees.
(e) The deposit required by subsection (a) shall be an allowable asset of
the plan in the determination of tangible net equity and all income from
the deposit shall be an asset of the plan.
(f) A plan that has made a deposit pursuant to subsection (a) may withdraw
that deposit or any part thereof, after making a substitute deposit of
cash, investment certificates, accounts or any combination of these. Any
substitute deposit shall be approved by the Director before being
deposited or substituted.
(g) The deposits shall be used to protect the interests of the plan's
enrollees and to assure continuation of health care services to enrollees
of a plan whenever the Director has brought actions pursuant to sections
1386, 1392, 1393 or 1394.1. The Director may use the deposit for
administrative costs directly attributable to a conservatorship,
receivership or liquidation.
Note: Authority cited: Section 1344, Health & Safety Code. Reference:
Section 1376, Health & Safety Code.
HISTORY
1. New section filed 12-14-90; operative 12-31-90 (Register 91, No. 6).
2. Editorial correction of printing error (Register 91, No. 17).
3. Change without regulatory effect amending section filed 7-18-2000
pursuant
to section 100, title 1, California Code of Regulations (Register 2000,
No. 29).
28 CA ADC s 1300.76.1
END OF DOCUMENT
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