WILLIAM DONALD SCHAEFER, Governor Ch. 364

(4) The Commissioner may waive the surplus and
deposit requirements contained in this subsection if the
Commissioner is satisfied that:

(i) The health maintenance organization has
sufficient net worth and an adequate history of generating net
income to assure financial viability for the next year;

(ii) The health maintenance organization's
performance and obligations are guaranteed by another person with
sufficient net worth and an adequate history of generating net
income; or

(iii) The assets of the health maintenance
organization or contracts with insurers, governments, providers,
or other persons are sufficient to reasonably assure the
performance of the health maintenance organization's obligations.

Chapter 754 of the Acts of 1988

[SECTION 3. AND BE IT FURTHER ENACTED, That any health
maintenance organization operating under a certificate of
authority issued by the Insurance Commissioner prior to the
effective date of this Act shall maintain, beginning July 1,
1988, surplus in the amount that is at least equal to the greater
of $150,000 or 5% of the earned subscription charges for the
preceding 12 months; beginning July 1, 1989, surplus in the
amount that is at least equal to the greater of $200,000 or 5% of
the earned subscription charges for the preceding 12 months; and
beginning July 1, 1990, surplus in the amount that is at least
equal to the greater of $250,000 or 5% of the earned subscription
charges of the preceding 12 months.]

SECTION 2. AND BE IT FURTHER ENACTED, That any health
maintenance organization operating under a certificate of
authority issued by the Insurance Commissioner prior to the
effective date of this Act shall maintain, beginning July 1,
1989, surplus in an amount that is at least equal to the greater
of $500,000 or 5% of the subscription charges earned during the
prior calendar year; and beginning July 1, 1990, in an amount
that is at least equal to the greater of $750,000 or 5% of the
subscription charges earned during the prior calendar year. of
$250,000 or 5% of the subscription charges earned during the
prior calendar year; beginning July 1, 1990, in an amount that is
at least equal to the greater of $500,000 or 5% of the
subscription charges earned during the prior calendar year; and
beginning July 1, 1991, in an amount that is at least equal to
the greater of $750,000 or 5% of the subscription charges earned
during the prior calendar year.

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