58-40-7. Issuance of license--Matters considered by director.

147 words·~1 min read·/sd/title-58/chapter-58-40/58-40-7

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

The director shall issue a certificate of authority or license upon being satisfied on the following points:

(1)That the applicant is established as a bona fide nonprofit hospital service corporation;

(2)That the contracts between the applicant and the participating hospitals obligate each hospital to render service to which each subscriber may be entitled under the contract issued to the subscribers;

(3)That the rates to be charged and benefits to be provided are fair and reasonable;

(4)That amounts provided as working capital of the corporation are repayable only out of earned income over and above operating expenses, hospital expenses, and such reserve as the director may deem adequate;

(5)That the amount of money actually available for working capital be sufficient to carry all acquisition costs and operating expenses for a reasonable period of time from the date of the issuance of the certificate.