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 › Section 1300.76.1 - Deposits

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Except as
					 provided in subsection (b), 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 $150,000, or plans licensed as discount health plans, 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 which only offers specialized health care service
					 contracts shall make a deposit of two-thirds of the amount required by
					 subsection (a) within 6 months of the effective date of this section, and 100
					 percent of the amount required by subsection (a) within 12 months of the
					 effective date of this section.
(c)
					 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.
(d)
					 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.
(e) 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.
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).
4. Amendment of subsection (a),
						repealer of subsections (b) and (d), subsection relettering and amendment of
						newly designated subsection (b) filed 12-9-2015; operative 4-1-2016 (Register
						2015, No. 50).
Note: Authority cited: Section
						  1344, Health & Safety Code.
						  Reference: Section
						  1376, Health & Safety
						  Code.