20-1004. Issuance of certificate of
authority
Issuance of a certificate of authority shall be granted by the director if the
director is satisfied that the following conditions are met:
1. The persons responsible for conducting the affairs of the prepaid dental plan
organization are competent and trustworthy and are professionally capable of providing or
arranging for the provision of services offered.
2. The prepaid dental plan organization constitutes an appropriate mechanism to
achieve an effective prepaid dental plan, in accordance with regulations issued by the
director, that shall include at least the basic dental services appropriate to that plan
as determined by the director.
3. The prepaid dental plan organization is financially responsible and may
reasonably be expected to meet its obligations to members and prospective members. In
making this determination the director shall consider at least:
(a) The financial soundness of the prepaid dental plan's arrangements for services
and the schedule of charges used.
(b) Any agreement with an insurer, a hospital or a medical service corporation, a
government or any other organization for insuring the payment of the cost of prepaid
dental services or the provisions for automatic applicability of an alternative coverage
in the event of discontinuance of the plan.
(c) The sufficiency of an agreement with providers for the provision of prepaid
dental services.
4. Each officer responsible for conducting the affairs of the prepaid dental plan
organization has filed with the director, subject to the director's approval, a fidelity
bond in the amount of fifty thousand dollars.
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