STATUS BY VIRTUE OF THE CONVERSION, UNLESS THE PLAN PROVIDES

SPECIFICALLY TO THE CONTRARY.

(D) THE CERTIFICATE OF AUTHORITY, AGENT APPOINTMENTS,
FORMS, AND OTHER FILINGS WHICH ARE IN EXISTENCE AT THE TIME OF
THE CONVERSION SHALL CONTINUE IN FULL FORCE AND EFFECT UPON
CONVERSION IF THE CORPORATION AT ALL TIMES REMAINS QUALIFIED TO
ENGAGE IN BUSINESS IN THIS STATE.

(E) ALL OUTSTANDING CONTRACTS OF THE CONVERTING CORPORATION
SHALL REMAIN IN FULL FORCE AND EFFECT AND NEED NOT OTHERWISE BE
ENDORSED UNLESS ORDERED BY THE COMMISSIONER.

(F) THE COMMISSIONER MAY CONDUCT A HEARING CONCERNING THE
PROPOSED CONVERSION OF A NONPROFIT HEALTH SERVICES CORPORATION
INTO A FOR-PROFIT INSURER.-----------------------------------------

490J.

(A)  (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE
MEANINGS INDICATED.

(2)  "PROVIDER" MEANS ANY PERSON, INCLUDING A
PHYSICIAN OR HOSPITAL, WHO IS LICENSED OR OTHERWISE AUTHORIZED TO
PROVIDE HEALTH CARE SERVICES WITHIN THE SCOPE OF THE LICENSE OR
AUTHORIZATION.

(3)   "PREFERRED PROVIDER ARRANGEMENT" MEANS ANY
CONTRACT OR AGREEMENT, FORMAL OR OTHERWISE, UNDER WHICH HEALTH
SERVICES ARE TO BE PROVIDED TO CERTAIN PERSONS ON A PREFERENTIAL
BASIS.

(4)   "PREFERENTIAL BASIS" MEANS THAT THE PATIENT
SUBSCRIBER OR OTHER 3RD PARTY BENEFICIARY UNDER A PREFERRED
PROVIDER ARRANGEMENT IS ENTITLED TO RECEIVE HEALTH CARE SERVICES
FROM PREFERRED PROVIDERS AT NO COST, OR AT A REDUCED FEE, OR
UNDER MORE FAVORABLE TERMS THAN WOULD BE THE CASE IF THE
BENEFICIARY OR PATIENT RECEIVED SIMILAR SERVICES FROM A
NONPREFERRED PROVIDER.

(5)  "PREFERRED PROVIDER" MEANS THE PROVIDER WHO HAS
AGREED TO THE PREFERENTIAL TERMS OF A PREFERRED PROVIDER
ARRANGEMENT.

(6)  "NONPREFERRED PROVIDER" MEANS A PROVIDER WHO IS
NOT A PREFERRED PROVIDER.

(B)  (1) EACH INSURER, NONPROFIT HEALTH SERVICE PLAN, DENTAL
PLAN ORGANIZATION, OR SIMILAR ORGANIZATION, AND EACH EMPLOYER,
ADMINISTRATOR, OR OTHER ENTITY ESTABLISHING A PREFERRED PROVIDER
ARRANGEMENT SHALL, UPON REQUEST OF THE COMMISSIONER, REGISTER
SUBMIT THE ARRANGEMENT WITH TO THE INSURANCE COMMISSIONER . A

- 4881 -

WILLIAM DONALD SCHAEFER, Governor

Ch. 754