LD 1490
pg. 6
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LR 1914
Item 1

 
B. Each health insurance affiliate shall expressly have
corporate purposes that are consistent with or are in
furtherance of the charitable and benevolent purposes of
its nonprofit and charitable public charity owners.

 
(1) Subject to subparagraph (2), the health
insurance affiliate may further its purposes as
described in this paragraph by:

 
(a) The provision of direct services that are
consistent with or further the charitable and
benevolent purposes of its nonprofit and
charitable public charity owners; or

 
(b) The payment of distributions or dividends
to any nonprofit and charitable public charity
owner.

 
(2) The payment by the health insurance affiliate of
distributions or dividends to any owner does not
fulfill a health insurance affiliate's purposes as
described in this paragraph if the payment of such
distributions or dividends unreasonably interferes
with the health insurance affiliate's ability to
fulfill its purposes as described in this paragraph
through the provision of direct services as described
in subparagraph (1), division (a). Payment of
dividends and distributions may be made to a for-
profit owner consistent with this subparagraph but
may not be considered to fulfill the health insurance
affiliate's purposes as described in this paragraph.

 
(3) If the nonprofit hospital and medical service
organization holding an ownership interest in a
health insurance affiliate materially changes its
form and the Superior Court has approved or approved
with modifications a charitable trust plan or
modified charitable trust plan, the purposes as
described in this paragraph of the health insurance
affiliate terminate unless the Superior Court
determines otherwise.

 
C. Any charitable entity public charity that owns or
controls an ownership interest in a health insurance
affiliate must be treated as having acquired that
ownership interest in furtherance of the charitable
purposes of the charitable entity public charity.

 
D. The Attorney General may enforce the purposes as described
in paragraph B of a health insurance affiliate under this
subsection under the Attorney General's


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