§ 20-825 — Certificate of authority; requirements

The director shall issue a certificate of authority authorizing the applicant to issue contracts to its subscribers when it is shown to the satisfaction of the director that:

1. The applicant is established as a bona fide, nonprofit hospital service corporation, medical service corporation, dental service corporation or optometric service corporation or combination thereof.

2. The contracts between the applicant and the participating hospitals, physicians, dentists or optometrists obligate each hospital, physician, dentist or optometrist executing them to render service to which each subscriber may be entitled under the terms of the contract to be issued to the subscribers.

3. The amounts provided as working capital of the corporation are repayable, without interest, out of operating expenses.

4. The amount of money actually available for working capital is sufficient to carry on the plan for a period of six months from the date of issuance of the certificate of authority.

5. The applicant has secured contracts of participation from sufficient hospitals, physicians, dentists or optometrists or any combination thereof to provide ample protection for its subscribers within the area proposed to be served by the applicant.