Iowa Admin. Code r. 191-40.15

Current through Register Vol. 47, No.14, January 8, 2025

Rule 191-40.15 - Cash or asset management agreements

If an HMO utilizes a cash or asset management arrangement with its parent, affiliate, or any other person, the arrangement shall be written and subject to prior approval by the commissioner Cash or asset management agreements shall meet the following minimum requirements:

(1) Cash receipts shall be under the direct control of the HMO that generated the receipts. If the system is under the control of the HMO's parent or affiliate, then receipts shall be transferred to the HMO within five working days.

(2) Securities purchased shall be in the name of the HMO generating the funds for the security purchase.

(3) An HMO's investments shall not be pooled with other entities' investments unless there is an agreement which vests an undivided interest in the pooled arrangement to the HMO. Such an agreement shall be subject to prior approval by the commissioner

(4) An HMO's cash or investments shall not be commingled with the cash or investments of any other person.

(5) Investments made on behalf of an HMO shall be subject to the limitations imposed by Iowa Code sections 5118. and 5146.15.

(6) The agreement shall provide for prompt notice and verification of investments, establish responsibility for brokerage and other fees and provide for periodic reports on earnings and expenses.

(7) A parent, affiliate, person, and employees thereof providing cash or asset management services shall be bonded and responsible for any physical loss of investments.

Iowa Admin. Code r. 191-40.15