40-19c03. Organization; purposes; board of directors.
40-19c03
40-19c03. Organization; purposes; board of directors.Nonprofit corporations may be organized under the nonprofit medical andhospital service corporation act for the purpose of entering intocontracts with participating health care providers and participating hospitalsto provide professional and hospital services for subscribers as may bedesignated in subscription agreements. Such corporations shall also indemnifysubscribers as designated in subscription agreements for services which may bereceived from nonparticipating health care providers or nonparticipatinghospitals. Such corporations may also provide service or indemnity for otherhealth services or facilities but not to exceed reasonable and customarycharges that a subscriber may incur for these services. The affairs of any suchcorporation shall be managed by a board of directors of not less than 15members as specified by the articles of incorporation composed of: Personslicensed under the Kansas healing arts act and trustees or administrators ofhospitals who participate in providing professional and institutional serviceto subscribers and members of the public exclusive of persons licensed underthe Kansas healing arts act and hospital trustees or administrators who, at thetime of their election, are subscribers. Beginning with the election ofdirectors immediately following the effective date of this act, the board ofdirectors at all times shall include at least one person licensed under theKansas healing arts act to practice allopathic medicine and surgery,osteopathic medicine and surgery and chiropractic. Two members of the publicwho are subscribers shall be appointed to the board of directors by thegovernor of the state of Kansas. The members of the public, exclusive ofphysicians and hospital trustees or administrators, shall at all times comprisea majority of the membership of the board of directors. The directors shalltake the oath of office as in other corporations and duplicates of suchsubscribed oaths shall be forwarded at the time of election to the commissionerof insurance for filing. The bylaws shall specify the number of directorsnecessary to constitute a quorum which shall not be less than 10 members.
History: L. 1980, ch. 137, § 21; L. 1990, ch. 168, § 1; July 1.