TITLE 41

INSURANCE

CHAPTER 34

HOSPITAL AND PROFESSIONAL SERVICE CORPORATIONS

41-3415.  Professional service agreements. (1) A professional service corporation shall enter into service agreements with only licensees duly licensed by the state of Idaho.

(2)  Each such service agreement shall require the participant licensees to furnish to subscribers of the service corporation the professional services which are, under the subscriber’s contract, to be furnished by participant licensees; and this obligation so to furnish such service, as provided for in the subscriber’s contract, shall be a direct obligation of the participant licensees to the subscribers as well as to the service corporation.

(3)  Each such service agreement shall further effectively provide in substance that:

(a)  The participant licensee shall be compensated for services rendered to a subscriber in accordance with a prescribed formula or a schedule of fees contained in the agreement or attached to and made a part of the agreement, and that the licensee shall not request or receive from the service corporation any compensation for such services which is not in accord with such formula or schedule.

(b)  Compensation for services may be prorated and settled under the circumstances and in the manner referred to in section 41-3431, Idaho Code.

(c)  If the participant licensee withdraws from the service agreement, such withdrawal shall not be effective as to any subscriber’s contract in force on the date of such withdrawal until the termination of such subscriber’s contract or the next following anniversary of such subscriber’s contract, whichever date is the earlier.

(4)  The proposed form of any such service agreement shall be filed with the director and be subject to his approval, as provided in section 41-3419, Idaho Code.

(5)  This section shall not apply as to participant pharmacists.

History:

[41-3415, added 1961, ch. 330, sec. 773, p. 645; am. 1971, ch. 252, sec. 9, p. 1008.]