§ 4402. Health maintenance organizations; application for certificate
of authority. 1. No person or groups of persons may operate a health
maintenance organization or issue a contract to an enrollee for
membership in a comprehensive health services plan without first
obtaining a certificate of authority from the commissioner.

2. In order to receive such a certificate of authority, a person or
persons, hereinafter designated as the applicant, intending to operate a
health maintenance organization shall file an application for such
certificate on such form as the commissioner shall prescribe, and shall
provide to the satisfaction of the commissioner the following:

(a) a copy of each of the basic organizational documents and
agreements of the applicant and all participating entities, including
all contracts and agreements relating to the provision of comprehensive
health services;

(b) a copy of the bylaws, rules and regulations on internal governing
documents of the applicant;

(c) a list of the names, addresses and official positions of the
persons comprising the applicant and all entities referred to in
paragraph (a) other than those possessing a valid operating certificate
under the provisions of article twenty-eight of this chapter, including
all owners of record or beneficial, all members of the governing body,
the officers and directors in the case of a corporation, and the
partners or members in the case of a partnership or corporation, and the
agent for service of process;

(d) a statement of the financial condition of the organization,
including, if appropriate, an income statement, balance sheet and
projected sources and uses of funds;

(e) a statement generally describing the proposed operation of the
health maintenance organization as to the location of its facilities,
the type and quantity of health care personnel engaged to provide
services, its quality assurance mechanism, its grievance procedure,
participating hospitals and such other data as may be required by the
commissioner;

(f) a copy of each enrollee contract filed with and approved by the
superintendent pursuant to section forty-four hundred six of this
article; and

(g) such other information as may be required by the commissioner to
make the determinations required in section forty-four hundred three of
this article.