Common use of Risk Reserve Clause in Contracts

Risk Reserve. 1. The Contractor shall maintain a risk reserve approved by the Department in the event the Contractor becomes insolvent. The risk reserve accounts must be separate from any operating accounts. The Contractor must demonstrate that it has arrangements in place in the amount of one (1) month's total capitation revenue and one (1) month's average payment to Network Providers to cover expenses in the event it becomes insolvent.

Risk Reserve. 1. The Contractor shall maintain a risk reserve approved by the Department in the event the Contractor becomes insolvent. The risk reserve accounts must be separate from any operating accounts. The Contractor must demonstrate that it has arrangements in place in the amount of one (1) month's total capitation revenue and one (1) month's average payment to Network Providers to cover expenses in the event it becomes insolvent.