2006 Minnesota Statutes

62D.042 INITIAL NET WORTH REQUIREMENT.
    Subdivision 1. Definition. For purposes of this section, if a health maintenance organization
offers supplemental benefits as described in section 62D.05, subdivision 6, "expenses" does not
include any expenses attributable to the supplemental benefit.
    Subd. 2. Initial net worth requirement. Beginning organizations shall maintain net worth
of at least 8-1/3 percent of the sum of all expenses expected to be incurred in the 12 months
following the date the certificate of authority is granted, or $1,500,000, whichever is greater.
    Subd. 3.[Repealed, 1998 c 407 art 8 s 14]
    Subd. 4. Reduction for reinsurance. In calculating expenses for purposes of the net worth
requirement, a health maintenance organization may subtract 90 percent of the cost of premiums
it pays for insurance coverage specified in section 62D.04, subdivision 1, clause (f).
    Subd. 5.[Repealed, 2004 c 285 art 3 s 11]
    Subd. 6.[Repealed, 2004 c 285 art 3 s 11]
    Subd. 7.[Repealed, 2004 c 285 art 3 s 11]
History: 1988 c 612 s 14; 1989 c 282 art 2 s 5; 1993 c 345 art 2 s 1; 1995 c 234 art 7 s 7;
1997 c 205 s 5; 1998 c 407 art 8 s 2; 2004 c 285 art 3 s 5,6,10