Section 15: Qualification for application.

(1) Without prejudice to the power of a State to establish a health scheme under section 13 of this Act, a person shall not qualify to apply to operate any form of health application insurance scheme in the country unless the scheme is registered as a company limited by guarantee or a limited liability company and complies with the provisions of all relevant laws in Nigeria.
(2) A private health insurance scheme or plan shall cover interested individuals, employers or employees of organisations in the private sector who may want to buy the scheme for supplementary benefits.
(3) A body corporate registered as a limited liability company under the Companies and Allied Matters Act and accredited by the Authority as a Health Management Care Organisation may operate a private health insurance scheme, subject to compliance with the provisions of law. [Act No. 3, 2020]
(4) A private health insurance scheme or plan shall be required as a condition for registration and licensing by the Authority to deposit with a bank accredited by the Authority an amount of money in an interest yielding account that the Authority shall prescribe as security for its members.
(5) The security referred to under subsection (4) shall be maintained throughout the period that the business of the private health insurance is carried on.
(6) The Authority may review the level of the security deposit.
(7) Where a private health insurance scheme or plan suffers a substantial loss, arising from liability to members and the loss cannot reasonably be met from its available resources, the Authority may, after ascertaining the nature of the claim, and on application made to it by the scheme, approve the withdrawal from the security deposit of the scheme of an amount sufficient to meet the liability, and an amount withdrawn shall be replaced by the scheme not later than 90 days after the date of the withdrawal.
(8) The security deposit is the asset of the private health insurance scheme or plan, but except as provided under subsection (7), it shall be available to the scheme only in the event of the closure or winding up of the health insurance business for the discharge of the liabilities arising out of policies transacted by the insurer and remaining un-discharged at the time of the closure or winding up of the insurance business.
(9) All private health insurance schemes or plans shall be regulated by the Authority.