(1) Any
rehabilitation, liquidation, or conservation of a health
maintenance organization is the same as the rehabilitation,
liquidation, or conservation of an insurance company and must be
conducted under the supervision of the commissioner pursuant to
the law governing the rehabilitation, liquidation, or
conservation of insurance companies. The commissioner may apply
for an order directing the commissioner to rehabilitate,
liquidate, or conserve a health maintenance organization upon any
one or more grounds set out in RCW 48.31.030, 48.31.050, and 48.31.080. Enrolled participants have the same priority in the
event of liquidation or rehabilitation as the law provides to
policyholders of an insurer.
(2) For purposes of determining the priority of distribution
of general assets, claims of enrolled participants and enrolled
participants' beneficiaries have the same priority as established
by RCW 48.31.280 for policyholders and beneficiaries of insureds
of insurance companies. If an enrolled participant is liable to
any provider for services provided pursuant to and covered by the
health maintenance agreement, that liability has the status of an
enrolled participant claim for distribution of general assets.
(3) A provider who is obligated by statute or agreement to
hold enrolled participants harmless from liability for services
provided pursuant to and covered by a health care plan has a
priority of distribution of the general assets immediately
following that of enrolled participants and enrolled
participants' beneficiaries under this section.
[2003 c 248 § 18; 1990 c 119 § 4.]