(e) An MCO proposing a risk sharing arrangement with an IPA may not enter into any such arrangement without first obtaining approval from the commissioner or superintendent, as appropriate, in accordance with guidelines issued by the commissioner in accordance with section 98-1.5(b)(6)(v) of this Subpart or the superintendent in accordance with Regulation 164. To obtain the commissioner's approval, the MCO shall provide to the satisfaction of the commissioner the following:

1. (1) a current list of the owners, officers, directors, and limited liability company managers and members of the IPA;

2. (2) the complete text of the proposed contract(s), and all attachments thereto, which shall include provisions whereby:

   1. (i) the parties expressly agree to amend or terminate the agreement at the direction of the commissioner;
   2. (ii) the IPA will submit both quarterly and annual financial statements to the MCO and the MCO will notify the commissioner of any substantial change in the financial condition of the IPA; and
   3. (iii) the parties agree that all provider contracts shall contain a clause providing that the provider shall not, in the event of default by the IPA, demand payment from the MCO for any covered services rendered to the MCO's enrollees for which payment was made by the MCO to the IPA pursuant to the financial risk sharing agreement;
3. (3) in the event that the MCO contracts with the IPA to delegate management functions, a contract which complies with all the requirements of this Subpart;
4. (4) such information concerning the financial condition of the IPA and any providers participating in a risk sharing arrangement as the commissioner may require to make a determination, including information demonstrating that the IPA and any providers sharing risk with the IPA are financially responsible and capable of assuming such risk and have satisfactory insurance, reserves or other arrangements to support an expectation that they will meet their obligations to MCOs, providers and enrollees; and
5. (5) a demonstration by the MCO and the IPA, to the commissioner's satisfaction, that the elements of a proposed arrangement will not constitute improper incentives to providers, in accordance with physician incentive plan guidelines, and will not result in a deterioration in access to or the quality of care provided to an MCO's enrollees.