§ 56-27-101. Short Title
This chapter shall be known and may be cited as the “Medical Service Plan Law, 1945.”
§ 56-27-102. Chapter Definitions
As used in this chapter, unless the context otherwise requires: “Beneficiary” means a person designated in the subscription certificate referred to in subdivision (9), as entitled to the medical services referred to in subdivision (9); “Commissioner” means the commissioner of commerce and insurance; “Covered dependent” is the spouse, an adult dependent or child of a […]
§ 56-27-103. Formation of Nonprofit Medical Service Plan Corporation
Nine (9) natural persons of full age and of either sex, all of whom are residents of this state and citizens of the United States, and at least a majority of whom are doctors of medicine licensed to practice medicine and surgery in this state, may form, under the laws of this state relating to […]
§ 56-27-104. Articles of Incorporation and Amendments — Approval by Commissioner
The articles of incorporation of the corporation and amendments to the articles shall be submitted to the commissioner, and shall be subject to the commissioner’s approval, which shall be endorsed on the articles or the amendments before they are filed with the secretary of state; provided, that if the articles of incorporation of the corporation […]
§ 56-27-105. Board of Directors — Number — Qualifications — Nomination — Election — Compensation
A medical service plan corporation shall consist of a board of directors and of members, grouped in reasonable classes as the bylaws of the corporation as approved by the commissioner shall provide. The business of the corporation shall be managed by a board of directors of nine (9) persons possessing the same general qualifications as […]
§ 56-27-106. Right to Establish or Operate Plan — Unlawful Acts
It is unlawful for any person except a medical service plan corporation, incorporated in accordance with this chapter, and operating in accordance with this chapter, and operating in accordance with authority from the commissioner or an insurance company properly qualified in this state to write accident, health or disability insurance, to establish, maintain, or operate […]
§ 56-27-107. Scope and Extent of Medical Service
A medical service plan corporation shall be authorized to provide either or both general and special medical and surgical care benefits, including service that may be necessarily incident to medical care. The extent and scope of a medical service plan shall be clearly shown in the subscription contract, and may be limited only as clearly […]
§ 56-27-108. Right to Become Participating Physician — Method of Diagnosis and Treatment Unrestricted — Private Physician-Patient Relationship
Every doctor of medicine licensed to practice in this state under title 63, chapter 6, and who is reputable and in good standing, has the right to become a participating physician in the medical service plan corporation operating in the county in which the doctor resides or practices, for general or special medical care, as […]
§ 56-27-109. Agreements With Physicians
A medical service plan corporation may enter into agreements with physicians qualified as set out in § 56-27-108, under which the physicians become participating physicians of a plan operated by the corporation, and may make to the physicians payments that have accrued to them by reason of services performed under the plan and on behalf […]
§ 56-27-110. License Required
A corporation subject to this chapter may issue contracts only when the commissioner has by formal license authorized it to do so.
§ 56-27-111. Application for License — Form — Accompanying Documents — Filing Fee
Application for the license shall be made on forms approved by the commissioner, containing information the commissioner deems necessary. Every application for the license shall be accompanied by copies of the following documents: A certified copy of its charter or certificate of incorporation; A copy of its bylaws, certified by the lawful custodian of the […]
§ 56-27-112. Prerequisites for Issuance of License
The commissioner shall issue a license upon compliance with this chapter, and other proper requirements of the commissioner, and upon being satisfied that: All items required to be filed are in proper form, as required by this chapter, and meet the approval of the commissioner; The applicant is established as a bona fide medical service […]
§ 56-27-113. Investment of Funds
The funds of the medical service corporations subject to this chapter shall be invested only in securities permitted by the laws of this state for the investment of assets of life insurance companies.
§ 56-27-114. Administrative Expenses
All acquisition and administrative expenses incurred in connection with the medical service corporation shall at all times be limited after the second year of operation to not exceed twenty-five percent (25%) of the total net premium income of the corporation. The expenses, during the first year, shall be limited to thirty-five percent (35%), and during […]
§ 56-27-115. Purchase of Liability Insurance Authorized
A medical service plan corporation is authorized to purchase a contract of insurance protecting the corporation or any officer or employee of the corporation, or any physician from liability for injuries resulting from negligence, misfeasance, malfeasance, nonfeasance or health care liability on the part of any officer or employee of the corporation, or on the […]
§ 56-27-116. Records to Be Maintained
The medical 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.
§ 56-27-117. Annual Statement — Form — Filing Fee
The service corporation shall annually, on or before March 1, file in the office of the department a statement of its operations for the calendar year, and showing financial condition as of December 31, then next preceding, in the form and content the commissioner shall prescribe, signed and sworn to by its president and secretary, […]
§ 56-27-118. Examination — Rehabilitation or Liquidation
The commissioner has the same authority to examine the service corporation as is 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 the service corporation as is now provided by law for life, health and accident companies.
§ 56-27-119. Fees and Taxes
Every medical service corporation, or its agents, subject to this chapter, is 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 favor of the medical service corporations.
§ 56-27-120. Renewals of Licenses — Agents’ Certificates of Authority
All licenses authorizing medical service plan corporations to transact business in this state shall be renewable on April 1 of each year, subject to the approval of the commissioner. Every medical service corporation licensed to do business in this state under this chapter shall obtain from the commissioner a certificate of authority for every agent […]