20-1075. Transactions with affiliates


A. A health care services organization shall not attempt to sell or otherwise
transfer to an affiliate Arizona assets in excess of ten per cent of the organization's
unimpaired capital or surplus as reported in its most recent annual statement, without
prior approval by the director. If the director does not disapprove such sale or
transfer within forty-five days of the date received by the director, the sale or
transfer is deemed approved.


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.