                                 CODE OF VIRGINIA

DEPOSITS (§ 38.2-4310.1)

A. A health maintenance organization shall make its initial deposit prior to
licensure in an amount not less than $300,000. The Commission shall review a
health maintenance organization&#8217;s deposit requirement at least once each
year and may require an additional deposit in an amount equal to the greater of
(i) the sum of all uncovered expenses for the most recent three months reported
in accordance with &#xA7; 38.2-4307.1 B or (ii) the value of liabilities
representing uncovered health care expenses.

B. The Commission may reduce or waive, and also may direct the State Treasurer
to return, any or all of a deposit requirement whenever the Commission, in its
discretion, is satisfied that the assets of the health maintenance organization
or its contracts with insurers, health services plans, governments, or other
organizations are sufficient to assure the performance of its obligations to
enrollees.

C. A health maintenance organization that has experienced an operating profit
for the two most recent years may request that its deposit requirement be
reduced. &#8220;Operating profit&#8221; shall be determined by reference to the
annual statements filed by the health maintenance organization and shall mean
the excess of total revenue, excluding net investment income, over total
expenses.

HISTORY: 2000, c. 503.