Arizona Laws 20-1004. Issuance of certificate of authority
Issuance of a certificate of authority shall be granted by the director if the director is satisfied that the following conditions are met:
Terms Used In Arizona Laws 20-1004
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Prepaid dental plan: means any contractual arrangement whereby any prepaid dental plan organization undertakes to provide directly or to arrange for prepaid dental services and to pay or make reimbursement for any remaining portion of such prepaid dental services on a prepaid basis through insurance or otherwise. See Arizona Laws 20-1001
- Prepaid dental plan organization: means any person who undertakes to conduct one or more prepaid dental plans providing only dental services. See Arizona Laws 20-1001
- Prepaid dental services: means services included in the practice of dentistry as described in section 32-1202. See Arizona Laws 20-1001
1. The persons responsible for conducting the affairs of the prepaid dental plan organization are competent and are professionally capable of providing or arranging for the provision of services offered.
2. The prepaid dental plan organization constitutes an appropriate mechanism to achieve an effective prepaid dental plan, in accordance with regulations issued by the director, that shall include at least the basic dental services appropriate to that plan as determined by the director.
3. The prepaid dental plan organization is financially responsible and may reasonably be expected to meet its obligations to members and prospective members. In making this determination, the director shall consider at least:
(a) The financial soundness of the prepaid dental plan’s arrangements for services and the schedule of charges used.
(b) Any agreement with an insurer, a hospital or a medical service corporation, a government or any other organization for insuring the payment of the cost of prepaid dental services or the provisions for automatic applicability of an alternative coverage in the event of discontinuance of the plan.
(c) The sufficiency of an agreement with providers for the provision of prepaid dental services.
4. Each officer responsible for conducting the affairs of the prepaid dental plan organization has filed with the director, subject to the director’s approval, a fidelity bond in the amount of $50,000.