Michigan Laws 550.1204 – Filing of statements and documents; examination; investigation; additional information; conditions; duties of commissioner
Current as of: 2024 | Check for updates
|
Other versions
(1) Before entering into contracts or securing applications of subscribers, the persons incorporating a health care corporation shall file all of the following in the office of the commissioner:
(a) Three copies of the articles of incorporation, with the certificate of the attorney general required under section 202(3) attached.
Terms Used In Michigan Laws 550.1204
- 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.
- Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
- Fraud: Intentional deception resulting in injury to another.
(b) A statement showing in full detail the plan upon which the corporation proposes to transact business.
(c) A copy of all certificates to be issued to subscribers.
(d) A copy of the financial statements of the corporation.
(e) Proposed advertising to be used in the solicitation of certificates for subscribers.
(f) A copy of the bylaws.
(g) A copy of all proposed contracts and reimbursement methods.
(2) The commissioner shall examine the statements and documents filed under subsection (1), may conduct any investigation that he or she considers necessary, may request additional oral and written information from the incorporators, and may examine under oath any persons interested in or connected with the proposed health care corporation. The commissioner shall ascertain whether all of the following conditions are met:
(a) The solicitation of certificates will not work a fraud upon the persons solicited by the corporation.
(b) The rates to be charged and the benefits to be provided are adequate, equitable, and not excessive, as defined in section 609.
(c) The amount of money actually available for working capital is sufficient to carry all acquisition costs and operating expenses for a reasonable period of time from the date of issuance of the certificate of authority, and is not less than $500,000.00 or a greater amount, if the commissioner considers it necessary.
(d) The amounts contributed as the working capital of the corporation are payable only out of amounts in excess of minimum required reserves of the corporation.
(e) Adequate and unimpaired surplus is provided, as determined under section 204a.
(3) If the commissioner finds that the conditions prescribed in subsection (2) are met, the commissioner shall do all of the following:
(a) Return to the incorporators 1 copy of the articles of incorporation, certified for filing with the director of the department of consumer and industry services or of any other agency or department authorized by law to administer the business corporation act, 1972 PA 284, MCL 450.1101 to 450.2098, or his or her designated representative, and 1 copy of the articles of incorporation certified for the records of the corporation itself.
(b) Retain 1 copy of the articles of incorporation for the commissioner’s office files.
(c) Deliver to the corporation a certificate of authority to commence business and to issue certificates that have been approved by the commissioner, or that are exempted from prior approval pursuant to section 607(2) or (8), entitling subscribers to certain health care benefits.