Code of Maryland Regulations
Title 31 - MARYLAND INSURANCE ADMINISTRATION
Subtitle 10 - HEALTH INSURANCE-GENERAL
Chapter 31.10.22 - Provider - Sponsored Organizations
Section 31.10.22.07 - Deposit of Securities

Universal Citation: MD Code Reg 31.10.22.07

Current through Register Vol. 51, No. 6, March 22, 2024

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.

Disclaimer: These regulations may not be the most recent version. Maryland may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.