Tex. Ins. Code § 843.404 · Subchapter L. FINANCIAL REGULATION OF HEALTH MAINTENANCE ORGANIZATIONS
ADDITIONAL NET WORTH REQUIREMENTS.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) The commissioner may adopt rules or by rule establish guidelines requiring a health maintenance organization to maintain a specified net worth based on:
(1) the nature and kind of risks the health maintenance organization underwrites or reinsures;
(2) the premium volume of risks the health maintenance organization underwrites or reinsures;
(3) the composition, quality, duration, or liquidity of the health maintenance organization's investment portfolio;
(4) fluctuations in the market value of securities the health maintenance organization holds;
(5) the adequacy of the health maintenance organization's reserves;
(6) the number of individuals enrolled by the health maintenance organization; or
(7) other business risks.
(b) Rules adopted or guidelines established under this section must be designed to ensure the financial solvency of health maintenance organizations for the protection of enrollees. The rules or guidelines may provide for a health maintenance organization to comply with a risk-based net worth requirement established under this section in stages over a two-year period.
Notes and commentary — not statutory text
History
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/IN/htm/IN.843.htm
- Text hash
- sha256 fa6cef3c3793588f51da73843f588de48571d8ac7b9a595d870968ba03b73d77
- Composed by
- compose_tx.py 2026-10-05: the Legislative Council's chapter files read in document order; verify_tx.py's independent reading (lxml DOM walk) agrees character for character
Cited by 2 provisions
Provisions in this library whose text cites Tex. Ins. Code § 843.404. Each shows the citation as that text prints it.
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