Section 123210 Of Chapter 3. Catastrophic Health Insurance From California Health And Safety Code >> Division 106. >> Part 1. >> Chapter 3.
123210
. (a) The term of any contract entered into pursuant to
subdivision (a) of Section 123185 shall be determined by the
director, but shall not exceed three years.
(b) The contract shall contain a provision authorizing the
director to terminate the contract upon giving 60 days' written
notice to the insurer of any of the following causes for termination:
(1) The department has determined that management practices of the
insurer or the current financial condition of the insurer interferes
with the efficient and timely payment of catastrophic health
insurance benefits.
(2) Continuing failure of the insurer to timely pay the benefits
of its policies of catastrophic health insurance or provide
catastrophic health insurance services in accordance with the
contract.
(3) Other continuing unsatisfactory performance by the insurer
under the contract, based upon complaints received from insureds or
other sources, if the insurer has failed to take reasonable,
effective, and prompt actions to resolve the complaints.
(c) The contract shall contain a provision authorizing the
director to terminate the contract without cause upon any annual
anniversary date of the contract by giving at least 60 days' notice
to the insurer.
(d) The director may give up to 120 days' notice to terminate if
it is determined to be in the best interest of plan participants.
(e) The director shall annually certify that participating
providers meet the conditions of the program. In carrying out this
requirement, the director shall consult with the Department of
Insurance to obtain any audits performed by those agencies that may
be used in evaluating the performance of each provider.