20-1055. Deposit requirement
A. A health care services organization at all times shall maintain on deposit with
the state treasurer through the director's office cash, or securities eligible for the
investment of capital funds of domestic insurers under this title, or other financial
security approved by the director in an amount of not less than five hundred thousand
dollars.
B. The deposit prescribed by subsection A shall be held by the state treasurer in
trust for the benefit and protection of persons covered by a health care plan and for the
satisfaction of all debts and liabilities of the health care services organization.
C. Any securities within the description of subsection A, with the approval of the
director, may be exchanged for similar securities or cash of equal amount. Interest on
securities so deposited shall be payable to the health care services organization
depositing them.
D. An unsettled final judgment arising upon an evidence of coverage shall be a lien
on the deposit prescribed by subsection A, subject to execution after thirty days from
the entry of final judgment. If the deposit is reduced, it shall be replenished within
ninety days by the health care services organization.
E. Upon liquidation, dissolution or withdrawal of a health care services
organization and the satisfaction of all of its debts and liabilities, any balance
remaining of the cash or securities deposit prescribed in subsection A together with any
other assets of the health care services organization shall be returned by the director
to the health care services organization.
F. 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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