(a) The commissioner has the authority to suspend or cancel the license of any medical service corporation or any agent of the corporation for violation of this chapter or of the insurance laws that may apply that are not in conflict with this chapter, after proper legal notice and opportunity of hearing, and subject to judicial review. The commissioner has the authority, after the issuance of a certificate of authority, to withdraw approval that the commissioner may have previously granted of any document required to be filed with the department under any section of this chapter. Such authority includes the right to require a medical service plan corporation to solicit in a manner required by agents’ licensing laws, and to fulfill contracts approved by the commissioner, to utilize soliciting methods provided by this chapter, or by other insurance laws, including the agents’ licensing law applying to casualty companies, or to operate in a county or counties or area different from those on which the certificate of authority was based, and to comply with other orders and regulations of the commissioner or requirements of this chapter; provided, that the contracts and practices are in compliance with this chapter and are not violative of other laws of this state. The authorization shall be deemed to be an amendment to the original certificate of authority.
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Terms Used In Tennessee Code 56-27-122

  • 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.
  • Commissioner: means the commissioner of commerce and insurance. See Tennessee Code 56-27-102
  • 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.
  • Department: means the department of commerce and insurance. See Tennessee Code 56-1-102
  • 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
  • State: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
(b) The commissioner has the power and authority to revoke and amend, after reasonable notice and hearing, any certificate, order, authority or consent made by the commissioner to a medical service plan corporation, and may also cancel or suspend the authority of the corporation to transact business in any particular county or counties or area if the commissioner finds that less than fifty-one percent (51%) of the eligible licensed doctors of medicine practicing in that county are participating physicians.
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