2021 Kentucky Revised Statutes Chapter 304 - Insurance code Subtitle 304.32 - Nonprofit Hospital, Medical-Surgical, Dental and Health Service Corporations 304.32-045 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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