W. Va. Code R. § 114-43-5

Current through Register Vol. XLII, No. 1, January 3, 2025

Section 114-43-5 - Guarantees

5.1. A health service intermediary's obligations, pursuant to paragraphs 3.1.d and 3.1.e. may be fulfilled by the unconditional, irrevocable guarantee of a parent, sister or affiliated entity which:

a. Has been in operation for five years or more and has a surplus on a West Virginia statutory accounting basis, not including land, buildings, and equipment, of greater than $2 million. In any determination of the financial condition of the guaranteeing operation, investments in or loans to any organizations guaranteed by the guaranteeing organization shall be excluded from surplus. If the guaranteeing organization is sponsoring more than one organization, the surplus requirement shall be increased by a multiple equal to the number of organizations;

b. Submits a guarantee that is approved by the commissioner in writing as meeting the requirements of this section. The written guarantee must contain a provision which requires that the guarantee be irrevocable unless the guaranteeing organization can demonstrate to the commissioner that the cancellation of the guarantee will not result in the insolvency of the intermediary and the commissioner approves in writing the cancellation of the guarantee;

c. Initially submits its audited financial statements, certified by an independent certified public accountant, prepared in accordance with generally accepted accounting principles, covering its two most current annual accounting periods; and

d. Submits annually, within three (3) months after the end of its fiscal year, an audited financial statement certified by an independent certified public accountant, prepared in accordance with generally accepted accounting principles. The commissioner may, as he or she considers necessary, require quarterly financial statements from the guaranteeing organization.

W. Va. Code R. § 114-43-5