2014 Kentucky Revised Statutes CHAPTER 304 - INSURANCE CODE Subtitle 32 - Nonprofit Hospital, Medical-Surgical, Dental and Health Service Corporations 32.32-045 Entities subject to provisions of this subtitle permitted to convert to domestic mutual insurance companies subject to provisions of Subtitle 24.
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304.32-045 Entities subject to provisions of this subtitle permitted to convert
to domestic mutual insurance companies subject to provisions of
Subtitle 24.
(1)
(2)
Any nonprofit hospital, medical-surgical, dental, and health service corporation
subject to the provisions of this subtitle, possessed of admitted assets in
excess of all liabilities at least equal to the original surplus required of a
domestic mutual insurance company transacting the same kind or kinds of
business may, at its option and without reincorporation, adopt and become
subject to the provisions of Subtitle 24 of this chapter governing domestic
mutual insurers in lieu of this subtitle; provided, however, that upon becoming
subject to the provisions of Subtitle 24 of this chapter, as hereinafter provided,
such companies may continue to provide services to their present or like
services to future members and subscribers and may make provision for the
payment for health care services directly to hospitals or other agencies or
institutions or persons rendering such health care service or related services or
may make direct payment to the member or subscriber.
Any nonprofit hospital, medical-surgical, dental, and health service corporation
subject to the provisions of this subtitle may adopt and become subject to the
provisions of Subtitle 24 of this chapter by the adoption of a resolution by its
board of directors declaring the election of said nonprofit hospital,
medical-surgical, dental, and health service corporation to become subject to
the provisions of Subtitle 24 of this chapter governing domestic mutual
insurers, and after the adoption of such resolution the board of directors shall
adopt such amendments to the articles of incorporation and bylaws of the
nonprofit hospital, medical-surgical, dental, and health service corporation as
shall be necessary and file the same with the commissioner of the Department
of Insurance of the Commonwealth of Kentucky. Upon such filing, said
nonprofit hospital, medical-surgical, dental, and health service corporation shall
no longer be subject to the provisions of this subtitle, but shall be subject to
Subtitle 24 of this chapter governing domestic mutual insurers and shall honor
all legitimate claims presented by its member policyholders under the terms
and conditions of its policy who have incurred claims in any private hospital
with acute care in the State of Kentucky as long as the hospital is duly licensed
and certified by the State of Kentucky; provided, however, that group certificate
holders may also be members of the insurer, if so specified in the bylaws of the
insurer; and further provided that the conversion of a nonprofit hospital,
medical-surgical, dental, and health service corporation, subject to this subtitle,
into a domestic mutual insurance company shall not impair the rights or
obligations of the nonprofit hospital, medical-surgical, dental, and health
service corporation or its members on any contract heretofore or hereafter
made.
Effective:July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1413, effective July 15, 2010. -Created 1986 Ky. Acts ch. 320, sec. 1, effective July 15, 1986.
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