Texas Insurance Code Title 6, Chapter 842 - Group Hospital Service Corporations

SUBCHAPTER A GENERAL PROVISIONS

• Texas Section 842.001 - Definitions
  In this chapter: (1) "Group hospital service corporation" means a corporation organized under this chapter to establish and operate a nonprofit hospital service plan, under...
• Texas Section 842.002 - Applicability Of Other Laws
  (a) Except as otherwise required by this chapter, a state agency may not require a group hospital service corporation to post a bond or place...

SUBCHAPTER B FORMATION AND STRUCTURE OF GROUP HOSPITAL SERVICE CORPORATION

• Texas Section 842.003 - Corporation Subject To Regulation By Commissioner And Department
  Each group hospital service corporation is subject to regulation by the department and the commissioner. Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1,...
• Texas Section 842.051 - Application For Corporate Charter; Nonprofit Status Required
  (a) Seven or more persons, a majority of whom are superintendents of hospitals or physicians licensed by the Texas State Board of Medical Examiners, may...

SUBCHAPTER C AUTHORITY TO ENGAGE IN BUSINESS

• Texas Section 842.052 - Minimum Membership Requirements
  (a) Before a group hospital service corporation may be incorporated, the corporation must have collected in advance from at least 500 applicants for membership: (1)...

SUBCHAPTER D BOARD OF DIRECTORS; PERSONNEL

• Texas Section 842.101 - Issuance Of Certificate Of Authority
  (a) The department shall issue to a group hospital service corporation a certificate of authority that authorizes the corporation to engage in the business of...
• Texas Section 842.151 - Board Of Directors
  (a) Each group hospital service corporation is governed by a board of directors that has full control over its management affairs. (b) A board of...
• Texas Section 842.152 - Compensation Of Directors
  A director of a group hospital service corporation may not receive compensation for the director's services but is entitled to receive reimbursement for reasonable and...
• Texas Section 842.153 - Board Meetings
  The board of directors of a group hospital service corporation may not meet more frequently than once a month. A meeting may not last more...
• Texas Section 842.154 - Bond Requirements For Certain Officers And Employees
  (a) Each group hospital service corporation shall post a bond for the officer or employee responsible for the handling of the corporation's money. The bond...
• Texas Section 842.155 - Treasurer's Bond
  The treasurer of each group hospital service corporation shall post a fidelity bond with a corporation surety. The bond must be in the amount determined...

SUBCHAPTER E REGULATION OF GROUP HOSPITAL SERVICE CORPORATIONS

• Texas Section 842.156 - Compensation Of Certain Officers And Employees
  A paid officer or employee of a group hospital service corporation may not receive more than $20,000 annually as compensation for the officer's or employee's...
• Texas Section 842.201 - Annual Statement; Filing Fee
  (a) Not later than March 1 of each year, each group hospital service corporation shall file with the department an annual statement that covers the...
• Texas Section 842.202 - Reserve Requirements
  (a) Each group hospital service corporation shall maintain reserves sufficient to cover liability for claims incurred but not yet paid and the expenses incurred in...
• Texas Section 842.203 - Final Judgment Deposit
  (a) For each 1,000 members and fraction of 1,000 members, a group hospital service corporation shall deposit $100 with the comptroller through the commissioner. The...
• Texas Section 842.204 - Investment Limitations
  The investment limitations that apply to a life, health, and accident insurance company apply to the investments of a group hospital service corporation. Added by...
• Texas Section 842.205 - Incurred Expenses
  (a) In this section, "general expenses" means expenses incurred by a group hospital service corporation in the operation of its business other than: (1) a...
• Texas Section 842.206 - Minimum Surplus Requirement
  Each group hospital service corporation shall maintain a surplus of at least $100,000 to meet adverse contingencies. Added by Acts 2001, 77th Leg., ch. 1419,...
• Texas Section 842.207 - Contracts; Reinsurance; Other Agreements
  (a) Subject to Subsection (b), a group hospital service corporation may: (1) contract with another organization similar in character for joint participation through: (A) a...
• Texas Section 842.208 - Books And Records
  Each group hospital service corporation shall keep complete books and records. Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
• Texas Section 842.209 - Examinations
  The following laws apply to a group hospital service corporation: (1) Subchapter A, Chapter 86; and (2) Sections 401.051, 401.052, 401.054-401.062, 401.151, 401.152, 401.155, and...

SUBCHAPTER F PLAN OF OPERATION; PROVISION OF BENEFITS TO MEMBERS

• Texas Section 842.210 - Liquidation, Rehabilitation, Or Conservation Of Group Hospital Service Corporation
  The dissolution, liquidation, rehabilitation, or conservation of a group hospital service corporation is subject to Chapters 441 and 443. Added by Acts 2001, 77th Leg.,...
• Texas Section 842.251 - Plan Of Operation
  (a) Before accepting applications for membership in its hospital service plan, a group hospital service corporation must submit to the commissioner a plan of operation....
• Texas Section 842.252 - Membership Certificate; Contract
  (a) A group hospital service corporation shall issue to each member a membership certificate that states the benefits to which the member is or may...
• Texas Section 842.253 - Policy, Certificate, And Application Forms
  A policy, certificate, or application form used by a group hospital service corporation is subject to Chapter 1701. Added by Acts 2001, 77th Leg., ch....
• Texas Section 842.254 - Deposit Requirements
  A group hospital service corporation shall deposit in the account of the corporation in a bank money collected by the corporation from a member or...
• Texas Section 842.255 - Advance Payments To Hospital Prohibited
  A group hospital service corporation may not pay to a hospital any money collected by the corporation from a member or subscriber before the hospital...
• Texas Section 842.256 - Contracts With Health Care Providers
  (a) A group hospital service corporation may contract with health care providers as necessary to ensure to each member or subscriber the provision of services...
• Texas Section 842.257 - May Limit Benefits
  A policy or certificate issued by a group hospital service corporation may limit the types of disease for which benefits are provided. Added by Acts...
• Texas Section 842.258 - Limitations On Contracts For Medical Services
  (a) A group hospital service corporation may not: (1) contract to provide to a member a physician or any medical services; (2) contract to practice...
• Texas Section 842.259 - Use Of Indemnity Plan Authorized
  A group hospital service corporation may provide benefits for medical care, surgical care, or both medical and surgical care on the basis of indemnity payments...
• Texas Section 842.260 - Payment Of Claim; Proof Of Claim
  (a) After receipt of due proof of claim, a group hospital service corporation shall pay each claim presented under a membership certificate in full not...

SUBCHAPTER G DISCIPLINARY PROCEDURES

• Texas Section 842.261 - Information Available Through Internet Site
  (a) A group hospital service corporation that maintains an Internet site shall list on the Internet site the physicians and health care providers, including, if...
• Texas Section 842.301 - Revocation Of Certificate Of Authority
  The commissioner shall revoke the certificate of authority of a group hospital service corporation that: (1) is determined to be: (A) operating fraudulently; or (B)...

Last modified: September 28, 2016