10-16-506. Reserve requirement - exception.

Statute text

(1) A prepaid dental care plan organization formed under part 1 of this article and this part 5 at all times shall maintain for protection of enrollees a financial reserve consisting of two percent of prepaid charges collected from enrollees for the plan, until such reserve totals five hundred thousand dollars. Such reserve shall be in addition to the deposit prescribed by section 10-16-505.

(2) The reserve prescribed by subsection (1) of this section shall not apply with respect to a prepaid dental care plan organization which is funded by a federal, state, or municipal government or by any political subdivision thereof and which meets the requirements of section 10-16-505 (5).

History

Source: L. 92: Entire article R&RE, p. 1718, 1, effective July 1.

Annotations

Editor's note: This section is similar to former 10-16.5-108 as it existed prior to 1992.