28 CA ADC § 1300.76.3


      28 CCR s 1300.76.3

      Cal. Admin. Code tit. 28, s 1300.76.3


      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 1300.76.3. Fidelity Bond.

      (a) Each plan shall at all times maintain a fidelity bond covering each 
      officer, director, trustee, partner and employee of the plan, whether or 
      not they are compensated. The fidelity bond may be either a primary 
      commercial blanket bond or a blanket position bond written by an insurer 
      licensed by the California Insurance Director, and it shall provide for 30 
      days' notice to the Director prior to cancellation. The fidelity bond 
      shall provide at least the minimum coverage for the plan determined by the 
      following schedule:


      Annual                    Minimum
      Gross Income              Coverage
      Up to $100,000            $10,000
      100,000 to $300,000       20,000
      300,000 to 500,000        30,000
      500,000 to 750,000        50,000
      750,000 to 1,000,000      75,000
      1,000,000 to 2,000,000    100,000
      2,000,000 to 4,000,000    200,000
      4,000,000 to 6,000,000    400,000
      6,000,000 to 10,000,000   600,000
      10,000,000 to 20,000,000  1,000,000
      20,000,000 and over       2,000,000

       
      (b) The fidelity bond required pursuant to subsection (a) may contain a 
      provision for a deductible amount from any loss which, except for such 
      deductible provision, would be recoverable from the insurer. A deductible 
      provision shall not be in excess of 10 percent of the required minimum 
      bond coverage, but in no event shall the deductible amount be in excess of 
      $100,000.


      


      Note: Authority cited: Section 1344, Health and Safety Code. Reference: 
      Section 1376, Health and Safety Code. 


       HISTORY 
         
      1. Editorial correction adding NOTE filed 12-8-82 (Register 82, No. 50).

      2. Change without regulatory effect amending subsection (a) filed 
7-18-2000
      pursuant to section 100, title 1, California Code of Regulations (Register
      2000, No. 29).
      28 CA ADC s 1300.76.3

      END OF DOCUMENT

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