Ala. Admin. Code r. 482-1-079-.16

Current through Register Vol. 43, No. 1, October 31, 2024

Section 482-1-079-.16 - Deposit Requirements

The initial $100,000 deposit and any subsequent annual deposit requirements of an HMO shall be deposited, through the Commissioner, with the State Treasurer. The deposit shall be in the form of certificates of deposit with solvent, United States banks, or any combination of securities, the market value of which is readily ascertainable, and, if negotiable by delivery or assignment, of the kinds described below:

(1) United States government obligations;

(2) State, county, municipal and school obligations;

(3) Public improvement obligations;

(4) Housing authority obligations;

(5) Obligations, stock of certain federal agencies;

(6) Canadian governmental obligations;

(7) International banks;

(8) Corporate obligations;

(9) Equipment trust obligations;

(10) Railroad leased lines, terminal obligations.

The market value of the deposit of any HMO shall at all times be equal to or greater than $100,000. If at any time the value of the securities held on deposit is less than $100,000, the HMO shall promptly deposit sufficient, acceptable securities to meet the deficiency in market value.

Author: Commissioner of Insurance

Ala. Admin. Code r. 482-1-079-.16

New Rule: Filed April 22, 1987; effective May 8, 1987. Filed for codification in the Alabama Administrative Code by the Department of Insurance on April 23, 2004, pursuant to the Code of Ala. 1975, § 27-7-43.

Statutory Authority:Code of Ala. 1975, §§ 27-2-17, 27-21A-19.