Each HMO shall have administrative and managerial arrangements satisfactory to the superintendent as demonstrated by at least the following:

1. A. a policy-making body which exercises oversight and control over the HMO’s policies and personnel to assure that management actions are in the best interests of the HMO and its enrollees; and

2. B. personnel and systems sufficient for the HMO to organize, plan, control and evaluate the financial, marketing, health services, quality assurance program, administrative and management aspects of HMO. At a minimum, the HMO shall be managed by an executive whose appointment and removal are under the control of the HMO’s policy-making body.

   [6/1/98; Recompiled 11/30/01]