With respect to any significant business transaction by the HMO with a party-in-interest:

1. A. The HMO shall disclose to its policy-making body all material facts concerning the transaction and the party-in-interest’s interest in the transaction.
2. B. The policy-making body shall make such facts and the policy-making body’s actions, if any, part of its minutes or, if no minutes are required of the policy-making body, shall otherwise make them a record of the HMO.

3. C. The HMO shall hand deliver or send by certified mail to the superintendent prior notice of the transaction. Such notice shall be given with reasonable time for the superintendent to object. The superintendent shall approve or disapprove such transaction within 30 days after receipt of the notice, and if no approval or disapproval has been granted within 30 days, the transaction shall be deemed approved by the superintendent.

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