Current as of May 06, 2021 | Updated by FindLaw Staff
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A. Issuance of a certificate of authority shall be granted by the superintendent if the superintendent is satisfied that the following conditions are met:
(1) the persons responsible for conducting the affairs of the prepaid dental plan organization are competent and trustworthy and are professionally capable of providing or arranging for the provision of services offered;
(2) the prepaid dental plan organization constitutes an appropriate mechanism to achieve an effective prepaid dental plan, in accordance with regulations issued by the director of the health services division of the department of health, which shall include at least the basic dental services appropriate to such plan as determined by the director of the health services division of the health and environment department;
(3) the prepaid dental plan organization is financially responsible and may reasonably be expected to meet its obligations to members and prospective members. In making this determination, the superintendent shall consider at least:
(a) the financial soundness of the prepaid dental plan's arrangement for services and the schedule of charges used;
(b) any agreement with an insurer, a hospital or a medical service corporation, a government or any other organization for insuring the payment of the cost of prepaid dental services or the provisions for automatic applicability of an alternative coverage in the event of the discontinuance of the plan; and
(c) the sufficiency of an agreement with providers for the provision of prepaid dental services; and
(4) each officer responsible for conducting the affairs of the prepaid dental plan organization is covered under an individual or blanket fidelity bond in the amount of fifty thousand dollars ($50,000), and such bond has been filed with and approved by the superintendent.
B. A certificate of authority shall be subject to continuance, expiration, termination, suspension or revocation on the same applicable bases as provided under Article 5 of the Insurance Code 1 as to insurers in general.
Cite this article: FindLaw.com - New Mexico Statutes Chapter 59A. Insurance Code § 59A-48-5. Issuance of certificate of authority - last updated May 06, 2021 | https://codes.findlaw.com/nm/chapter-59a-insurance-code/nm-st-sect-59a-48-5/
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