(1)

1. (a) A health maintenance organization being organized or operating under this chapter shall have and maintain a minimum capital or minimum permanent surplus of $100,000.

2. (b) Each health maintenance organization authorized to do business in this state shall have and maintain qualified assets as defined in Subsection 31A-17-201(2) in an amount not less than the total of:

   1. (i) the health maintenance organization's liabilities;
   2. (ii) the health maintenance organization's minimum capital or minimum permanent surplus required by Subsection (1)(a); and

   3. (iii) the greater of:

      1. (A) the company action level RBC as defined in Subsection 31A-17-601(8)(b); or
      2. (B) $1,300,000.

(2)

1. (a) The minimum required capital or minimum permanent surplus for a limited health plan may not:

   1. (i) be less than $10,000; or
   2. (ii) exceed $100,000.

2. (b) The initial minimum required capital or minimum permanent surplus for a limited health plan required by Subsection (2)(a) shall be set by the commissioner, after:

   1. (i) a hearing; and

   2. (ii) consideration of:

      1. (A) the services to be provided by the limited health plan;
      2. (B) the size and geographical distribution of the population the limited health plan anticipates serving;
      3. (C) the nature of the limited health plan's arrangements with providers; and

      4. (D) the arrangements, agreements, and relationships of the limited health plan in place or reasonably anticipated with respect to:

         1. (I) insolvency insurance;
         2. (II) reinsurance;
         3. (III) lenders subordinating to the interests of enrollees and trade creditors;
         4. (IV) personal and corporate financial guarantees;
         5. (V) provider withholds and assessments;
         6. (VI) surety bonds;
         7. (VII) hold harmless agreements in provider contracts; and
         8. (VIII) other arrangements, agreements, and relationships impacting the security of enrollees.
3. (c) Upon a material change in the scope or nature of a limited health plan's operations, the commissioner may, after a hearing, alter the limited health plan's minimum required capital or minimum permanent surplus.