Public Chapter 65
SENATE BILL NO. 521
Substituted for: House Bill No. 1271
AN ACTTo amend Tennessee Code Annotated, Title 56, Chapter 2, relative to treatment of a non-profit health maintenance organization as a subsidiary by the corporation that created the organization for the purpose of determining the status of the organization as an admitted asset.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Title 56, Chapter 2, is amended by adding the following as a new section to be appropriately numbered:
A non-profit health maintenance organization which, with the approval of the commissioner, was created prior to January 1, 1981, by a corporation operated pursuant to Chapters 28 or 29 may be treated by such corporation as a subsidiary solely for the purpose of determining the status of the non-profit health maintenance organization as an admitted asset, provided that such corporation otherwise has a net worth at least equal to the capital and surplus requirements for an insurance company under Sections 56-2-114(a) and 56-2-115.
SECTION 2. This act shall take effect upon becoming a law, the public welfare requiring it.