(1) A professional service corporation shall enter into service agreements with only licensees duly licensed by the state of Idaho.
(2)  Each such service agreement shall require the participant licensees to furnish to subscribers of the service corporation the professional services which are, under the subscriber’s contract, to be furnished by participant licensees; and this obligation so to furnish such service, as provided for in the subscriber’s contract, shall be a direct obligation of the participant licensees to the subscribers as well as to the service corporation.
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Terms Used In Idaho Code 41-3415

  • Contract: A legal written agreement that becomes binding when signed.
  • 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.
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • State: when applied to the different parts of the United States, includes the District of Columbia and the territories; and the words "United States" may include the District of Columbia and territories. See Idaho Code 73-114
(3)  Each such service agreement shall further effectively provide in substance that:
(a)  The participant licensee shall be compensated for services rendered to a subscriber in accordance with a prescribed formula or a schedule of fees contained in the agreement or attached to and made a part of the agreement, and that the licensee shall not request or receive from the service corporation any compensation for such services which is not in accord with such formula or schedule.
(b)  Compensation for services may be prorated and settled under the circumstances and in the manner referred to in section 41-3431, Idaho Code.
(c)  If the participant licensee withdraws from the service agreement, such withdrawal shall not be effective as to any subscriber’s contract in force on the date of such withdrawal until the termination of such subscriber’s contract or the next following anniversary of such subscriber’s contract, whichever date is the earlier.
(4)  The proposed form of any such service agreement shall be filed with the director and be subject to his approval, as provided in section 41-3419, Idaho Code.
(5)  This section shall not apply as to participant pharmacists.