§ 58-65-40. Supervision of Commissioner of Insurance; form of contract with subscribers; schedule of rates. - North Carolina Statutes

§58‑65‑40.  Supervision of Commissioner of Insurance; form ofcontract with subscribers; schedule of rates.

No hospital servicecorporation shall enter into any contract with subscribers unless and until itshall have filed with the Commissioner of Insurance a specimen copy of thecontract or certificate and of all applications, riders, and endorsements foruse in connection with the issuance or renewal thereof to be formally approvedby him as conforming to the section of this Article entitled  "Subscribers'contracts," and conforms to all rules and regulations promulgated by theCommissioner of Insurance under the provisions of this Article and Article 66of this Chapter.  The Commissioner of Insurance shall, within a reasonable timeafter the filing of any such form, notify the corporation filing the sameeither of his approval or of his disapproval of such form.

No corporation subject to theprovisions of this Article and Article 66 of this Chapter shall enter into anycontract with a subscriber after the enactment hereof unless and until it shallhave filed with the Commissioner of Insurance a full schedule of rates to bepaid by the subscribers to such contracts and shall have obtained theCommissioner's approval thereof.  The Commissioner may refuse approval if hefinds that such rates are excessive, inadequate, or unfairly discriminatory; ordo not exhibit a reasonable relationship to the benefits provided by suchcontracts.  At all times such rates and form of subscribers' contracts shall besubject to modification and approval of the Commissioner of Insurance underrules and regulations adopted by the Commissioner, in conformity to thisArticle and Article 66 of this Chapter. (1941, c. 338, s. 4; 1989, c.485, s. 57.)