2000 Minnesota Statutes

     62G.16 Subscribers contracts. 

    Subdivision 1.    Copy to subscriber.  A legal service 
 plan corporation shall deliver to every subscriber, except those 
 covered as a spouse or dependent of another subscriber, a copy 
 of the subscribers contract or a certificate evidencing that the 
 subscriber is covered by a group subscribers contract. 

    Subd. 2.    Statement of terms and conditions.  The 
 subscribers contract shall state in a clear and understandable 
 manner all legal services to be provided, in whole or in part, 
 to the subscriber and all terms, conditions, limitations and 
 exceptions under which the legal services shall be provided or 
 paid for, including any provisions for coordination of benefits 
 or subrogation, and including any provisions or conditions under 
 which services from participating providers are not covered. 

    Subd. 3.    Free choice preserved.  Except as provided 
 in section 62G.15, subdivision 4, nothing in the subscribers 
 contract shall deny the subscriber free choice of the provider 
 within a particular class of providers who is to serve the 
 subscriber, and there shall be no interference with a 
 provider-subscriber relationship. 

    Subd. 4.    Required disclosures.  Except for group 
 contracts or certificates, a subscribers contract or other 
 writing furnished to the subscriber with the contract, shall 
 state the periodic subscription charge, the effective date, the 
 expiration date or period of renewal, and the terms upon which 
 the contract may be terminated, canceled, continued, or renewed. 

    Subd. 5.    Documents constituting contract.  A 
 subscribers contract or certificate shall state that it and all 
 riders and endorsements, together with any application if signed 
 by the subscriber, identification issued, and the applicable 
 benefit schedules on file at the home office of the legal 
 service plan corporation and with the commissioner, shall 
 constitute the entire contract between the legal service plan 
 corporation and the subscriber. 

    Subd. 6.    Payments regulated.  Except as otherwise 
 provided by this subdivision, no subscribers contract shall 
 provide for the payment of any cash or other material benefit to 
 the subscriber or the subscriber's estate.  A subscribers 
 contract may provide for the payment for legal services rendered 
 or furnished by a nonparticipating provider to the extent such 
 legal services are covered by the contract.  A subscriber who is 
 compensated by the provider for services received is subrogated 
 to the provider's right against the legal service plan. 

    Subd. 7.    Limits on subscriber contract liability.  
 Every subscribers contract or certificate shall provide in 
 substance that the subscriber has no personal liability to the 
 provider rendering legal services, except for those services or 
 parts of service not covered by the subscribers contract. 

    Subd. 8.    Filing.  No legal service plan corporation 
 shall deliver or issue for delivery in this state any 
 subscribers contract, endorsement, rider, amendment or 
 application until a copy of the form thereof has been filed with 
 the commissioner, subject to disapproval by the commissioner. 
 The commissioner also may, by rule, exempt from filing those 
 subscribers contracts issued to groups upon such reasonable 
 conditions and restrictions as the commissioner may require. 

    Subd. 9.    Disapproval.  All forms received by the 
 commissioner shall be deemed filed 60 days after received unless 
 disapproved by order transmitted to the legal service plan 
 corporation stating that the form used in a specified respect is 
 contrary to law, contains a provision or provisions which are 
 unfair, inequitable, misleading, inconsistent or ambiguous, or 
 is in part illegible.  It shall be unlawful to issue or use a 
 document disapproved by the commissioner. 

    Subd. 10.    Hearing.  An order of disapproval shall 
 state that a hearing will be granted within 20 days upon written 
 request.  The commissioner shall conduct the hearing within 20 
 days after receipt of the request and shall give not less than 
 ten days' written notice of the time and place and matters to be 
 considered.  Within 15 days after the hearing, the commissioner 
 shall affirm, reverse, or modify previous action in writing, 
 specifying the reasons therefor.  Pending the hearing and 
 decision thereon, the commissioner may postpone the effective 
 date of the previous action. 

    Subd. 11.    Appeal.  An order or decision of the 
 commissioner under this section shall be subject to appeal in 
 accordance with chapter 14. 

    Subd. 12.    Construction.  All subscribers contracts 
 covering subscribers resident in this state shall be deemed to 
 have been made in this state and shall be construed pursuant to 
 Minnesota law when the position or rights of a Minnesota 
 subscriber or covered group member are at issue.  It is unlawful 
 for any legal service plan corporation to solicit or make any 
 subscriber contract in violation of the provisions of sections 
 62G.01 to 62G.25. 

    HIST: 1978 c 785 s 16; 1983 c 247 s 33; 1986 c 444; 1986 c 455 
 s 19