SPIRO T. AGNEW, Governor                      1111

(1)   That the applicant has been organized bona fide for the pur-
pose of establishing, maintaining and operating a nonprofit health
service plan;

(2)   That each contract executed, or proposed to be executed, by
the applicant and any hospital, physician, chiropodist, pharmacist, or
dentist or optometrist, for the furnishing of hospital, medical, chir-
opodial, pharmaceutical, or dental or optometric service to the sub-
scribers to the health service plan, obligates, or will when executed,
obligate each hospital, physician, chiropodist, pharmacist, or dentist
or optometrist party thereto to render the service to which each sub-
scriber may be entitled under the terms and conditions of the various
contracts issued, or proposed to be issued, by the applicant to sub-
scribers to the plan, and that each subscriber shall be entitled to
reimbursement for any such chiropodial or optometric service,
whether the said service is performed by a doctor of medicine, for]
duly licensed chiropodist, or duly licensed optometrist.

(3)   That each contract issued, or proposed to be issued, to sub-
scribers to the plan is in a form approved by the Insurance Com-
missioner, and that the rates [charges] charged, or proposed to be
charged, for each form of such contract are fair and reasonable;

(4)   That no contributions to the funds of the corporation for
working capital are repayable by the corporation except out of the
earned premiums over and above operating expenses, payments to
participating hospitals, physicians, chiropodists, pharmacists, ([or]
dentists, or optometrists and such reserve as the Insurance Commis-
sioner may deem adequate;

(5)   That the amount of money actually received by the applicant
upon the term specified in paragraph (4) hereof for working capital
is sufficient to carry all acquisition costs and operating expenses for
a period of at least three months from the date of the issuance of
the certificate of authority or license, but in no case to be less than
ten thousand dollars ($10,000).

(c) Authority to issue contracts.—Any corporation to which such
certificate of authority or license has been issued, until expiration or
revocation thereof, shall be authorized to issue contracts in the form
or forms filed with the Insurance Commissioner, to the persons who
may become subscribers to such plan.

356.

No corporation subject to the provisions of this subtitle shall
amend its certificate of incorporation, its bylaws, the terms and pro-
visions of contracts executed or to be executed with hospitals, physi-
cians, chiropodists, pharmacists, or dentists, or optometrists, and the
terms and provisions of contracts issued, or proposed to be issued,
to subscribers of the plan, until such proposed amendments have been
first submitted to, and approved by, the Insurance Commissioner;
nor shall any change be made in the table of rates charged, or pro-
posed to be charged, to subscribers for any form of contract issued
or to be issued for hospital, medical, chiropodial, pharmaceutical, or
dental or optometric care until such proposed change has been sub-
mitted to, and approved by, the Insurance Commissioner. Upon the
adoption of any such amendment or change, following its approval
by the Insurance Commissioner, such corporation shall file a copy
thereof with the Insurance Commissioner, duly certified to by at
least two (2) of the executive officers of such corporation.