62C.01 NONPROFIT HEALTH SERVICE PLAN CORPORATIONS ACT. Subdivision 1. Citation. Sections 62C.01 to 62C.23 may be cited as the “Nonprofit Health Service Plan Corporations Act.” Subd. 2. Purpose. It is the purpose and intent of Laws 1971, chapter 568 to promote a wider, more economical and timely availability of hospital, medical-surgical, dental, and other health […]
62C.02 DEFINITIONS. Subdivision 1. Scope. For the purposes of sections 62C.01 to 62C.23 the terms defined in this section have the meanings given them. Subd. 2. Commissioner. “Commissioner” means the commissioner of commerce or a person duly designated to act in the commissioner’s place. Subd. 3. Health service. “Health service” means any service or class […]
62C.03 SERVICE PLAN CORPORATIONS AUTHORIZED. Subdivision 1. General authority. A service plan corporation may be organized to establish, maintain and operate a service plan providing health services in their entirety or in part, according to the subscriber contract. No subscriber’s contract shall provide for payment of cash indemnification by the corporation to the subscriber or […]
62C.04 ORGANIZATION. Subdivision 1. Incorporated as nonprofit. Except as otherwise expressly provided, a service plan corporation organized after August 1, 1971 shall be incorporated under and subject to chapter 317A, as it may be amended, and in addition shall have, to the extent provided in its articles of incorporation, all powers and duties provided by […]
62C.05 ARTICLES OF INCORPORATION; BYLAWS. Subdivision 1. Required conformance. The articles of incorporation and bylaws of any service plan corporation and any amendments thereto shall conform to the requirements of Laws 1971, chapter 568 and chapter 317A. Subd. 2. Specified statements in articles. In addition to meeting the requirements of chapter 317A, the articles of […]
62C.06 APPROVAL OF ARTICLES AND BYLAWS. Subdivision 1. Commissioner’s review and approval. Proposed articles, bylaws or amendments thereto must be approved by the commissioner. The proposed articles, bylaws or amendments shall be submitted to the commissioner in triplicate. One copy shall be promptly returned endorsed by the commissioner to show the date of receipt. Failure […]
62C.07 DIRECTORS; MANAGEMENT. Subdivision 1. Authority and composition. The articles of incorporation or the bylaws of a service plan corporation shall provide that the authority and responsibility for election of officers and proper and lawful operation of the corporation shall be in a board of not less than 12 directors with powers and authority as […]
62C.08 CERTIFICATE OF AUTHORITY. Subdivision 1. Requirement. No service plan corporation shall enter into subscriber contracts or solicit applications therefor, until it has secured a certificate of authority from the commissioner. Application for a certificate of authority shall be made upon forms prescribed by the commissioner. Subd. 2. Granting. The commissioner may grant a certificate […]
62C.09 FINANCIAL REQUIREMENTS. Subdivision 1. Generally. The commissioner shall not issue a certificate of authority to any service plan corporation hereafter organized unless the corporation has met all legal requirements and, if organized on a capital stock basis unless the corporation has paid up capital stock of not less than $200,000 and an initial surplus […]
62C.10 INVESTMENT. Funds of a corporation subject to this chapter shall be invested only in securities and property designated by law for investment by domestic life insurance companies. Notwithstanding any limitations set forth in chapter 61A, an organization which has received a certificate of authority from the commissioner to operate under this chapter may invest […]
62C.11 FINANCIAL STATEMENTS AND EXAMINATIONS. Subdivision 1. Annual filing. A service plan corporation shall annually on or before the last day of March, file with the commissioner a financial statement, in such form as the commissioner shall prescribe, verified by not less than two of its principal officers, showing the financial condition of the corporation […]
62C.12 SUSPENSION. A service plan corporation shall be subject to section 60A.052, relating to the denial, suspension or revocation of a certificate of authority, and to chapter 60B. The commissioner also may suspend or revoke a certificate for any violation or noncompliance with Laws 1971, chapter 568 following a hearing under procedures established by rules […]
62C.13 AUTHORIZED CONTRACTS AND AGREEMENTS. Subdivision 1. General powers. A service plan corporation may act for, or as agent of, a provider and may contract with subscribers and others to render or provide health services for the benefit of subscribers. It may enter into service agreements. A subscriber contract may provide for payment to, or […]
62C.14 SUBSCRIBER CONTRACTS. Subdivision 1. Copy to subscriber. A service plan corporation shall deliver to every subscriber, except those covered as a spouse or dependent of another subscriber, a copy of the subscriber’s contract or a certificate evidencing that the subscriber is covered by a group subscriber’s contract. Subd. 2. General contents. The subscriber’s contract […]
62C.142 CONTINUATION AND CONVERSION PRIVILEGES FOR FORMER SPOUSES AND CHILDREN. Subdivision 1. Termination of coverage. No subscriber contract of a nonprofit health service plan corporation which, in addition to covering the subscriber, also covers the subscriber’s spouse shall contain a provision for termination of coverage for a spouse covered under the subscriber contract solely as […]
62C.15 SUBSCRIPTION CHARGES. Subdivision 1. Establishment and adjustment. A service plan corporation shall establish and adjust from time to time subscription charges to be paid by or on behalf of its subscribers. The charges shall be reasonable, and not unfairly discriminatory, in relation to the benefits, considering actuarial projection of the cost of providing or […]
62C.16 SERVICE AGREEMENTS. Subdivision 1. Agreements with authorized providers. Service plan corporations, as agents for providers, may enter into service agreements only with providers authorized to practice their profession or conduct their business in this state or the state or foreign country in which the provider is located. Subd. 2. Enforcement. A service plan corporation […]
62C.17 LICENSE FOR SOLICITOR OR AGENT. Subdivision 1. Requirement. No person shall act as a solicitor or agent for solicitation of subscribers on behalf of a service plan corporation, except an officer of the corporation, until that person obtains a license from the commissioner. The license shall be granted to qualified persons only upon request […]
62C.18 PERSONAL LIABILITY. Subdivision 1. Limitation. No participating provider shall have any right of action against a subscriber for compensation for health services which such provider has rendered, except to the extent that the subscriber’s contract does not provide coverage for the services or part of the services rendered. Subd. 2. Rights of nonparticipating providers; […]
62C.19 UNFAIR TRADE PRACTICES. Service plan corporations are subject to sections 72A.17 to 72A.30, regarding regulation of trade practices, and to all rules promulgated by the commissioner regarding advertisements for and marketing of accident and health insurance. History: 1971 c 568 s 19; 1985 c 248 s 70
