56-29-116 - Subscription contracts Liability of hospitals Rates Approval of commissioner.
56-29-116. Subscription contracts Liability of hospitals Rates Approval of commissioner.
(a) The corporation may enter into contracts for the rendering of hospital service to the subscribers only with hospitals approved by the commissioner.
(b) All contracts issued by the corporation to the subscribers shall constitute individually and jointly direct obligations of the hospital or hospitals with which the corporation has contracted for hospital service. The rates charged to the subscriber for hospital service, the rates of payment by the corporation to the contracting hospital or hospitals, and the rates charged for medical expense indemnity at all times shall be subject to the approval or disapproval of the commissioner; provided, that in the case of experience-rated group insurance, premium rates and classifications of risks need not be filed but shall be maintained by the hospital and medical service corporations and made available for review by the commissioner upon the commissioner's request.
[Acts 1949, ch. 234, § 4; C. Supp. 1950, § 4186.46 (Williams, § 4186.49); Acts 1978, ch. 513, § 2; T.C.A. (orig. ed.), § 56-3116.]