HOSPITAL AND PROFESSIONAL SERVICE CORPORATIONS
41-3419. Filing and approval of agreements and contracts. (1) No service corporation shall issue or use any basic form of service agreement or subscriber’s contract, or application, identification, supplement, or endorsement to be connected with any such agreement or contract, until such form has been filed with the director and approved by him. This provision shall not apply to agreements, contracts, applications, identification, supplements, endorsements or other forms of unique character designed for and used with relation to a particular set of circumstances.
(2) The director shall approve any such form unless disapproved by him on one or more of the grounds set forth in subsection (3) below. If not so approved or disapproved by order transmitted to the filing service corporation within sixty (60) days after the date filed, the form shall be deemed to have been approved, provided, however, that the director may extend by not more than an additional sixty (60) days the period within which he may so affirmatively approve or disapprove any such form, by giving notice to the service corporation of such extension before expiration of the initial sixty (60) day period. At the expiration of any such period as so extended, and in the absence of such prior affirmative approval or disapproval, any such form shall be deemed approved. The director may at any time, after notice and for cause shown, withdraw any such approval.
(3) The director shall disapprove any proposed form referred to in subsection (1) above which:
(a) Is in any respect not in compliance with or in violation of law; or
(b) Contains any inconsistent, ambiguous, or misleading clauses, or exceptions and conditions which deceptively affect the services or benefits purported to be provided for in the general terms of the agreement or contract; or
(c) Has any indication of its provisions which is misleading; or
(d) Is printed or otherwise reproduced in such manner as to render any provision of the form substantially illegible.
(4) In any order of disapproval the director shall state the particulars of the grounds for disapproval.
[41-3419, added 1961, ch. 330, sec. 777, p. 645; am. 1989, ch. 141, sec. 1, p. 331.]