North Dakota Administrative Code
Title 45 - Insurance, Commissioner of
Article 45-06 - Accident and Health Insurance
Chapter 45-06-13 - Provider-Sponsored Organizations
Section 45-06-13-06 - Liquidity

Universal Citation: ND Admin Code ยง 45-06-13-06

Current through Supplement No. 394, October, 2024

1. A provider-sponsored organization shall have sufficient cash flow to meet its financial obligations as they become due and payable.

2. To determine whether the provider-sponsored organization meets the requirement in subsection 1, the department will examine the following:

a. The provider-sponsored organization's timelilness in meeting current obligations;

b. The extent to which the provider-sponsored organization's current ratio of assets to liabilities is maintained at a one to one ratio including whether there is a declining trend in the current ratio over time; and

c. The availability of outside financial resources to the provider-sponsored organization.

3. If the department determines that a provider-sponsored organization fails to meet the requirement in subdivision a of subsection 2, the department will require the provider-sponsored organization to initiate corrective action and pay all overdue obligations.

4. If the department determines that a provider-sponsored organization fails to meet the requirement of subdivision b of subsection 2, the department will require the provider-sponsored organization to initiate corrective action to:

a. Change the distribution of its assets;

b. Reduce its liabilities; or

c. Make alternative arrangements to secure additional funding to restore the provider-sponsored organization's current ratio to one to one.

5. If the department determines that a provider-sponsored organization fails to meet the requirement of subdivision c of subsection 2, the department will require the provider-sponsored organization to obtain funding from alternative financial resources.

General Authority: NDCC 26.1-01-07.6

Law Implemented: NDCC 26.1-01-07.6

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