Md. Code Regs. 31.10.22.07

Current through Register Vol. 51, No. 18, September 6, 2024

Section 31.10.22.07 - Deposit of Securities

A. Deposit Required. The Commissioner may not issue or renew a certificate of authority for a provider-sponsored organization unless it has deposited and maintains in trust with the State Treasurer, for the protection of its members or its members and creditors, cash or government securities of the type described in Health-General Article, §19-710, Annotated Code of Maryland, in the market value amount of $100,000.

B. Assets.

(1) For purposes of determining net worth, the deposit is an admitted asset of the provider-sponsored organization.

(2) All income from deposits is an asset of the provider-sponsored organization.

C. Withdrawal of Deposit. A provider-sponsored organization that has made a securities deposit may withdraw that deposit, or any part of the deposit, after making a substitute deposit of cash, securities, or any combination of these, or other measures of equal amount and value.

D. Approval of Commissioner. Securities shall be approved by the Commissioner before being deposited or substituted.

E. Use of Deposit. The deposit shall be used to:

(1) Protect the interests of the provider-sponsored organization's enrollees; and

(2) Assure continuation of health care services to enrollees of a provider-sponsored organization that is in rehabilitation, conservation, or liquidation.

Md. Code Regs. 31.10.22.07

Regulations .07 adopted as an emergency provision effective June 29, 1999 (26:15 Md. R. 1146); emergency status extended at 27:3 Md. R. 326; emergency status expired April 17, 2000; adopted permanently effective May 15, 2000 (27:9 Md. R. 860)