Sec. 38a-216. (Formerly Sec. 33-170). Incorporation. Representation of policyholders on board of directors.
Sec. 38a-216. (Formerly Sec. 33-170). Incorporation. Representation of policyholders on board of directors. A medical association desiring to form a medical
service corporation may incorporate under the general laws of the state governing corporations, but subject to the following provisions: (a) The certificate of incorporation of
each such corporation shall have endorsed thereon, or attached thereto, the consent of
the Insurance Commissioner, if he finds the same to be in accordance with sections 38a-214 to 38a-225, inclusive, and in the public interest, provided security guaranteeing the
performance of the obligations of such corporation shall be furnished in form and
amount, not less than five thousand dollars, as the commissioner determines and (b)
such certificate shall include a statement of the territory in which the corporation will
operate, the services to be rendered by the corporation and the rates currently to be
charged therefor and shall be accompanied by two copies of the contract which the
corporation proposes to make with the subscribers. Such corporation shall include in
its bylaws provision for the election of at least three of its policyholders to its board of
directors by its members, and failure to include such a provision in such bylaws or to
abide by such provision shall be grounds for disapproval by the Insurance Commissioner
of any contract it may enter into during the period of such noncompliance.
(1949 Rev., S. 5283; 1959, P.A. 511; P.A. 77-614, S. 163, 610; P.A. 80-482, S. 221, 348.)
History: 1959 act required that corporation include in bylaws provision for election of at least three policyholders to
board of directors; P.A. 77-614 made insurance department a division within the department of business regulation with
commissioner as its head, effective January 1, 1979; P.A. 80-482 restored insurance division as independent department
with commissioner as its head and abolished department of business regulation; Sec. 33-170 transferred to Sec. 38a-216
in 1991.
Annotation to former section 33-170:
Cited. 29 CS 474.