Financial Standards for Prepaid Dental Plans

PURPOSE: This rule implements sections 354.705, 354.707, 354.710, 354.717, 354.720 and 354.722, RSMo relating to the financial requirements for the operation of prepaid dental plans. This rule is authorized under the provisions of section 354.723, RSMo. (1) Assets of a prepaid dental plan will be admitted and included in determining the financial condition of the prepaid dental plan only if included within one (1) or more of the following list of admissible assets: (A) Investable funds invested as follows: 1. Any asset or investment described in and limited by sections 376.291–376.307, RSMo; and 2. Any asset or investment representing the purchase, lease, construction, renovation, operation or maintenance of facilities from which dental benefits under the plan will be performed or property as may reasonably be needed for the principal office of the prepaid dental plan or for other purposes as may be necessary in the transaction of the business of the plan; and (B) Other assets as follows: 1. Reinsurance recoverables; 2. Data processing system; 3. Premium receivable from any agency of this state, of any political subdivision of this state or of the United States; 4. Accrued interest receivable, if according to statements of statutory accounting principles for prepaid dental plans such interest is probably collectable; 5. Inventory of dental supplies, but only if according to statements of statutory accounting principles for prepaid dental plans such supplies are used by the prepaid dental plan in connection with the direct provision of dental services; 6. Funds paid by the prepaid dental plan into escrow for the purpose of purchasing or building offices or facilities from which dental benefits under the plan will be performed, but only if according to statements of statutory accounting principles for prepaid dental plans such offices or facilities are for use by the prepaid dental plan in connection with the direct provision of health care services; 7. Goodwill and other intangible assets. Any goodwill or intangible asset must be amortized on a straight-line basis over a period of five (5) years or less. Any goodwill or intangible asset accrued after April 1, 1990 will be admissible only with the prior consent of the director; 8. Amounts receivable on account of coordination of benefits or subrogation, limited to the actual amounts receivable or the amounts received during the prior year, whichever is less; 9. Any other asset expressly approved in writing by the director. (2) No asset shall be admissible except as stated in section (1) and in accordance with the statements of statutory accounting principles. (3) Liabilities shall be determined in accordance with the statements. (4) The director will consider compliance with the standards of section 375.539, RSMo when evaluating a prepaid dental plan under section 354.722, RSMo. AUTHORITY: section 354.723, RSMo 2016.* This rule was previously filed as 4 CSR 190-11.280. Original rule filed Dec. 12, 1989, effective April 1, 1990. Amended: Filed Dec. 14, 2000, effective July 30, 2001. Amended: Filed Oct. 30, 2018, effective April 30, 2019. *Original authority: 354.723, RSMo 1987.