(a) Before a group hospital service corporation may be incorporated, the corporation must have collected in advance from at least 500 applicants for membership:
(1) the application fee; and
(2) an amount at least equal to the amount charged by the corporation for one month‘s premium for coverage.
(b) A group hospital service corporation must maintain a membership of at least 500 as a condition of continued operation.

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Terms Used In Texas Insurance Code 842.052

  • 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.
  • Month: means a calendar month. See Texas Government Code 312.011