28 Tex. Admin. Code § 11.802 - Minimum Net Worth
(a) An applicant for a
certificate of authority to operate an HMO must have unencumbered assets that
satisfy the requirements of Insurance Code §
843.403 (concerning
Minimum Net Worth).
(b) For the
purpose of calculating assets to satisfy the minimum net worth requirements of
Insurance Code §
843.403, lawful money
of the United States of America includes deposits in an institution that is a
member of the Federal Deposit Insurance Corporation. Demand deposits, savings
deposits, or time deposits, of the type that are federally insured in solvent
banks, savings and loan associations, and their branches, which are organized
under the laws of the United States of America or under the laws of any state
of the United States of America may not exceed the greater of:
(1) the amount of federal deposit insurance
coverage pertaining to the deposit; or
(2) 10 percent of the issuing financial
institution's equity, provided that the institution's equity is in excess of
$25 million.
(c) The
applicant must maintain unencumbered assets in excess of all of its liabilities
by an amount equal to or greater than the minimum net worth requirement until
it receives its certificate of authority; then the HMO must meet the minimum
net worth requirements of Insurance Code §
843.403 by maintaining
unencumbered assets in excess of its liabilities by an amount equal to or
greater than the minimum net worth requirement.
(d) Foreign HMOs seeking admission to this
state, which are actively conducting business in other states, and approved
nonprofit health corporations authorized under Insurance Code §
844.005 (concerning
Provision of Certain Services on Behalf of Health Maintenance Organizations),
are required, at a minimum, to comply with Insurance Code §
843.403.
Notes
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