NJ A6175

Allows dental service corporations (DSCs) to form nonprofit parent corporations by submitting an application to the Commissioner of Banking and Insurance, including a detailed plan, proposed corporate structure diagrams, list of directors/officers, and demonstration of solvency compliance

Requires the commissioner to review applications within 30 days for completeness and approve or disapprove within 120 days; applications may only be denied if contrary to law, detrimental to DSC safety/soundness, or would substantially reduce subscriber services

Parent corporations must maintain nonprofit, charitable status and are prohibited from converting to for-profit entities, redomesticating to other states, transacting business as risk-bearing entities, or underwriting securities offerings

Permits DSCs to make distributions to parent corporations, with extraordinary distributions (exceeding 15% of surplus or net income from the prior year) requiring 30-day advance notice and commissioner approval

Mandates annual enterprise risk reporting by April 1 each year identifying material risks among the parent corporation and subsidiaries that could pose enterprise risk to the DSC, with commissioner examination authority over affiliates