New Mexico Statutes 59A-47-4. Organization; profit corporations prohibited; merger and consolidation of health care plans
A. A corporation may be organized under the laws of this state which provide for the organization of nonprofit corporations, as a nonprofit corporation organized for making health care expense payments on a service benefit basis or an indemnity basis, or both, for subscribers under contract with such corporation.
Terms Used In New Mexico Statutes 59A-47-4
- Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
- 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.
B. The articles of incorporation of each domestic health care plan shall have endorsed thereon or annexed thereto the consent of the superintendent prior to filing. The amendment of the articles of incorporation of any domestic health care plan shall have endorsed thereon or annexed thereto the consent of the superintendent prior to filing.
C. The directors of a domestic health care plan shall be chosen in accordance with the bylaws of the corporation, subject to the following:
(1) at least twenty-five percent of the directors shall be members of the general public; and
(2) the balance of the directors shall be either representatives of purveyors or members of the general public.
D. No domestic health care plan shall be converted into a corporation organized for pecuniary profit; and any such plan shall be maintained and operated primarily for the benefit of its subscribers.
E. A domestic health care plan may merge only with another domestic health care plan in accordance with applicable provisions of the Insurance Holding Company Law [N.M. Stat. Ann. Chapter 59A, Article 37] and the Nonprofit Corporation Act [N.M. Stat. Ann. Chapter 53, Article 8].