Required contract provisions

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§ 4514. Required contract provisions

A contract entered into by a hospital service corporation shall be in writing, one copy of which shall be furnished to the subscriber, and shall contain the following provisions:

(1) a statement of the amount payable to the corporation by the subscriber and the times at which and manner in which such amount is to be paid;

(2) a statement of the nature of the services to be furnished and the period during which they will be furnished; and if there are any services to be excepted, a detailed statement of such exceptions printed as hereinafter specified;

(3) a statement of the terms and conditions, if any, upon which the contract may be canceled or otherwise terminated at the option of either party;

(4) a statement that the contract includes the endorsements thereon and attached papers, if any, and contains the entire contract for services;

(5) a statement that no representation by the subscriber in his or her application for a contract shall avoid the contract or be used in any legal proceeding thereunder, unless such application or an exact copy thereof is included in or attached to such contract, and that no agent or representative of such corporation, other than an officer designated therein, is authorized to change the contract or waive any of its provisions;

(6) a statement that if the subscriber defaults in making any payment under the contract, the subsequent acceptance of a payment by the corporation or by any of its duly authorized agents shall reinstate the contract, but, with respect to sickness and injury, only to cover such sickness as may be first manifested more than 10 days after the date of such acceptance; and

(7) a statement of the period of grace which will be allowed the subscriber for making any payment due under the contract. Such period shall be not less than 10 days.


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