State Codes and Statutes

Statutes > North-carolina > Chapter_58 > GS_58-67-105

§58‑67‑105.  Hazardous financial condition.

(a)        Whenever thefinancial condition of any health maintenance organization indicates acondition such that the continued operation of the health maintenanceorganization might be hazardous to its enrollees, creditors, or the generalpublic, then the Commissioner may order the health maintenance organization totake such action as may be reasonably necessary to rectify the existingcondition, including but not limited to one or more of the following steps:

(1)        To reduce the totalamount of present and potential liability for benefits by reinsurance;

(2)        To reduce the volumeof new business being accepted;

(3)        To reduce theexpenses by specified methods;

(4)        To suspend or limitthe writing of new business for a period of time; or

(5)        To require anincrease to the health maintenance organization's net worth by contribution.

(b)        The Commissionermay adopt rules to set uniform standards and criteria for the early warningthat the continued operation of any health maintenance organization might behazardous to its enrollees, creditors, or the general public, and to setstandards for evaluating the financial condition of any health maintenanceorganization, which standards shall be consistent with the purposes expressed insubsection (a) of this section. (1987, c. 631, s. 5.)

State Codes and Statutes

Statutes > North-carolina > Chapter_58 > GS_58-67-105

§58‑67‑105.  Hazardous financial condition.

(a)        Whenever thefinancial condition of any health maintenance organization indicates acondition such that the continued operation of the health maintenanceorganization might be hazardous to its enrollees, creditors, or the generalpublic, then the Commissioner may order the health maintenance organization totake such action as may be reasonably necessary to rectify the existingcondition, including but not limited to one or more of the following steps:

(1)        To reduce the totalamount of present and potential liability for benefits by reinsurance;

(2)        To reduce the volumeof new business being accepted;

(3)        To reduce theexpenses by specified methods;

(4)        To suspend or limitthe writing of new business for a period of time; or

(5)        To require anincrease to the health maintenance organization's net worth by contribution.

(b)        The Commissionermay adopt rules to set uniform standards and criteria for the early warningthat the continued operation of any health maintenance organization might behazardous to its enrollees, creditors, or the general public, and to setstandards for evaluating the financial condition of any health maintenanceorganization, which standards shall be consistent with the purposes expressed insubsection (a) of this section. (1987, c. 631, s. 5.)


State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_58 > GS_58-67-105

§58‑67‑105.  Hazardous financial condition.

(a)        Whenever thefinancial condition of any health maintenance organization indicates acondition such that the continued operation of the health maintenanceorganization might be hazardous to its enrollees, creditors, or the generalpublic, then the Commissioner may order the health maintenance organization totake such action as may be reasonably necessary to rectify the existingcondition, including but not limited to one or more of the following steps:

(1)        To reduce the totalamount of present and potential liability for benefits by reinsurance;

(2)        To reduce the volumeof new business being accepted;

(3)        To reduce theexpenses by specified methods;

(4)        To suspend or limitthe writing of new business for a period of time; or

(5)        To require anincrease to the health maintenance organization's net worth by contribution.

(b)        The Commissionermay adopt rules to set uniform standards and criteria for the early warningthat the continued operation of any health maintenance organization might behazardous to its enrollees, creditors, or the general public, and to setstandards for evaluating the financial condition of any health maintenanceorganization, which standards shall be consistent with the purposes expressed insubsection (a) of this section. (1987, c. 631, s. 5.)