State Codes and Statutes

Statutes > New-jersey > Title-17 > Section-17-48a > 17-48a-2

17:48A-2.  Nonprofit corporation;  trustees and physicians;  who may operate  medical service plan;  certificate of authority
    No medical service corporation shall be converted into a corporation organized for pecuniary profit.  Every such corporation shall be operated for the benefit of the subscribers.  No person shall be elected a trustee of any medical service corporation unless his nomination has been approved by a recognized medical society or professional medical organization having not less  than 2,000 members holding licenses to practice medicine and surgery pursuant  to chapter 9, Title 45, of the Revised Statutes, and which has been incorporated for a period of not less than 10 years.  No medical service corporation shall impose any restrictions on physicians who administer to its subscribers as to methods of diagnosis or treatment.  The private relationship of physician and patient shall be maintained and the subscriber shall at all times be free to choose either a doctor of medicine, doctor of chiropractic or any other participating physician.  No person, firm, association or corporation  other than a medical service corporation shall establish, maintain or operate a  medical service plan or any other means, agency or device for contracting with  persons to pay for or to provide for medical services on the basis of premiums  or other valuable considerations to be collected by such person, firm,  association or corporation from such persons for the issue of such contracts; provided, that this section shall not be construed as preventing the exercise  of any authority or privilege granted to any corporation by any certificate of  authority issued by the Commissioner of Insurance pursuant to any law of this  State;  and provided further, that this section shall not be construed as  preventing any person, firm, association or corporation from furnishing medical  services required under any workmen's compensation law.  No medical service  corporation shall solicit subscribers or enter into any contract with any  subscriber until it has received from the Commissioner of Insurance a  certificate of authority to do so.

     L.1940, c. 74, p. 186, s. 2.  Amended by L.1944, c. 102, p. 258, s. 2; L.1977, c. 297, s. 2, eff. Dec. 15, 1977.