Sec. 38a-230. (Formerly Sec. 38-401). Definitions. Legal service corporation may fix rates and contract for coordination of benefits.
Sec. 38a-230. (Formerly Sec. 38-401). Definitions. Legal service corporation
may fix rates and contract for coordination of benefits. (a) A nonprofit legal service
corporation is defined as a nonprofit corporation without capital stock organized under
the laws of the state for the purpose of establishing, maintaining and operating a plan
whereby legal services may be provided at the expense of such corporation by attorneys-at-law to subscribers under contract entitling such subscribers to payments or benefits
in fixed or variable amounts for the cost of legal services. Cost of legal services shall
include attorneys' fees, court costs and related expenses incurred in the exercise of
any right.
(b) A legal service corporation providing benefits to plan subscribers under the
provisions of subsection (a) of this section may, upon obtaining the approval of the
Insurance Commissioner as provided in section 38a-234: (1) Fix or adjust the rates to
be paid by any group or groups of its subscribers based upon past and prospective loss
experience and may classify subscribers and groups of subscribers and determine rates
with reference to standards for variations of risks or expenses which it may establish,
and (2) contract for the coordination of benefits with other legal service corporations
or with insurance companies to avoid duplication of benefits to be provided to its group
subscribers. Subdivisions (1) and (2) of this subsection shall be subject to such regulations as may be promulgated by the Insurance Commissioner to establish guidelines of
eligibility for experience rating and adoption of coordination of benefit clauses in legal
service benefit contracts. Every such corporation shall be governed by sections 38a-230 to 38a-245, inclusive, and shall, except as specifically designated herein, be exempt
from the provisions of the general statutes relating to insurance.
(c) Any such legal service corporation may contract with any insurance company
authorized to make any contract for accident and health insurance or casualty insurance
in this state, or with any hospital service corporation incorporated under sections 38a-199 to 38a-209, inclusive, or any medical service corporation incorporated under sections 38a-214 to 38a-225, inclusive, for the performance of services to such legal service
corporation or its subscribers necessary or proper in providing for payments or benefits
under the provisions of this section.
(P.A. 79-234, S. 1; P.A. 80-482, S. 3, 345, 348.)
History: P.A. 80-482 abolished the department of business regulation and restored its division of insurance as an
independent department (as it was prior to creation of the business regulation department in P.A. 77-614), thus allowing
omission of reference to business regulation department in insurance commissioner's title; Sec. 38-401 transferred to Sec.
38a-230 in 1991.