Section 98-3.16 - Effective date and special rules

Section 98-3.16 Effective date and special rules.

(a) Effective date.

(1) The requirements of this Subpart, subject to subdivision (b) of this section, shall apply beginning with the reporting period ending December 31, 2015.

(2) A MCO acquired in a business combination shall have two calendar years following the date of acquisition or combination to comply with this Subpart.

(b) Special rules.

(1) Changes in required number of independent audit committee members.

(i) A MCO that is required to have a higher number of independent audit committee members due to changes in premium shall have one year following the year the threshold is exceeded to comply with the independence requirements; and

(ii) A MCO that becomes subject to a different independence requirement as a result of a business combination shall have one calendar year following the date of acquisition or combination to comply with the newly effective independence requirements.

(2) Upon written application by any MCO, the Commissioner may, if not inconsistent with any statutory requirement to the contrary, extend a filing date or grant an exemption from compliance with any and all provisions of this Subpart if the Commissioner finds, upon review of the application, that compliance with this Subpart would constitute a financial or organizational hardship upon the MCO. A MCO shall file an application for a hardship exemption with the Commissioner prior to the event or period for which the extension or exemption is being requested. The MCO shall file, with its annual statement filing, both its request for relief and the approval of that request with the states that it is licensed in or doing business in and the NAIC. If a nondomestic state accepts electronic filing with the NAIC, the MCO shall file the approval in an electronic format acceptable to the NAIC.

Effective Date: 
Tuesday, November 10, 2015