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Can I offer a freemium version of my product or service in West Virginia? What are the requirements?

Offering Freemium Version of Product or Service in West Virginia

If you are planning to offer a freemium version of your product or service in West Virginia, there are no specific licensing or renewal requirements that you need to comply with. However, if you are offering a discount medical plan organization, you need to obtain a license pursuant to W. Va. Code §33-15E-4 and this rule to continue conducting business and prior to commencing operations in the state of West Virginia [1.1].

Requirements for Obtaining a License as a Discount Medical Plan Organization

To obtain a license to conduct business as a Discount Medical Plan Organization in West Virginia, you need to submit the following [1.1]:

  • A fully completed Discount Medical Plan Organization Application for License (Form DMP-1)
  • A $300 non-refundable application fee
  • An original certificate of authority from the state of domicile
  • Copies of all registration documents and licenses required by the State of West Virginia
  • Articles of Incorporation and by-laws
  • A description of the proposed method of marketing, including types of discounts to be offered and the advertising media to be used, including the procedures in place to approve advertising, prior to use
  • An audited financial statement prepared in accordance with generally accepted accounting principals certified by an independent certified public accountant, including the balance sheet, income statement and statement of changes in cash flow for the preceding year or if an affiliate of a parent entity that is publicly traded, those audited financial statements and a written guarantee that the minimum capital as set forth in W. Va. Code §33-15E-5 will be met by the parent entity
  • List of names, official positions and addresses of all persons responsible for the conduct of the organization’s affairs, including company officers, directors and shareholders owning ten percent or more shares in the organization
  • The number of discount medical plan members in the state
  • A copy of the form of all provider agreements offering medical or ancillary services to its members
  • A list of all participating pharmacies offering discounts on prescription drugs to plan members or an Internet website address where such a list can be accessed by the Commissioner
  • Organization chart including all entities within the ultimate parent company structure, if applicable
  • Biographical affidavits for company officers, directors and shareholders owning ten percent or more shares in the organization
  • Proof of compliance with the net worth requirement of $150,000
  • A surety bond in an amount not less than $35,000 for the benefit of any person that is damaged by any violation of W. Va. Code §33-15E, et seq. and this rule
  • A description of the member complaint procedures

License Renewal Requirements for Discount Medical Plan Organizations

The license of a Discount Medical Plan Organization must be renewed annually on or before the thirty first day of May next following the date of issuance. The renewal fee shall be in an amount of $100. If a Discount Medical Plan Organization fails to pay the renewal fee, the nonpayment shall result in a lapse of the license. A Discount Medical Plan Organization that allows its license to lapse may, within twelve months from the due date of the renewal fee, reinstate the same license, however, a penalty in the amount of $100 shall be required for any renewal fee received after the due date. Along with the renewal fee, each licensee shall provide the Commissioner with the following in order to renew their license [1.1]:

  • An audited financial statement prepared in accordance with generally accepted accounting principals certified by an independent certified public accountant, including the balance sheet, income statement and statement of changes in cash flow for the preceding year. If the Discount Medical Plan Organization is an affiliate of a parent entity that is publicly traded, those audited financial statements and a written guarantee that the minimum capital will be met by the parent entity
  • Any changes in the list of names and addresses of all persons responsible for the conduct of the organization’s affairs, including company officers, directors and shareholders owning ten percent or more shares in the organization
  • The number of discount medical plan members in the state
  • Proof of compliance with the net worth requirement of $150,000

Waiver of Initial Licensure Fees

If you are a low-income individual or a member of one or more military families, you may seek a waiver of the initial licensure fee for licensure as a professional counselor or marriage and family therapist by submitting with your complete application a low-income waiver of initial licensure fee form or a military service verification form, respectively [2.1][4.1][4.2].

Conclusion

In summary, there are no specific licensing or renewal requirements for offering a freemium version of your product or service in West Virginia. However, if you are offering a discount medical plan organization, you need to obtain a license and comply with the requirements outlined in W. Va. Code §33-15E-4 and this rule. Additionally, if you are a low-income individual or a member of one or more military families seeking licensure as a professional counselor or marriage and family therapist, you may seek a waiver of the initial licensure fee by submitting the appropriate form and documentation.

Source(s):
Jurisdiction

West Virginia