Florida Office of Insurance Regulation Issues Guidance to HMOs on Financial Solvency Reporting Requirements

Above:  Colodny Fass’ Donovan Brown Notes Florida Regulatory Guidance on HMO Financial Solvency Reporting Requirements

Issued May 15, 2015 by the Florida Office of Insurance Regulation (“OIR”), Informational Memorandum OIR-15-05M provides guidance on financial solvency reporting requirements to all Health Maintenance Organizations (“HMOs”) operating in Florida that are required to file financial statements with the OIR’s Life and Health Financial Oversight business unit.

In the Memorandum, the OIR stated that HMOs are required to maintain continuous compliance with Florida laws and regulations, the most recent National Association of Insurance Commissioners’  (“NAIC”) Accounting Practices and Procedures Manual, and individual solvency and reporting requirements at all times, not just at the end of each reporting period.

NAIC resources on financial statement filings, including information on the NAIC Accounting Practices and Procedures Manual for guidance concerning statutory accounting principles, can be found by clicking here. 

In addition, the OIR reminded HMOs that, pursuant to Florida law, except with the OIR’s written permission, HMOs are not allowed to solicit or accept new or renewal insurance contracts or provider contracts after such time an officer or director knew or reasonably should have known that the HMO was impaired or insolvent.

To read the complete Informational Memorandum, click here.

Should you have any questions or comments, please contact G. Donovan Brown at Colodny Fass (+1 850 545 8864 or DBrown@ColodnyFass.com).

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