An application shall be approved if the application is complete, the applicant meets the requirements of these rules and the Act, and the applicant agrees to the terms and conditions ot the loan assistance program;
(a) Physicians. - (i) Amount. The principal amount of the loan shall be the amount applied for, but shall not exceed the premium for the coverage purchased or to be purchased under this Act by the physician. This amount shall be prorated to reflect the percentage of the physician's or the contracting entity's actual practice in Wyoming;
- (ii) Terms of the contract. Upon approval of the application, the physician shall enter into a contract with the Department and shall sign a promissory note as approved by the Department prior to disbursement of any funds. The contract shall include the following terms:
- (A) Practice in Wyoming. The physician shall agree to practice in Wyoming in the physician's specialty or sub-specialty for a period of three (3) years after the effective date of the malpractice insurance policy purchased with the loan proceeds;
- (B) Interest rate. The interest rate for loans made pursuant to this Chapter shall be determined by the Wyoming State Treasurer at an annual rate equal to the average prime interest rate during the preceding fiscal year plus one percent (1%) and shall be adjusted effective January l" of each calendar year, including January V\ 2005. To determine the average prime interest rate, the State Treasurer shall average the prime interest rate for at least seventy-five percent (75%) of the thirty (30) largest banks in the United States.
- (C) Time for repayment. Loans made pursuant to this Act shall be repaid in no more than five (5) years from the date the loan funds are disbursed;
- (D) Participation in Medicaid and CHIP. The physician shall become or shall continue as a Medicaid and CHIP services provider for the three (3) year period specified above in subsection (A);
- (E) Breach of contract. In addition to any other civil or criminal penalties that may be imposed by law, any physician or contracting entity that fails or refuses to fulfill the terms of the contract required under this Act shall be in breach of the contract. In the event of a breach of the contract, the physician shall immediately repay the outstanding principal on the loan, plus accrued interest under the contract, together with attorney fees, and any other costs of collection;
- (F) Documentation. A physician shall, upon written request of the Department, promptly provide documentation to show that the physician is in compliance with the contract. In addition, the physician shall, at the times specified in the contract but in no event less than once per year, submit documentation showing compliance with the terms of the contract. The physician shall promptly notify the Department in writing of any change in name, address or other terms which may affect the terms of the Contract; and
- (G) Disclosure of delinquency. The Department may disclose any delinquency or default on the loan or the contract to credit bureaus.
(b) Contracting entities. - (i) Loans. The Department may make loans pursuant to this Act to contracting entities to permit them to purchase insurance coverage provided under the Act for the contracting entity's physicians.
- (ii) Eligibility. Except as specifically provided for below, a contracting entity is eligible for a loan to purchase coverage under this Act to the same extent and on the same terms as a physician pursuant to subsection (a).
- (iii) Terms of the contract. The contracting entity shall enter into a contract with the Department and, in addition to the requirements found in Sections 9(a)(ii) above, the following terras shall be included in the contract:
- (A) Time for repayment. Loans made pursuant to this Act shall be repaid in no more than five (5) years from the date the loan fimds are disbursed.
- (B) Documentation. The contracting entity is responsible to provide the documentation requested in Sections 9(a)(ii)(F), above.