1. (a) Each plan shall maintain internal procedures that provide one or more of its principal officers on at least a monthly basis with the information necessary for the reports required pursuant to Rule 1300.84.3.

   1. (A) Be unable to meet its obligations as they become due; or
   2. (B) Have tangible net equity below the amount required by subdivisions (a) or (b) of Rule 1300.76, as applicable.
   3. (2) The notification by the plan to the Department shall be made in writing within 5 business days of any determination made pursuant to subsection (b) of this Rule.

   (b)(1) Each plan shall notify the Department if, based on a review of its financial and business records, it determines that currently or within 30 business days the plan will:

Note: Authority cited: Sections 1344, 1348.95 and 1384, Health and Safety Code. Reference: Sections 1348.95 and 1384, Health and Safety Code.

History

1. New section filed 5-18-2022; operative 7-1-2022 (Register 2022, No. 20).