§ 58-65-25. Hospital, physician and dentist contracts. - North Carolina Statutes

§58‑65‑25.  Hospital, physician and dentist contracts.

(a)        Any corporationorganized under this Article may enter into contracts for the rendering ofhospital service to any of its subscribers by hospitals approved by theAmerican Medical Association and/or the North Carolina Hospital Association,and may enter into contracts for the furnishing of, or the payment in whole orin part for, medical and/or dental services rendered to any of its subscribersby duly licensed physicians and/or dentists.  All obligations arising undercontracts issued by such corporations to its subscribers shall be satisfied bypayments made directly to the hospitals or hospitals and/or physicians and/ordentists rendering such service, or direct to the subscriber or his, her, or theirlegal representatives upon the receipt by the corporation from the subscriberof a statement marked paid by the hospital(s) and/or physician(s) and/ordentist(s) or both rendering such service, and all such payments heretoforemade are hereby ratified.  Nothing in this section shall be construed todiscriminate against hospitals conducted by other schools of medical practice.

(b)        All certificates,plans or contracts issued to subscribers or other persons by hospital andmedical and/or dental service corporations operating under this Article shallcontain in substance a provision as follows: "After two years from thedate of issue of this certificate, contract or plan no misstatements, exceptfraudulent misstatements made by the applicant in the application for suchcertificate, contract or plan, shall be used to void said certificate, contractor plan, or to deny a claim for loss incurred or disability (as thereindefined) commencing after the expiration of such two‑year period." (1941,c. 338, s. 3; 1943, c. 537, s. 2; 1947, c. 820, s. 1; 1955, c. 850, s. 7; 1961,c. 1149; 1979, c. 755, s. 17; 1997‑259, s. 16.)