Section 500.3527 - Health maintenance contract; performance; violation of terms.
THE INSURANCE CODE OF 1956 (EXCERPT)
Act 218 of 1956
500.3527 Health maintenance contract; performance; violation of terms.
Sec. 3527.
(1) Upon obtaining a certificate of authority, a health maintenance organization may enter into health maintenance contracts and engage in other activities consistent with this chapter and other applicable laws of this state that are necessary to perform its obligations under its contracts.
(2) A health maintenance organization shall not terminate a health maintenance contract or deny a renewal of a contract because of age, sex, health status, national origin, or frequency of utilization of medically indicated services of an enrollee or group of enrollees.
(3) A health maintenance contract may be terminated for violation of the terms of the contract or for nonpayment of the fixed prepaid sum or per capita prepayment set forth in the contract if the fixed prepaid sum or per capita prepayment is not paid within 30 days after the due date.
History: Add. 2000, Act 252, Imd. Eff. June 29, 2000
Popular Name: Act 218
Popular Name: HMO