(a) A delegating HMO must:(1) identify all responsibilities relating to the function being delegated;(2) create an agreement that enables the HMO and department to monitor both the delegated entity's financial solvency and performance or subsequent delegation of all delegated functions; and(3) retain ultimate responsibility for ensuring that all delegated functions are performed in compliance with applicable statutes and rules.(b) This subchapter applies to all contracts entered into or renewed on and after the effective date of these rules.(c) This subchapter does not apply to a group model HMO, as defined in Insurance Code §843.111 (concerning Group Model Health Maintenance Organizations).