Virginia Code 38.2-6103: Issuance of license; capital and surplus; impairment
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:
Terms Used In Virginia Code 38.2-6103
- Commission: means the State Corporation Commission. See Virginia Code 38.2-100
- Dental plan: means a contractual arrangement for dental services provided or arranged for, that pays benefits or is administered on an individual or group basis. See Virginia Code 38.2-6101
- Dental plan organization: means a company that provides directly or arranges for a dental plan. See Virginia Code 38.2-6101
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’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 § 38.2-6102 or Chapter 58 (§ 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’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 (§ 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’s order within a period of not more than 90 days, the Commission may suspend or revoke the license of the dental plan organization.
2004, c. 668.