License suspension, revocation or failure to renew; grounds; effect.

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(a) Any fact or condition exists that, if the fact or condition had existed at the time the licensee applied for a license to operate as a discount medical plan organization, would have been grounds for the director to deny a license to the licensee;

(b) The licensee has not complied or is not complying with the licensee’s obligations under ORS 742.424, 742.426, 742.428, 742.432 or 742.436 or any rule adopted thereunder or the licensee has violated or is violating a prohibition under ORS 742.434; or

(c) The licensee’s license or other authority to operate as a discount medical plan organization in another state has been suspended or revoked or has not been renewed.

(2) A licensee subject to an order of the director suspending or revoking a license shall have an opportunity for a hearing under ORS 183.413 to 183.470.

(3) After the director issues a final order to suspend or revoke a license, the person subject to the order may not conduct further business as a discount medical plan organization in this state. Immediately after the director issues a final order suspending or revoking a license, the person subject to the order shall:

(a) Cease operations as a discount medical plan organization in this state;

(b) Cancel all pending transactions with plan members and refund any fees, service or subscription charges, dues or other consideration collected in exchange for services the person would have provided to plan members in connection with a discount medical plan after the effective date of the final order suspending or revoking the person’s license; and

(c) Wind up all business conducted in connection with the person’s operations as a discount medical plan organization in this state, if necessary. [2007 c.272 §11]

Note: See note under 742.420.


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