The Insurance Commissioner shall issue a certificate of authority authorizing the applicant to issue contracts to its subscribers when it is shown to the satisfaction of the Commissioner that:
1. The applicant is established as a bona fide not-for-profit hospital service or indemnity corporation and/or a not-for-profit medical or indemnity corporation;
2. The contracts between the applicant and the participating hospitals, physicians, or other health care providers, if any, obligate each hospital, physician, or other health care provider executing the same to render service to which each subscriber may be entitled under the terms of the contract to be issued to the subscribers;
3. The amounts provided as working capital of the corporation are repayable, without interest, out of operating expenses;
4. The amount of money actually available for working capital is sufficient to carry on the plan for a period of six (6) months from the date of issuance of the certificate of authority; and
5. The applicant has secured contracts of participation from sufficient hospitals, physicians, or other health care providers to provide ample protection for its subscribers within the area proposed to be served by the applicant.
Amended by Laws 1988, c. 227, § 3, emerg. eff. June 20, 1988.