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Texas Insurance Code - INS § 843.404. Additional Net Worth Requirements

Current as of April 14, 2021 | Updated by FindLaw Staff

(a) The commissioner may adopt rules or by rule establish guidelines requiring a health maintenance organization to maintain a specified net worth based on:

(1) the nature and kind of risks the health maintenance organization underwrites or reinsures;

(2) the premium volume of risks the health maintenance organization underwrites or reinsures;

(3) the composition, quality, duration, or liquidity of the health maintenance organization's investment portfolio;

(4) fluctuations in the market value of securities the health maintenance organization holds;

(5) the adequacy of the health maintenance organization's reserves;

(6) the number of individuals enrolled by the health maintenance organization;  or

(7) other business risks.

(b) Rules adopted or guidelines established under this section must be designed to ensure the financial solvency of health maintenance organizations for the protection of enrollees.  The rules or guidelines may provide for a health maintenance organization to comply with a risk-based net worth requirement established under this section in stages over a two-year period.

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Cite this article: FindLaw.com - Texas Insurance Code - INS § 843.404. Additional Net Worth Requirements - last updated April 14, 2021 | https://codes.findlaw.com/tx/insurance-code/ins-sect-843-404/

Read this complete Texas Insurance Code - INS § 843.404. Additional Net Worth Requirements on Westlaw

FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.

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