Rescission of Bulletin 93-7 (Major Modification Filing as to Dividends)

[LOGO] State Of Ohio Department of Insurance 2100 Stella Court Columbus, Ohio 43266-0566 George V. Voinovich Governor Harold T. Duryee Director # BULLETIN 93-7 TO: All Health Maintenance Organizations with a Certificate of Authority to Operate in Ohio FROM: Harold T. Duryee, Superintendent of Insurance SUBJECT: Major Modification Filing as to Dividends DATE: November 19, 1993 There has been some confusion over whether dividends or other distributions to shareholders require a major modification filing under Ohio Revised Code Section 1742.03. Please be advised that the Ohio Department of Insurance requires a major modification filing when an HMO plans a dividend or distribution to its shareholders with a fair market value, together with that of other dividends or distributions made within the preceding twelve months, exceeding fifteen per cent of the HMO's total net worth as of the preceding thirty-first day of December, but shall not include pro rata distributions of any class of the HMO's own securities. No HMO shall pay or make any such dividend or distribution and the declaration of any such dividend or distribution shall be conditional and shall confer no rights upon shareholders until thirty days after the Superintendent has received the major modification filing and has either approved or not disapproved the filing within the thirty-day period. Harold T. Duryee Superintendent of Insurance Accredited by the National Association of Insurance Commissioners (NAIC) STATE OF OHIO DEPARTMENT OF INSURANCE IN THE MATTER OF: : RESCISSION OF BULLETIN 93-7 : # ORDER AND JOURNAL ENTRY Bulletin 93-7, issued in 1993, concerning major modification filings as to dividends, has been superceded by Ohio Revised Code Section 3901.34. IT IS THEREFORE ORDERED that Bulletin 93-7 be and hereby is rescinded. This Order is hereby entered in the Journal of the Ohio Department of Insurance. 7-9-98 Date Harold T. Duryee Superintendent of Insurance