The director may not issue or permit to exist a certificate of authority to be or act as a service corporation to a corporation that does not fulfill the following qualifications:

(1) it must be incorporated as provided in Alaska Stat. § 21.87.050, as either a medical service corporation, or as a hospital service corporation, or as a combined medical and hospital service corporation;
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Terms Used In Alaska Statutes 21.87.070

  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
(2) it must intend to and actually conduct its business in good faith as a nonprofit corporation;
(3) if a hospital service corporation, it must have in force at all times while so authorized, service agreements with participant hospitals located in the areas of the subscribers’ residences, convenient as to location and sufficient as to capacity and facilities reasonably to furnish the hospital services provided or proposed to be provided by the corporation to its subscribers;
(4) if a medical service corporation, it must have in force service agreements with participant providers located in the areas of the subscribers’ residences convenient as to location and sufficient in numbers and facilities reasonably to furnish the medical and surgical services provided or proposed to be provided by the corporation to its subscribers;
(5) if a newly formed corporation, it must possess sufficient available working funds to pay all reasonably anticipated cost of acquisition of new business and operating expenses, other than payment for hospital or medical services, for a period of not less than the six months following the date of issuance of the certificate of authority, if issued, or $100,000, whichever amount is greater;
(6) it must fulfill all other applicable requirements of this chapter.
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