(A) No person may establish or operate a health maintenance organization in this State without first obtaining a certificate of authority from the director or his designee. A foreign corporation, upon compliance with the provisions of this chapter, may be issued a certificate of authority upon further conditions that:

1. (1) the applicant is registered as a foreign corporation to do business in this State;
2. (2) the applicant is subject to regulation of its financial condition by authorities in its state of domicile, including regular financial examination not less frequently than once every three years; and
3. (3) the applicant complies with such conditions as the director or his designee may prescribe with respect to the maintenance of books, records, accounts, and facilities in this State.

(B) Each application for a certificate of authority must be verified by an officer or authorized representative of the applicant, must be filed in a form prescribed by the director or his designee, and must set forth the following:

1. (1) a copy of the organizational documents of the applicant, such as the articles of incorporation, articles of association, partnership agreement, trust agreement, or other applicable documents, and all amendments;
2. (2) a copy of the bylaws and regulations, or similar document, if any, regulating the conduct of the internal affairs of the applicant;
3. (3) a list of the names, addresses, and official positions of the persons who are to be responsible for the management and conduct of the affairs of the applicant, including, but not limited to, all members of the board of directors, board of trustees, executive committee, or other governing board or committee, the principal offices in the case of a corporation, and the partners or members in the case of a partnership or association;
4. (4) a copy of any contract made or to be made between any providers or persons listed in item (3) and the applicant;
5. (5) a copy of the form of evidence of coverage to be issued to the enrollees;
6. (6) a copy of the form or group contract, if any, which is to be issued to employers, unions, trustees, or other organizations;
7. (7) financial statements showing the applicant's assets, liabilities, and sources of financial support. If the applicant's financial affairs are audited by independent certified public accountants, a copy of the applicant's most recent certified financial statements satisfies this requirement unless the director or his designee directs that additional or more recent financial information is required for the proper administration of this chapter;
8. (8) a description of the proposed method of marketing, a financial plan which includes a projection of operating results anticipated until the organization has had net income for at least one year, and a statement as to the sources of working capital as well as any other sources of funding;
9. (9) a power of attorney duly executed by the applicant appointing the director and his authorized deputies or designees, as the lawful attorney of the applicant in this State upon whom all lawful process in any legal action or proceeding against the health maintenance organization on a cause of action arising in this State may be served;
10. (10) a statement reasonably describing the geographic area to be served;
11. (11) a description of the complaint procedures to be utilized as required under Section 38-33-110;
12. (12) a description of the procedures and programs to be implemented to meet the quality of health care requirements in Section 38-33-40;
13. (13) a description of the mechanism by which enrollees have an opportunity to participate in matters of policy and operation under Section 38-33-60(2);
14. (14) any other information as the director or his designee may require to make the determination required in Section 38-33-40.

(C)

1. (1) An applicant or a health maintenance organization holding a certificate of authority granted hereunder shall, unless otherwise provided for in this chapter, file a notice describing any material modification of the operation set out in the information required by subsection (B). The notice must be filed with the director or his designee prior to the modification. If the director or his designee does not disapprove within thirty days of filing, the modification is considered approved.
2. (2) The department may promulgate regulations exempting from the filing requirements of item (1) those items he considers unnecessary.