§ 38.2-4317. Rehabilitation, liquidation, or conservation.
A. Any rehabilitation, liquidation, or conservation of a health maintenanceorganization shall be deemed to be the rehabilitation, liquidation, orconservation of an insurer and shall be conducted under the supervision ofthe Commission. The Commission may enter an order directing therehabilitation, liquidation, or conservation of a health maintenanceorganization upon any one or more grounds set out in §§ 38.2-1500 through38.2-1521 or when, in the Commission's opinion, the continued operation ofthe health maintenance organization would be hazardous either to theenrollees or to the people of this Commonwealth.
B. For the purpose of determining the priority of distribution of generalassets, claims of enrollees and enrollees' beneficiaries shall have the samepriority as established by § 38.2-1509 for policyholders and beneficiaries ofinsureds of insurance companies. If an enrollee is liable to any provider forservices provided pursuant to and covered by the health care plan, thatliability shall have the status of an enrollee claim. Any provider who isobligated by statute or agreement to hold enrollees harmless from liabilityfor services provided pursuant to and covered by a health care plan shallhave a priority of distribution next subordinate to that of policyholdersunder subdivision 1 (iv) of subsection B of § 38.2-1509.
C. One or more health maintenance organizations may, subject to approval bythe Commission, contract to assume all or part of the business operations,subscriber contracts and obligations of another health maintenanceorganization. The Commission is authorized to make known to other healthmaintenance organizations and other interested parties the financialcondition of a health maintenance organization found by the Commission to beimpaired or insolvent.
(1980, c. 720, § 38.1-881; 1986, c. 562; 1989, c. 216.)
§ 38.2-4317. Rehabilitation, liquidation, or conservation.
A. Any rehabilitation, liquidation, or conservation of a health maintenanceorganization shall be deemed to be the rehabilitation, liquidation, orconservation of an insurer and shall be conducted under the supervision ofthe Commission. The Commission may enter an order directing therehabilitation, liquidation, or conservation of a health maintenanceorganization upon any one or more grounds set out in §§ 38.2-1500 through38.2-1521 or when, in the Commission's opinion, the continued operation ofthe health maintenance organization would be hazardous either to theenrollees or to the people of this Commonwealth.
B. For the purpose of determining the priority of distribution of generalassets, claims of enrollees and enrollees' beneficiaries shall have the samepriority as established by § 38.2-1509 for policyholders and beneficiaries ofinsureds of insurance companies. If an enrollee is liable to any provider forservices provided pursuant to and covered by the health care plan, thatliability shall have the status of an enrollee claim. Any provider who isobligated by statute or agreement to hold enrollees harmless from liabilityfor services provided pursuant to and covered by a health care plan shallhave a priority of distribution next subordinate to that of policyholdersunder subdivision 1 (iv) of subsection B of § 38.2-1509.
C. One or more health maintenance organizations may, subject to approval bythe Commission, contract to assume all or part of the business operations,subscriber contracts and obligations of another health maintenanceorganization. The Commission is authorized to make known to other healthmaintenance organizations and other interested parties the financialcondition of a health maintenance organization found by the Commission to beimpaired or insolvent.
(1980, c. 720, § 38.1-881; 1986, c. 562; 1989, c. 216.)
§ 38.2-4317. Rehabilitation, liquidation, or conservation.
A. Any rehabilitation, liquidation, or conservation of a health maintenanceorganization shall be deemed to be the rehabilitation, liquidation, orconservation of an insurer and shall be conducted under the supervision ofthe Commission. The Commission may enter an order directing therehabilitation, liquidation, or conservation of a health maintenanceorganization upon any one or more grounds set out in §§ 38.2-1500 through38.2-1521 or when, in the Commission's opinion, the continued operation ofthe health maintenance organization would be hazardous either to theenrollees or to the people of this Commonwealth.
B. For the purpose of determining the priority of distribution of generalassets, claims of enrollees and enrollees' beneficiaries shall have the samepriority as established by § 38.2-1509 for policyholders and beneficiaries ofinsureds of insurance companies. If an enrollee is liable to any provider forservices provided pursuant to and covered by the health care plan, thatliability shall have the status of an enrollee claim. Any provider who isobligated by statute or agreement to hold enrollees harmless from liabilityfor services provided pursuant to and covered by a health care plan shallhave a priority of distribution next subordinate to that of policyholdersunder subdivision 1 (iv) of subsection B of § 38.2-1509.
C. One or more health maintenance organizations may, subject to approval bythe Commission, contract to assume all or part of the business operations,subscriber contracts and obligations of another health maintenanceorganization. The Commission is authorized to make known to other healthmaintenance organizations and other interested parties the financialcondition of a health maintenance organization found by the Commission to beimpaired or insolvent.
(1980, c. 720, § 38.1-881; 1986, c. 562; 1989, c. 216.)
