Minnesota Statutes Insurance (Ch. 59A-79a) § 62D.042. Initial net worth requirement

Subdivision 1. Definition. For purposes of this section, if a health maintenance organization offers supplemental benefits as described insection 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 8-1/3percent 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 Repealed byLaws 1998, c. 407, art. 8, § 14, par. (b), eff.April 22, 1998.

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 insection 62D.04, subdivision 1, clause (f).

Subds. 5 to 7. Repealed byLaws 2004, c. 285, art. 3, § 11, par. (a).