MCA Chapter 43

in effect

Miss. Code Ann. § 83-43-1 Citation.

This chapter shall be known and may be cited as the “Nonprofit Dental Service Corporation Law”.

Miss. Code Ann. § 83-43-3 Definitions.

As used in this chapter: “Dentists” means persons holding a license to practice dentistry under Sections 73-9-1 through 73-9-65, Mississippi Code of 1972. “Dental services” include the general and usual services rendered and care administered by dentists as defined in Sections 73-9-1 through 73-9-65, Mississippi Code of 1972. “Nonprofit dental service corporation” includes a corporation organized and operated under the provisions of Section 79-11-101, Mississippi Code of 1972, and all other applicable statutes governing nonprofit corporations. “State Board of Health” means Mississippi State Board of Health. “Court” means the chancery court of the county where the principal office of the nonprofit dental corporation is or is to be located.

Miss. Code Ann. § 83-43-5 Unauthorized nonprofit dental service forbidden.

It shall be unlawful for any person, copartnership, association, common law trust, or corporation, except when especially organized and authorized under the provisions of the nonprofit corporation statutes for the purpose, to establish, maintain, or operate a nonprofit dental service plan whereby dental services may be provided to persons or groups of persons for prepayment, periodical, or lump sum payments, but this shall not be construed as preventing a person, copartnership, association, common law trust, or corporation from furnishing dental services among its or his employees when the employee is not charged for such service. Nor shall any provision in this chapter be construed to apply to beneficial, benevolent, fraternal, benefit societies having a lodge system and representative form of government.

Miss. Code Ann. § 83-43-7 Regulation and supervision.

A nonprofit dental service corporation shall be subject to regulation and supervision by the state board of health, state auditor, and the attorney general as provided by this chapter. It shall not be subject to the laws of this state now in force, except as herein specifically stated, relating to insurance and corporations engaged in the business of insurance, nor to any law hereafter enacted relating to insurance and corporations engaged in the business of insurance, unless such law specifically and in exact terms applies to such nonprofit dental service corporation.

Miss. Code Ann. § 83-43-9 License.

A nonprofit dental service corporation may not enter into dental service contracts under the provisions hereof until it has procured a formal certificate or license from the state board of health authorizing it to do so. Application for such certificate of authority or license shall be made on such forms as the state board of health may prescribe and shall be accompanied by the following documents: (a) certified copy of charter of incorporation, (b) certified copy of current bylaws, (c) an affidavit of the secretary of the Mississippi State Board of Dental Examiners setting forth that he has satisfactory evidence that at least twenty percent (20%) of the licensed dentists residing and actively practicing in the state have agreed to render professional service to subscribers under such plan, (d) a certificate from the Mississippi State Board of Dental Examiners approving the licensing of such dental service corporation, and (e) such other information as the state board of health may require concerning the public interest, welfare, and necessity of licensing such dental service corporation. The state board of health shall issue a certificate of authority or license upon payment of a fee of Twenty-five Dollars ($25.00) and upon being satisfied that the public interest, welfare, and necessity will be served by so doing. All licenses issued to every such corporation shall expire on the last day of the next succeeding March, but shall be subject to annual renewal under the foregoing terms and conditions.

Miss. Code Ann. § 83-43-11 Scope of service.

A nonprofit dental service corporation may, by its articles of incorporation, its bylaws, or resolutions of its board of directors, limit the dental services that it will provide for its subscribers and may divide such dental services as it elects to provide into classes or kinds; and it may enter into contracts with its subscribers or groups of subscribers to secure dental services of any kind or class so named and delimited. A nonprofit dental service corporation shall not provide dental services for its subscribers otherwise than through licensed dentists. A nonprofit dental service corporation shall provide dental services only to persons domiciled within the state; but if a subscriber regularly domiciled within the state and entitled to dental services, or any of his dependents so entitled, necessarily employs dental services within the meaning of this chapter while absent from the state, a dental service corporation to which he is a subscriber may, in its discretion and if satisfied as to the necessity for such services and satisfied that it was such as the subscriber would have been entitled to under similar circumstances in this state, pay to the dentist or dentists who rendered the services such fees and charges as would have been payable if the services had been rendered in this state. A nonprofit dental service corporation organized under the laws of this state and operating near its boundaries may, with the consent of the proper officers of and as authorized by the law of the adjacent state, provide dental services therein, but all operations of any such corporation, whether within or without this state, shall remain at all times subject to the provisions of this chapter. All dental services provided by or on behalf of a nonprofit dental service corporation shall be in accordance with the best dental practice in the community at the time, but the corporation providing such services shall not be liable for injuries resulting from negligence, misfeasance, malfeasance, nonfeasance, or malpractice on the part of any officer or employee or on the part of any dentist in the course of rendering dental services to subscribers; and the corporation may so provide in its contracts with subscribers.

Miss. Code Ann. § 83-43-13 Rights of dentists.

Every dentist practicing within the area covered by any nonprofit dental service corporation shall have the right, on complying with such regulations as the corporation may make and with the approval of the state board of health, to register with such corporation for general or special dental service, as the case may be, within that area. Any nonprofit dental service corporation may, with the approval of the state board of health and the state board of dental examiners, remove from its register the name of any dentist, after due notice and hearing, for cause satisfactory to the corporation. A nonprofit dental service corporation shall impose no restrictions on the dentists who administer to its subscribers as to methods of diagnosis or treatment. The relation between a subscriber or any of his dependents and the dentist shall be identical with the relation that ordinarily exists in the community between such doctor and his patient. No person shall be permitted to interfere with a patient’s choice or selection of his dentist after that choice or selection has been made by an adult of sound mind; and any dentist shall have freedom of choice in registering for services with the corporation and may refuse to accept individual cases, so long as such refusal does not have the effect of an abrogation or revocation of any agreement existing between him and the corporation prior to its expiration. All matters, disputes, or controversies relating to the dental services rendered by the dentists or any questions involving professional ethics shall be considered, acted upon, disposed of, and determined by dentists, as selected in a manner prescribed in the bylaws of the nonprofit dental service corporations.

Miss. Code Ann. § 83-43-15 Corporate rights and powers.

In addition to the rights and powers that may be exercised by nonprofit corporations under Sections 79-11-1 through 79-11-33, Mississippi Code of 1972, nonprofit dental service corporations created and organized under the provisions of this chapter shall be authorized to exercise the following rights and powers, to wit: To encourage, foster, and finance professional and scientific study and research in the general field of dentistry; to make studies and conduct investigations designed to develop information, statistics, and knowledge pertaining to all aspects of dental service payment plans, and to assist in the education and enlightenment of the public concerning the needs and advantages of adequate dental treatment and care. To enter into and carry out contracts for furnishing dental services to individuals and groups of individuals, provided, however, that no contract by or on behalf of any nonprofit dental service corporation shall provide for the payment of any cash or other material benefit by that corporation to a subscriber on account of illness or injury nor be in any way related to the payment of any such benefit by any other agency. To procure and enter into contracts with dentists, hygienists, laboratory technicians, oral surgeons, hospitals, pharmacies, and other persons, firms, and corporations to carry out any of the objects and purposes of this corporation. To operate an administrative office and dental clinics, laboratories, and other facilities appropriate or convenient for the rendition of dental services, and to employ personnel for the conduct thereof. To establish and maintain funds secured through payments to be used to defray the cost of dental services, to predicate payments into such funds on actuarial prediction and experience, and to issue contracts entitling the holder or subscriber thereto to dental services as enumerated therein and subject to the terms and provisions as may be therein provided. To establish eligibility requirements for individuals and groups of individuals seeking to subscribe to its dental service plans, and to determine the eligibility thereunder of persons subscribing to its contracts. Any and all requisites thus fixed and all contracts for dental services offered by the corporation shall be subject to the approval of the state board of health. To accept gifts, donations, contributions and property by bequest or devise, or in trust, and to use and apply the same in furtherance of the objects and purposes of such corporation.

Miss. Code Ann. § 83-43-17 Limitation of subscriber’s contract.

A nonprofit dental service corporation may, as a condition precedent to entering into a contract with an applicant or group of applicants for dental service: Require a physical examination of the applicant and of each of his dependents, if any, and proof of his or their substantial freedom from any disease or condition requiring immediate dental service or likely to require it within the next six (6) months before a contract becomes effective, or require a waiting period after a contract is entered into and before the subscriber is entitled to dental service, or require that the subscriber or someone on his behalf shall pay the stated fee or fees for dental services in the care of any given illness or injury or other condition requiring dental service before becoming entitled to treatment under the terms of the contract. Provided, however, that nothing in this chapter shall be construed to require any individual, or group of individuals, to become a subscriber or subscribers to any such plan against his or their own free will and accord.

Miss. Code Ann. § 83-43-19 Officers may subscribe for service.

Every department, commission, officer, or other agency of the state, or of any political subdivision thereof, who is authorized or charged by law with the duty of providing dental services within the meaning of this chapter for persons unable to provide it entirely at their own expense, or to procure it through persons to whose support and assistance they are by law entitled, is hereby empowered in the exercise of his authority to provide such service if, in his judgment, it is in the public interest so to do, through a subscription or subscriptions paid for from any lawfully available public funds with any nonprofit dental service corporation on behalf of any person or persons entitled to such relief. Provided, however, that the extent of public funds contributed to such services, other than those funds disbursed by the state welfare program, shall not exceed the limitations authorized by Section 25-15-103, Mississippi Code of 1972.

Miss. Code Ann. § 83-43-21 Financial report.

Every nonprofit dental service corporation shall, on or before the first day of March of every year, file with the state auditor of public accounts a statement verified by at least two (2) of the principal officers of the corporation, summarizing its financial activities during the calendar year immediately preceding and showing its financial condition at the close of business on the thirty-first day of December of that year. Such statement shall be in such form and shall contain such matter as the state auditor prescribes. The financial affairs and status of every such corporation may be examined by the attorney general of the state not less frequently than once in every three (3) years and, for that purpose, the attorney general and his assistants shall be entitled to the aid and cooperation of the officers and employees of the corporation and shall have convenient access to all books, records, papers, and documents that relate to the business of the corporation. They shall have authority to examine the officers, agents, employees, and subscribers for the dental services of the corporation, all cooperating dentists registered with the corporation, and all other persons having or having had substantial part in the work of the corporation in relation to its affairs, transactions, and financial condition. Such examinations shall be made at such times and with such frequency as the attorney general may determine. He or the state auditor may, at any time without making such examination, call on any such corporation for a written report, authenticated by at least two (2) of its principal officers, concerning the financial affairs and status of the corporation.

Miss. Code Ann. § 83-43-23 Investment.

Surplus funds, if any, of any such corporation may be invested and, if invested, shall be in compliance with the requirements of law for the investment of the surplus of life insurance companies.

Miss. Code Ann. § 83-43-25 Dental service report.

Every nonprofit dental service corporation shall, on or before the first day of March of every year, file with the state board of health a report of its activities other than its financial activities during the calendar year immediately preceding. Every such report shall be authenticated by at least two (2) of the principal officers of the corporation and shall be in such form and contain such matter as the state board of health prescribes. The state board of health is hereby authorized to inquire into the activities of the nonprofit dental service corporations and to determine whether the corporation is providing adequate dental services to its subscribers in accordance with the best dental practice in the community. The secretary of the state board of health and his agents shall be entitled to the aid and cooperation of the officers and employees of the corporation and shall have convenient access to all books, records, papers, and documents that relate to the business of the corporation. They shall have authority to examine the officers, agents, employees and subscribers for the service of the corporation, all dentists registered with the corporation, and all other persons having or having had substantial part in the work of the corporation in relation to the affairs, transactions, and conditions of the corporation other than financial. Examinations may be made at such times and with such frequency as the secretary of the state board of health may determine. The secretary of the state board of health may, at any time without making any such examination, call on any such corporation for a written report, authenticated by at least two (2) of its principal officers, concerning the affairs of the corporation other than its financial affairs. In the event the secretary of the state board of health finds that the nonprofit dental service corporation does not provide adequate dental services to its subscribers in accordance with the best dental practice in the community, the said secretary may notify the corporation of his findings and order the corporation, in specific terms, to extend or improve the dental services furnished by the corporation. Within thirty (30) days after receipt of such notice from the secretary, the corporation may petition the court to show cause why the action of the secretary of the state board of health should not be set aside or modified. The court is given jurisdiction and authority to entertain and determine any such proceeding and controversy.

Miss. Code Ann. § 83-43-27 Agent’s performance of functions.

Any nonprofit dental service corporation may select any person, copartnership, association, common law trust, or corporation to act as its agent in the performance of any of its functions. Any such delegation of authority shall not operate to release the nonprofit dental service corporation from any of its duties and responsibilities required by this chapter.

Miss. Code Ann. § 83-43-29 Penalties.

Any dentist and any other person, copartnership, association, common law trust, or corporation who violates any provision of this chapter or of any order of the state board of health, of the attorney general, or of the state auditor made pursuant thereto, or that either prevents the state board of health or the state officers to discharge any duties imposed upon them by this chapter, or fraudulently procures or attempts to procure any benefits under this chapter, or that willfully makes any false statement in any proceeding or report under the provisions of this chapter, shall be guilty of a misdemeanor and, on conviction thereof, shall be sentenced to pay a fine of not more than Five Hundred Dollars ($500.00), or to be imprisoned for not more than six (6) months, or both such fine and imprisonment. Any act or default by any corporation, association, or common law trust in violation of any provisions of the chapter, or of any order of the department made pursuant thereto shall be deemed to be the act or default of its officers or directors who participated in authorizing or effecting such act or default, or who knowingly permitted it.

Miss. Code Ann. § 83-43-31 Enforcement.

When necessary to effect the purposes of this chapter, in addition to all other remedies in law or equity, the attorney general or state auditor, the secretary of the state board of health, or either of them, may be and are hereby authorized to petition the court for a mandamus or injunction to prevent any violation of the provisions of this chapter, or the continuance of any such violation, or to enforce compliance herewith. The court is hereby vested with authority to entertain jurisdiction on any such petition to determine the cause and to issue such process as may be necessary to accomplish the purposes of this chapter.

Miss. Code Ann. § 83-43-33 Partial tax exemption.

Every corporation organized pursuant to, or subject to, the provisions of this chapter is hereby declared to be a charitable and benevolent institution, and its funds and property shall be exempt from taxation, except, however, that such corporation shall not be exempt from ad valorem taxes upon real estate and motor vehicles owned by it.

Miss. Code Ann. § 83-43-35 Dissolution or liquidation.

Any dissolution or liquidation of a corporation subject to the provisions of this chapter shall be conducted under the supervision of the attorney general and the state board of health. All assets of the corporation shall, upon dissolution or liquidation and after adequate provision is made for the discharge of all debts and obligations of the corporation, be transferred and distributed to the state board of health to be expended by it in providing dental care and treatment for indigent persons.

Miss. Code Ann. § 83-43-37 Construction.

It is hereby declared to be the purpose and intent of this chapter and the policy of the legislature to authorize qualified dentists engaged in private practice to provide adequate dental services for residents of this state through a sound prepayment plan with the cooperation of the Mississippi Dental Association and state board of dental examiners, with appropriate state supervision to insure that subscribers thereto will continue to receive the highest type professional dental care with their free and voluntary choice of dentists, and at the same time it is the purpose and intent of this chapter and the policy of the legislature to maintain the standing and promote the progress of the science and art of dental surgery in this state. The courts of this state are hereby directed to construe this chapter liberally in order to accomplish those ends.