A. Issuance of a certificate of authority for a prepaid dental plan organization shall be granted by the Commissioner if the Commissioner is satisfied that the following conditions are met:
1. The persons responsible for conducting the business 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; and
2. The prepaid dental plan organization constitutes an appropriate mechanism to achieve an effective prepaid dental plan; and
3. Each officer, responsible for conducting the business affairs of the prepaid dental plan organization, has filed with the Commissioner a fidelity bond in the amount of Fifty Thousand Dollars ($50,000.00), said bond to be subject to the approval of the Commissioner; and
4. The financial structure of the prepaid dental plan organization may reasonably be expected to meet obligations for payment of services for members and prospective members. In making this determination the Commissioner may consider:
a.the financial soundness of the arrangements made pursuant to the provisions of the prepaid dental plan for services and the schedule of charges used; and
b.any agreement with an insurer, a hospital, a medical service corporation, or any other organization for ensuring the payment of prepaid dental services; and
c.provisions in the plan for automatic coverage of dental service if the prepaid dental plan is discontinued; and
d.the sufficiency of the agreement for prepaid dental services with providers of dental services.
B. A certificate of authority shall expire at midnight on June 30, following the date of issuance or last renewal date. If the prepaid dental plan organization remains in compliance with the provisions of the Prepaid Dental Plan Act and pays a renewal fee of One Hundred Dollars ($100.00), the certificate of authority of said plan may be renewed. The renewal fee shall be deposited in the Insurance Commissioner Revolving Fund.
Added by Laws 1983, c. 66, § 5, eff. Nov. 1, 1983.