20-1005. Deposit requirement; exception
A. A prepaid dental plan organization shall maintain on deposit with the state treasurer through the director's office a surety bond, guaranteeing services under the plan, or cash or securities eligible for investment of capital funds, in the following amounts depending on the number of members entitled to dental care services pursuant to contracts issued by the plan:
Number of members Deposit 5, 000 or less $ 25, 000 5, 001 - 7, 500 30, 000 7, 501 - 10, 000 50, 000 10, 001 - 15, 000 75, 000 15, 001 - 20, 000 100, 000 20, 001 - 25, 000 125, 000 25, 001 - 30, 000 150, 000 30, 001 - 40, 000 175, 000 40, 001 and above 200, 000
B. The deposit prescribed by subsection A shall be held by the state treasurer in trust for the benefit and protection of persons covered by a prepaid dental plan.
C. Any securities within the description of subsection A, with the approval of the director, may be exchanged for similar securities or cash of equal amount. Interest on securities deposited shall be payable to the prepaid dental plan organization depositing such securities.
D. An unpaid final judgment arising upon a membership coverage shall be a lien on the deposit prescribed by subsection A, subject to execution after thirty days from the entry of final judgment. If the deposit is reduced, it shall be replenished within ninety days by the prepaid dental plan organization.
E. Upon liquidation or dissolution of a prepaid dental plan organization and the satisfaction of all its debts and liabilities, any balance remaining of the cash or securities deposit prescribed in subsection A together with any other assets of the prepaid dental plan organization shall be returned by the director to the prepaid dental plan organization.
F. The deposit prescribed by subsection A shall not apply with respect to a prepaid dental plan organization which is funded by the federal, state or a municipal government or any political subdivision or body to the extent and for such period of time that the prepaid dental plan organization can demonstrate to the director the presence of operational commitments from such sources equivalent to such deposit.
Section: Previous 20-891 20-892 20-893 20-1001 20-1002 20-1003 20-1004 20-1005 20-1006 20-1006.01 20-1007 20-1008 20-1009 20-1010 20-1011 NextLast modified: October 13, 2016