Michigan Laws 550.366a – Prudent purchaser agreements; rates; provisions inapplicable to certain contracts and renewal thereof
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(1) A dental care corporation may enter into prudent purchaser agreements with dentists pursuant to the prudent purchaser act.
(2) The rates charged by a corporation for coverage under contracts issued under this section shall not be unreasonably lower than what is necessary to meet the expenses of the corporation for providing this coverage and shall not have an anticompetitive effect or result in predatory pricing in relation to prudent purchaser agreement coverages offered by other organizations.
Terms Used In Michigan Laws 550.366a
- 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.
(3) Nothing in the 1984 amendatory act that added this section shall apply to any contract which was in existence before December 20, 1984, or the renewal of such contract.