Title 17, Title 17: CORPORATIONS AND INSTITUTIONS FOR FINANCE AND INSURANCE

17:48E-4. Certificate of authority a. A health service corporation, other than a health service corporation which is formed as the result of a merger of a medical service corporation and a hospital service corporation, which seeks a certificate of authority shall file in the Depa…

17:48E-41. Health service corporation, exemption from taxes A health service corporation subject to the provisions of this act is hereby declared to be a charitable and benevolent institution and all of its funds shall be exempt from every State, county, district, municipal and s…

17:48E-42. For-profit corporations excluded The provisions of this act shall not apply to any corporation carrying on the business of life, health or accident insurance, for profit or gain, or to fraternal beneficiary associations as defined in section 1 of P.L. 1959, c. 167 (C. …

17:48E-43. Subject to review All determinations of the commissioner made under the provisions of this act shall be subject to review by the Superior Court in a proceeding in lieu of prerogative writ. L. 1985, c. 236, s. 43, eff. July 15, 1985.

17:48E-44. Rules, regulations The commissioner, pursuant to the "Administrative Procedure Act," P.L. 1968, c. 410 (C. 52:14B-1 et seq.), shall promulgate rules and regulations as are necessary to effectuate the provisions of this act. L. 1985, c. 236, s. 44, eff. July 15, 1985.

17:48E-45. Definitions relative to conversion > 1. As used in sections 2 through 4 of this act: "Commissioner" means the Commissioner of Insurance. "Conversion" means the conversion of a health service corporation to a domestic mutual insurer in accordance with the provisions of …

17:48E-46. Conversion of health service corporation to domestic mutual insurer 2. A health service corporation which is organized pursuant to P.L.1985, c.236 (C.17:48E-1 et seq.) may convert to a domestic mutual insurer by complying with the provisions of sections 2 through 4 of …

17:48E-46.1. Findings, declarations relative to the reorganization of a health service corporation 1. The Legislature finds and declares that: a. It is in the interest of the subscribers of the health service corporation and the State of New Jersey that the health service corpora…

17:48E-46.10. Plan of dissolution 10. Upon any voluntary dissolution of a mutual holding company in accordance with N.J.S.15A:12-2, 15A:12-3, 15A:12-4, 15A:12-5, 15A:12-6, 15A:12-7, or section 19 of P.L.1992, c.65 (C.17B:32-49), the mutual holding company shall adopt a plan of di…

17:48E-46.11. Annual statements; report to the Governor 11. a. A mutual holding company shall file with the commissioner an annual statement pursuant to applicable laws of this State. b. The mutual holding company shall, on an annual basis, and in a form and manner prescribed by …

17:48E-46.12. Public records 12. a. The application submitted pursuant to section 5 of P.L.2020, c.145 (C.17:48E-46.5) shall be a public record, except for the following documents, which shall be confidential and not public records: (1) documents deemed confidential by statute or…

17:48E-46.13. Initial and annual assessments 13. a. Following regulatory approval pursuant to section 5 of P.L.2020, c.145 (C.17:48E-46.5) and the establishment of a mutual holding company, the mutual holding company, or any affiliates benefiting from the establishment of a mutua…

17:48E-46.14. Mutual holding company 14. A mutual holding company formed pursuant to P.L.2020, c.145 (C.17:48E-46.1 et al.) shall not convert to a for-profit stock holding company. The provisions of P.L.2001, c.131 (C.17:48E-49 et seq.) providing for conversion of a health servic…

17:48E-46.15. Board of the mutual holding company; membership, transitional period, diversity 15. a. The board of the mutual holding company shall be constituted of 22 directors as follows: (1) 13 directors shall be elected, as provided in the bylaws, one of whom shall be the cha…

17:48E-46.16. Full-time employees maintained for 36 months following transition 16. a. Upon the formation of a mutual holding company, the total number of full-time employees that were employed within a mutual holding company system shall be maintained for a transition period of …

17:48E-46.17. Severability 19. a. The provisions of P.L.2020, c.145 (C.17:48E-46.1 et al.) shall be severable; and if any phrase, clause, sentence, or provision is deemed unenforceable, the remaining provisions of P.L.2020, c.145 (C.17:48E-46.1 et al.) shall be enforceable. b. Th…

17:48E-46.2. Definitions relative to the reorganization of a health service corporation 2. As used in P.L.2020, c.145 (C.17:48E-46.1 et al.): "Assessment" means an initial and a limited duration assessment made upon the mutual holding company system pursuant to section 13 of P.L.…

17:48E-46.3. Mutual holding company, not for pecuniary profit, mission 3. a. A mutual holding company organized pursuant to P.L.2020, c.145 (C.17:48E-46.1 et al.) shall not be established as a company organized for pecuniary profit and shall retain the designation as a charitable…

17:48E-46.4. Health service corporation to reorganize into mutual holding company system 4. a. A health service corporation organized pursuant to P.L.1985, c.236 (C.17:48E-1 et seq.) may reorganize to create a mutual holding company system pursuant to a plan of reorganization at …

17:48E-46.5. Health service corporation applicationto form mutual holding company system 5. a. A health service corporation may submit an application to the commissioner to form a mutual holding company system. Upon submission of an application to the commissioner, a health servi…

17:48E-46.6. Monitoring mutual holding company's operations 6. A mutual holding company system shall be considered an insurance holding company system and subject to P.L.1970, c.22 (C.17:27A-1 et seq.). The commissioner shall possess supervisory powers with respect to the insuran…

17:48E-46.7. Investments; supplier program; mutualization; reorganization plans 7. a. A mutual holding company or a non-insurance subsidiary may, alone or together, make any lawful investments including directly or indirectly acquiring or otherwise holding the stock or other owne…

17:48E-46.8. Non-obligation of distribution payment to members, policyholders 8. Neither the adoption nor the implementation of a plan of mutualization and reorganization shall be deemed to give rise to any obligation by or on behalf of any entity in the mutual holding company sy…

17:48E-46.9. Membership in mutual holding company 9. a. Membership in a mutual holding company shall be determined in accordance with the mutual holding company's articles of incorporation and bylaws and may be based upon: (1) the amount of health insurance policies in force with…

17:48E-47. Filing, approval of conversion plan 3. a. Upon the affirmative vote of the board of directors, the plan for conversion to domestic mutual insurer shall be filed with the commissioner for approval. A public hearing thereon shall be held within 30 days after the filing, …

17:48E-48. Directors and officers, terms 4. a. Public members of the board of directors of the health service corporation shall serve as directors of the domestic mutual insurer to the end of the term for which they were appointed and thereafter may be elected as directors of the…

17:48E-49 Definitions relative to conversion of health service corporation to domestic stock insurer. 1. As used in this act: "Affiliate" or "affiliated" has the meaning set forth in subsection a. of section 1 of P.L.1970, c. 22 (C.17:27A-1). "Alternative foundation plan" means t…

17:48E-5. Merger procedure Upon the merger of a medical service corporation into a hospital service corporation, the surviving corporation shall qualify as a health service corporation, and the surviving corporation need not obtain a new charter or certificate of authority to act…

17:48E-50 Procedure for conversion. 2. a. A health service corporation may convert to a domestic stock insurer by complying with the provisions of sections 2 through 14 and section 19 of this act. b. To convert to a domestic stock insurer, the board of directors of a health servi…

17:48E-51 Filing of application. 3. a. The health service corporation shall file with the commissioner an application pursuant to subsection b. of this section for approval of, and permission to convert pursuant to, a plan of conversion. Concurrent with the filing of the applicat…

17:48E-52 Approval of plan, certificate of authority. 4. a. The commissioner shall approve the plan of conversion and issue a certificate of authority to the converted insurer to transact business in this State as a domestic stock insurer only if the commissioner finds all of the…

17:48E-53 Issuance of subsequent order. 5. The order of the commissioner issued pursuant to section 4 of this act shall not take effect unless the commissioner issues a subsequent order finding that: a. the Superior Court has entered an order pursuant to subsection f. of section …

17:48E-54 Transfer of fair market value. 6. a. At or before the effective time, the entire fair market value of the health service corporation, exclusive of any shares of the converted insurer or any parent corporation issued pursuant to subsection e. of this section, shall be tr…

17:48E-55 Continuation of health service corporation. 7. a. The legal existence of the health service corporation shall not terminate, and the converted insurer shall be a continuation of the health service corporation. The conversion shall only be a change in identity and form o…

17:48E-56 Conversion of policies. 8. a. The policies of the health service corporation shall be converted to policies of the converted insurer without any further action on the part of the converted insurer. b. Policies of the health service corporation that were issued and remai…

17:48E-57 Receipt of compensation contingent upon approval of plan prohibited. 9. No director, officer, agent or employee of the health service corporation shall receive any fee, commission or other valuable consideration that is contingent upon the plan of conversion becoming ap…

17:48E-58 Documents considered public records; exceptions. 10. All applications, reports, plans and other documents to be filed or submitted under section 3 and section 19 shall be public records, except for the following documents, which shall be confidential and not public reco…

17:48E-59 Conversion effective; conditions. 11. The conversion shall be effective at midnight on the date provided for in the certificate of incorporation of the converted insurer or such other time as the commissioner may agree. On or prior to the effective time of the conversio…

17:48E-6 Board of health service corporation formed through merger. 6. The board of a health service corporation which is formed as the result of a merger between a medical service corporation and a hospital service corporation shall be composed of not more than 17 members as pro…

17:48E-60 Abandonment, amendment of plan of conversion. 12. The health service corporation may, by action of not less than two-thirds of its board of directors, abandon or amend the plan of conversion at any time before the effective time. No amendment made after the public heari…

17:48E-61 Directors, officers continue to serve. 13. The directors and officers of the health service corporation, unless otherwise specified in the plan of conversion, shall serve as the directors and officers of the converted insurer until new directors and officers are duly el…

17:48E-62 Participation of Attorney General. 14. The Attorney General has the right to participate in any proceeding before the commissioner under this act and has the right to receive any documents or other information received by the commissioner in connection with the proceedi…

17:48E-63 Orders, rules, regulations. 15. The commissioner may issue orders as necessary to effect the conversion and promulgate rules and regulations to implement the provisions of this act pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.). L.2…

17:48E-64 Construction of act. 16. a. Nothing in this act shall be construed to limit the existing authority of the Attorney General, except that the procedures set forth in this act shall be exclusive. b. A health service corporation shall reimburse the Attorney General and the …

17:48E-65 Requirements prior to action constituting material change in form. 17. A health service corporation shall satisfy the requirements of sections 18 and 19 of this act prior to engaging in any actions that constitutes or may constitute a material change in form. Any materi…

17:48E-66 Notification of action constituting material change in form, procedure. 18. a. Except for a conversion pursuant to sections 2 through 14 and section 19 of this act, a health service corporation shall notify the Attorney General and the commissioner of the health service…