20-1054. Issuance of certificate of
authority
A. Issuance of a certificate of authority shall be granted within the time
prescribed in section 20-216 by the director if the director is satisfied that the
following conditions are met:
1. The persons responsible for conducting the affairs of the health care services
organization are competent and trustworthy and are professionally capable of providing or
arranging for the provision of health and medical services being offered.
2. The health care services organization constitutes an appropriate mechanism to
achieve an effective health care plan pursuant to this title and any rule that is adopted
by the director.
3. The health care services organization is financially responsible and may
reasonably be expected to meet its obligations to enrollees and prospective
enrollees. In making this determination, the director may consider:
(a) The financial soundness of the health care plan's arrangements for health care
services and the schedule of charges used in connection therewith.
(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 health care
services or the provision for automatic applicability of an alternative coverage in the
event of discontinuance of the plan.
(c) Any agreement with providers for the provision of health care services.
4. Each officer responsible for conducting the affairs of the health care services
organization has filed with the director, subject to the director's approval, a fidelity
bond in the amount of fifty thousand dollars.
B. Unless preempted under federal law or unless federal law imposes greater
requirements than this section, this section applies to a provider sponsored health care
services organization.
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