20-1004. Issuance of certificate of authority

Issuance of a certificate of authority shall be granted by the director if the director is satisfied that the following conditions are met:

1. The persons responsible for conducting the affairs of the prepaid dental plan organization are competent and trustworthy and are professionally capable of providing or arranging for the provision of services offered.

2. The prepaid dental plan organization constitutes an appropriate mechanism to achieve an effective prepaid dental plan, in accordance with regulations issued by the director, that shall include at least the basic dental services appropriate to that plan as determined by the director.

3. The prepaid dental plan organization is financially responsible and may reasonably be expected to meet its obligations to members and prospective members. In making this determination the director shall consider at least:

(a) The financial soundness of the prepaid dental plan's arrangements for services and the schedule of charges used.

(b) Any agreement with an insurer, a hospital or a medical service corporation, a government or any other organization for insuring the payment of the cost of prepaid dental services or the provisions for automatic applicability of an alternative coverage in the event of discontinuance of the plan.

(c) The sufficiency of an agreement with providers for the provision of prepaid dental services.

4. Each officer responsible for conducting the affairs of the prepaid dental plan organization has filed with the director, subject to the director's approval, a fidelity bond in the amount of fifty thousand dollars.