Sec. 842.052. MINIMUM MEMBERSHIP REQUIREMENTS. (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.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Structure Texas Statutes
Title 6 - Organization of Insurers and Related Entities
Subtitle C - Life, Health, and Accident Insurers and Related Entities
Chapter 842 - Group Hospital Service Corporations
Subchapter B. Formation and Structure of Group Hospital Service Corporation
Section 842.051. Application for Corporate Charter; Nonprofit Status Required