[§432D-12]  Powers of insurers and hospital
and medical service corporations.  (a)  An insurance company licensed in
this State, or a hospital or medical service corporation authorized to do
business in this State, either directly or through a subsidiary or affiliate,
may organize and operate a health maintenance organization under the provisions
of this chapter.  Notwithstanding any other law to the contrary, any two or
more insurance companies, hospital or medical service corporations, or
subsidiaries or affiliates thereof, may jointly organize and operate a health
maintenance organization.  The business of insurance is deemed to include the
providing of health care by a health maintenance organization owned or operated
by an insurer or a subsidiary thereof.



(b)  Notwithstanding any contrary provision of
laws pertaining to insurance or hospital or medical service corporations, an
insurer or a hospital or medical service corporation may contract with a health
maintenance organization to provide insurance or similar protection against the
cost of care provided through health maintenance organizations and to provide
coverage in the event of the failure of the health maintenance organization to
meet its obligations.  The enrollees of a health maintenance organization
constitute a permissible group under such laws.  Among other things, under such
contracts, the insurer or hospital or medical service corporation may make
benefit payments to health maintenance organizations for health care services
rendered by providers. [L 1995, c 179, pt of §1]