                                 CODE OF VIRGINIA

PROTECTION AGAINST INSOLVENCY (§ 38.2-4310)

Each health maintenance organization shall deposit and maintain acceptable
securities with the State Treasurer in amounts prescribed by § 38.2-4310.1. The
deposit shall be held as a special fund in trust, as a guarantee that the
obligations to the enrollees who are residents of this Commonwealth will be
performed. The securities shall be deposited pursuant to a system of book-entry
evidencing ownership interests of the securities with transfers of ownership
interests effected on the records of a depository and its participants pursuant
to rules and procedures established by the depository. Upon a determination of
insolvency or action by the Commission pursuant to Chapter 15 (§ 38.2-1500 et
seq.), the deposit shall be an asset subject to the provisions of Chapter 15 and
shall be used to protect the interests of the health maintenance
organization&#8217;s enrollees and to assure continuation of covered services to
enrollees. A health maintenance organization shall be subject to the provisions
of Chapter 17 (§ 38.2-1700 et seq.).

HISTORY: 1980, c. 720, § 38.1-874; 1986, c. 562; 1989, c. 216; 1990, c. 224;
1992, cc. 14, 20; 2000, c. 503; 2014, c. 814; 2018, c. 706; 2021, Sp. Sess. I,
c. 158.