Tennessee Code 56-27-125 – Subscription contract – Duration – Renewal – Termination – Forfeiture of membership – Deferment of inception coverage
Terms Used In Tennessee Code 56-27-125
- 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.
- Medical service plan: means a plan or arrangement under which medical services are or may be rendered to a subscriber, a covered dependent or other beneficiary by a licensed physician and surgeon at the expense of a medical service plan corporation or other person, in consideration of periodical prepayments made by the subscriber or another in the subscriber's behalf prior to the occurrence of the condition calling for the rendition of medical or surgical services. See Tennessee Code 56-27-102
- Medical service plan corporation: means a corporation organized without capital stock and not for profit, and incorporated in accordance with §. See Tennessee Code 56-27-102
- Medical services: means the general and usual services and care rendered and administered by doctors of medicine. See Tennessee Code 56-27-102
- Month: means a calendar month. See Tennessee Code 1-3-105
- Subscriber: means a person to whom a subscription certificate is issued by a medical service plan corporation that sets forth the beneficiaries and the kinds and extent of the medical services for which the corporation is liable to make payment. See Tennessee Code 56-27-102
- Subscription: includes a mark, the name being written near the mark and witnessed. See Tennessee Code 1-3-105
- written: includes printing, typewriting, engraving, lithography, and any other mode of representing words and letters. See Tennessee Code 1-3-105
- Year: means a calendar year, unless otherwise expressed. See Tennessee Code 1-3-105
Every subscription contract made by a medical service plan corporation shall provide for the payment of medical services for a period of twelve (12) months from the date of issue of the subscription certificate. The contract may provide that it shall be subject to renewal from year to year unless there has been one (1) month‘s prior written notice of termination by the medical service plan corporation. A subscriber shall forfeit membership upon failure to renew the subscriber’s contract, or upon the subscriber’s voluntary resignation. During the first contract year, the contract may provide that the inception coverage may be deferred for not more than two (2) months from date of issue of the contract, and may exclude treatment for illness existing at the inception of the contract.