Texas Insurance Code

§ 843.406 — HAZARDOUS FINANCIAL CONDITION

IN § 843.406Title 6. ORGANIZATION OF INSURERS AND RELATED ENTITIES · Part C. LIFE, HEALTH, AND ACCIDENT INSURERS AND RELATED ENTITIES · Ch. 843. HEALTH MAINTENANCE ORGANIZATIONS · Art. L. FINANCIAL REGULATION OF HEALTH MAINTENANCE ORGANIZATIONS

Statute text

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(a)If the financial condition of a health maintenance organization indicates that the continued operation of the health maintenance organization could be hazardous to its enrollees or creditors or the public, the commissioner may, after notice and opportunity for hearing:

(1)suspend or revoke the health maintenance organization's certificate of authority; or

(2)order the health maintenance organization to take action reasonably necessary to correct the condition, including by:

(A)reducing by reinsurance the total amount of present and potential liability for benefits;

(B)reducing the volume of new business being accepted;

(C)reducing expenses by specified methods;

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Legislative history

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.