                                 CODE OF VIRGINIA

ISSUANCE OF LICENSE; CAPITAL AND SURPLUS; IMPAIRMENT (§ 38.2-6103)

A. The Commission shall issue a license to a dental plan organization after the
filing of a complete application and payment of a $500 nonrefundable application
fee, if the Commission is satisfied that:

   1. The persons who are responsible for conducting the affairs of the dental
   plan organization are trustworthy and capable of providing, arranging for, or
   paying benefits for the services offered by its dental plan;

   2. The dental plan organization is financially responsible and may reasonably
   be expected to meet its obligations to enrollees. In making this
   determination, the Commission shall consider, among other things, the
   following:
   				a. The financial statements of the dental plan organization;
   				b. The adequacy of working capital;
   				c. Any contracts with plan dentists;
   				d. The deposit of acceptable securities, which shall be in an amount of no
   less than $50,000; and
   				e. The applicant&#8217;s minimum capital and surplus, which shall be the
   greater of $750,000 or 45 days of anticipated operating expenses and incurred
   claims expenses.

   3. Nothing in the method of operation is contrary to the public interest, as
   shown in the information submitted pursuant to &#xA7; 38.2-6102 or Chapter 58
   (&#xA7; 38.2-5800 et seq.) of this title or by independent investigation.

B. A licensed dental plan organization shall have and maintain at all times the
minimum capital and surplus described in subdivision A 2 e. The licensee&#8217;s
capital and surplus shall be subject also to the risk-based capital requirements
of Chapter 55 (§ 38.2-5500 et seq.) of this title.

   1. If the Commission finds that the minimum capital and surplus of a domestic
   dental plan organization is impaired, the Commission shall issue an order
   requiring the dental plan organization to eliminate the impairment within a
   period not exceeding 90 days. The Commission may by order served upon the
   dental plan organization prohibit the dental plan organization from issuing
   any new dental benefit contracts while the impairment exists. If at the
   expiration of the designated period the dental plan organization has not
   satisfied the Commission that the impairment has been eliminated, an order for
   the rehabilitation or liquidation of the dental plan organization may be
   entered as provided in Chapter 15 (&#xA7; 38.2-1500 et seq.) of this title.

   2. If the Commission finds an impairment of the minimum capital and surplus of
   any foreign dental plan organization, the Commission may order the dental plan
   organization to eliminate the impairment. The Commission may, by order served
   upon the dental plan organization, prohibit the dental plan organization from
   issuing any new dental benefit contracts while the impairment exists. If the
   dental plan organization fails to comply with the Commission&#8217;s order
   within a period of not more than 90 days, the Commission may suspend or revoke
   the license of the dental plan organization.

HISTORY: 2004, c. 668.