Title 56, Insurance

(a) Any corporation organized and governed by this chapter prior to July 1, 1981, should have the board of directors of the corporation composed of the following groups in equal numbers:(1) Administrators or trustees of hospitals that have contracted with the corporation to rende…

A corporation, subject to this chapter, may issue contracts only when the department has, by formal license, authorized it to do so.

(1) Application for the license shall be made on a form approved by the commissioner, containing such information as the commissioner deems necessary. Each application for the license shall be accompanied by copies of the following documents:(1) Certificate of incorporation;(2) B…

(1) The commissioner shall issue a license upon compliance with this chapter and other proper requirements of the commissioner, and upon being satisfied that:(1) The applicant is established as a bona fide nonprofit hospital service corporation with or without the right to provid…

The amount provided as working capital shall only be provided by individuals or groups who have no financial interest in the activities of the hospital service corporations, or by any member hospitals. Interest charged for the capital, if any, shall not exceed six percent (6%), a…

All acquisition and administrative expenses in connection with the hospital service corporations shall at all times be limited after the first year of operation to not exceed twenty-five percent (25%) of the total net premium income of the corporation. All acquisition and adminis…

The service corporation shall maintain at all times proper reserves, subject to the approval of the commissioner, for unearned subscription fees and unearned premiums and for unpaid hospital bills, including provision for unreported and undischarged hospital cases and for incurre…

The funds of the service corporations, subject to this chapter, shall be invested only in securities permitted by the law of this state for the investment of assets of life insurance companies.

Every service corporation shall annually, on or before March 1, file in the office of the department a statement of its operation for the calendar year and showing financial condition as of December 31 then next preceding, in such form and content as the commissioner prescribes, …

The service corporation shall maintain adequate financial and statistical records in reasonable uniformity with accounting plans and statistical requirements of the annual statement blank required by the commissioner.

The commissioner has the same authority to examine such service corporations as granted to the commissioner for the examination of life, accident and health insurance companies, and has the same authority for the correction, rehabilitation or liquidation of such service corporati…

The corporation shall submit to the commissioner specimen copies of each different type of subscriber's contract and a schedule of rates applicable to the subscriber's contract that it proposes to issue in this state. The commissioner shall approve or disapprove a contract as pro…

(a) All licenses authorizing hospital service corporations to transact business in this state shall be renewable on July 1 of each year. (b) A hospital service corporation licensed to do business in this state under this chapter shall obtain from the commissioner a certificate of…

Every corporation or its agents, subject to this chapter, shall be subject to the fees and taxes as prescribed for life, health and accident insurance companies and agents of the companies doing business in this state. It is not the purpose of this chapter to discriminate in favo…