Effective - 28 Aug 1987
354.707. Capital, surplus, security required — cash, securities, bond to be deposited or filed with director, director to return deposit, when — security subject to final judgments — security not required for prepaid dental plans funded by government — director may waive capital, surplus, security requirements, when. — 1. No prepaid dental plan corporation may commence or continue to do business with a capital of less than fifty thousand and a surplus of less than fifty thousand dollars.
2. No prepaid dental plan corporation may commence or continue to do business until the company has transferred to and deposited with the director, for the security of its enrollees, cash, securities, or a bond in the amount of the minimum capital of fifty thousand dollars. Such securities or bond shall be of a type approved by the director. The director shall not receive securities at an amount above their par value or above their current market value, whichever is less. If the market value of the securities on deposit falls below the minimum capital amount of fifty thousand dollars, the company shall deposit additional securities to equal the minimum amount.
(1) The cash or securities representing the deposit required by this section shall be deposited with the director who shall give receipts for all securities so deposited with him to the prepaid dental care corporation. The director shall upon the receipt of such securities deposit the same, in the presence of an authorized officer of the depositing corporation, in a safety deposit box accessible only to the director or his representative and an authorized employee of the corporation, or in the vault of any bank, trust company, or safety deposit company in the state of Missouri to be selected by the director, and the depositing corporation shall pay the fees for such boxes. So long as the depositing corporation continues solvent, the director shall permit such corporation to collect and receive the interest and dividends on the securities so deposited, and, from time to time, withdraw any such securities on depositing other acceptable securities in the place of those so withdrawn. If the director willfully fails, refuses, or neglects to faithfully keep, deposit, and account for any such securities received by him, or willfully fails, refuses, or neglects to furnish proper certificate of securities so held by him, the director shall be responsible therefor upon his official bond, and suit may be brought upon such bond by any person damaged by such failure, refusal, or neglect.
(2) An unpaid final judgment arising upon an enrollee contract or contract certificate shall be a lien on the deposit prescribed by this subsection, subject to execution after thirty days from the entry of final judgment. If the deposit is reduced, it shall be replenished within twenty days by the prepaid dental care corporation.
(3) Upon the liquidation or dissolution of a prepaid dental plan corporation and the satisfaction of all its debts and liabilities, any balance remaining of the deposit shall be returned by the director to the prepaid dental plan corporation.
(4) The deposit prescribed by this subsection shall not apply with respect to a prepaid dental plan corporation which is funded by a federal, state, or municipal government or by any political subdivision thereof to the extent and for such period of time that the prepaid dental plan corporation can demonstrate to the director the presence of operational commitments from such sources equivalent to such deposit.
3. The director may waive any of the requirements of subsection 1 or 2, or both, of this section for any prepaid dental plan corporation, if it is shown to his satisfaction that such corporation possesses not less than fifty thousand dollars equity in unencumbered fixed assets.
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(L. 1987 S.B. 272 § 5)
Structure Missouri Revised Statutes
Title XXIII - Corporations, Associations and Partnerships
Chapter 354 - Health Services Corporations — Health Maintenance Organizations — Prepaid Dental Plans
Section 354.010 - Definitions.
Section 354.015 - Health services corporations, laws applicable to — exceptions.
Section 354.020 - Preexisting health services corporation to amend articles, effect of.
Section 354.025 - Corporate purposes and authority.
Section 354.030 - For-profit corporations excluded from act.
Section 354.035 - Procedure for organization of corporation.
Section 354.040 - Articles of incorporation, required information and contents.
Section 354.045 - Issuance of certificate, effect of.
Section 354.050 - General powers of corporation.
Section 354.055 - Certificate of authority required — expiration of, extended how.
Section 354.060 - Director to issue certificate, when.
Section 354.065 - Articles of incorporation, how amended — copy to director, when.
Section 354.070 - Certificate of authority automatically extended, when.
Section 354.075 - Capital required to do business.
Section 354.080 - Reserves required, how computed.
Section 354.090 - Health services corporation contracts, purposes, parties to.
Section 354.095 - Limitation of membership and benefits — certain benefits to be provided, when.
Section 354.105 - Annual report required, contents of.
Section 354.120 - Rules and regulations by director authorized — procedure, review.
Section 354.130 - Exemption from certain taxes, exceptions.
Section 354.140 - Dissolution, liquidation or rehabilitation of corporation, procedure for.
Section 354.145 - Appeal from director's actions or decisions, how taken.
Section 354.150 - Fees — waiver, when.
Section 354.155 - Disclaimer as to nonhealth services corporations.
Section 354.165 - Certain organizations exempt.
Section 354.175 - Wage continuation plans by employer exempt.
Section 354.180 - Administrative order, director to issue, when.
Section 354.190 - Examinations, procedures.
Section 354.195 - Records of examination, duty to keep.
Section 354.200 - Examinations, false testimony, penalty.
Section 354.205 - Examinations — costs, how paid.
Section 354.210 - Director may seek relief, when.
Section 354.215 - Examiner's sick leave to apply to health services corporations.
Section 354.220 - Director may bring suit to recover fees or sums.
Section 354.230 - License required for enrollment representative.
Section 354.235 - Enrollment representative — license issued when, qualifications.
Section 354.240 - Nonresident may be licensed — examination waived, when.
Section 354.265 - Nonrenewable temporary license issued, when.
Section 354.275 - Violations by enrollment representatives, penalties.
Section 354.300 - Certificate of authority suspended or revoked, when.
Section 354.305 - Corporation advertising assets also to show liabilities — penalties.
Section 354.330 - Public official failing to perform duties as to investment violations, penalty.
Section 354.335 - Damages allowed if corporation without reasonable cause refuses to pay.
Section 354.350 - Fraudulent or bad faith conduct — investigation by division — hearing, procedure.
Section 354.357 - Receivership, grounds, procedure.
Section 354.362 - Newborn child coverage required — notice of birth, when, effect.
Section 354.380 - Certain provisions of insurance law to be applicable.
Section 354.400 - Definitions.
Section 354.407 - PACE projects not deemed health maintenance organizations, when.
Section 354.415 - Powers of organization.
Section 354.420 - Advisory panels to afford enrollees participation in policy decisions.
Section 354.425 - Bonding of officers who disburse or invest funds — bond requirements.
Section 354.435 - Annual reports filed with director, when — content — forms.
Section 354.440 - Information to be available to enrollees.
Section 354.441 - Disclosures to subscribers shall not be prohibited or restricted.
Section 354.442 - Disclosure information to enrollees required, when.
Section 354.444 - Administrative orders for violations — voluntary forfeitures, civil actions.
Section 354.445 - Complaints by enrollees, organization to establish system.
Section 354.450 - Investments authorized.
Section 354.455 - Deposit required, how made.
Section 354.462 - Enrollee, grounds for disenrollment.
Section 354.464 - Names not authorized for use, exceptions.
Section 354.465 - Examinations by division, when — costs, how paid.
Section 354.470 - Suspension or revocation, when — effect.
Section 354.485 - Rules and regulations authorized.
Section 354.490 - Certificate of authority, denial, suspension or revocation, grounds — procedure.
Section 354.495 - Fees to be paid to director.
Section 354.500 - Conferences called by director as to suspected or potential violations.
Section 354.505 - Laws regulating insurance or health service corporations not to apply, exceptions.
Section 354.510 - Public documents, all filings and required reports.
Section 354.520 - Mergers, consolidations, control of organization, requirements.
Section 354.530 - Severability clause.
Section 354.536 - Continuation of dependent child coverage, when — dependent child defined.
Section 354.545 - Exempt plans and companies.
Section 354.550 - Laws not applicable to community health companies.
Section 354.551 - Health maintenance organizations may offer point of service (POS) riders, when.
Section 354.552 - Community-based health maintenance organizations, requirements.
Section 354.556 - Trustees, vacancies, elections.
Section 354.558 - Materials provided to prospective purchasers.
Section 354.559 - Disclosure to members, restrictions and prohibitions.
Section 354.562 - Grievance procedures, rulemaking authority.
Section 354.563 - Medicare rules to apply to community-based health maintenance organizations, when.
Section 354.570 - Rulemaking — procedure.
Section 354.600 - Definitions.
Section 354.609 - Termination of a contract, procedure.
Section 354.612 - Continuation of care after provider termination, when.
Section 354.615 - Referrals to appropriate providers, when.
Section 354.621 - Intermediary and participating provider requirements.
Section 354.627 - Liability of a health carrier, when.
Section 354.636 - Contract requirements after January 1, 1998.
Section 354.650 - Definitions.
Section 354.652 - Designation as essential community provider, procedure, qualifications.
Section 354.654 - Department of health and senior services, duties — rulemaking authority.
Section 354.656 - Inclusion of essential community providers in health care network, exceptions.
Section 354.700 - Definitions.
Section 354.704 - Application for certificate of authority, content.
Section 354.705 - Certificate of authority granted, when.
Section 354.717 - Director, powers — financial examinations, when, by whom made and paid.
Section 354.720 - Annual report, required, content.
Section 354.721 - Agents, registration required — rules and regulations authorized.
Section 354.723 - Rulemaking authorized.
Section 354.725 - Exclusion, labor organization's health plans.