Illinois Code § 8

§ 8.

Except as otherwise provided by Section 3 of this Act, no person shall offer to the public any voluntary health service plan or otherwise engage in the business of a health service plan corporation without having first received a charter from the Director. No charter under this Act shall be approved by the Director for any organization seeking to provide medical or hospital services unless the organization files a concomitant application for a certificate of authority, and is approved by the Director, as a health maintenance organization pursuant to the requirements of the Health Maintenance Organization Act. Application therefor shall be made to the Director upon forms prescribed by him and shall include the following information: (a) The names, places of residence, occupations, and qualifications of the incorporators; (b) The location of the corporation's registered office, and the name and address of its registered agent; (c) A detailed financial statement, including the amount of original capital to be contributed to the corporation before it shall commence doing business, as well as the name of each contributor, and the amount by him contributed and the terms of such contribution; (d) A copy of the by-laws to be adopted by the board of trustees upon the issuance of a charter; (e) Specimen copies of all subscription certificates which it is proposed the corporation shall issue to subscribers, which certificates shall set forth in detail the rates to be charged subscribers and the nature and extent of the services which the subscriber or other beneficiary shall be entitled to receive; (f) A detailed statement as to the health services plan or plans which the corporation proposes to offer, including the rates to be charged, the benefits to be provided and the names of the counties in which it is proposed the corporation shall have authority to engage in business; (g) A copy of the proposed charter under which the corporation intends to operate. (h) Specimen copies of all agreements to be entered into between the corporation and hospitals, physicians, dentists, pharmacists and nurses, which agreements shall set forth in detail the terms and conditions upon which each shall be obliged to render service to subscribers of the corporations. After consideration of the statements and documents submitted to him and such additional investigation as he deems necessary, the Director shall issue a charter to the applicant corporation if he finds: (1) The corporation has complied with the requirements of this Act, (2) The subscription certificates to be offered by the corporation and its methods of operation would not work a fraud on the subscriber, (3) The rates to be charged and the benefits to be provided are fair and reasonable to both the subscriber and to the corporation, (4) The amount of money actually available for original capital is sufficient to carry all acquisition costs and operating expenses for a reasonable period of time from the issuance of the charter and is not less than the minimum requirements set forth in subsection (5) of Section 8 of this Act. (5) The amounts contributed as original capital of the corporation shall aggregate not less than $100,000 at the start of business. (6) Adequate and reasonable reserves are provided to insure the contracts; and (7) The corporation has contracts or agreements with hospitals, physicians, dentists, pharmacists, nurses and dental hygienists sufficient in number to carry out the terms of the contracts to be issued to these subscribers. Amendments to a charter shall be made by application to the Director in the same manner as on original application. (Source: P.A. 85-1246.)