Opinion ID: 1923285
Heading Depth: 1
Heading Rank: 2

Heading: Commissioner's Supervisory Power.

Text: While it is nowhere made explicit that the service sold by plaintiff under its special charter, and authorized for sale by non-profit hospital service corporations under the general law, is insurance, [4] both plaintiff's charter and the general law grant the Commissioner supervisory powers as previously noted,not because the service is insurance, but because the commissioner's office was considered a proper place for the responsibility to rest. Among these powers is the granting of the original and renewal licenses (Charter, Section 6, and 24 M.R.S. A. §§ 2301, 2304, and 371) qualification for which requires, inter alia, submission to and approval by the Commissioner of copies of the proposed contracts. The charter, Section 6 provides that the Commissioner shall annually issue a    license upon being satisfied    (b) That the rates charged and benefits to be provided are fair and reasonable.    The Public Law 24 M.R.S.A. § 2305 provides that: The commissioner shall issue a license on payment of a fee as provided in (24 M.R.S.A.) section 371, subsection 3, if the applicant meets the following requirements:       2. Contracts. The contracts    obligate each participating party to render service to which each subscriber may be entitled under the terms of the contract issued to the subscribers.       24 M.R.S.A. § 371 prescribes the fee for issuing or renewing a license to a nonprofit hospital or medical service organization under section 2305   . It is explicit that the license of plaintiff is renewable annually. It is implicit in public law, 24 M.R.S.A. §§ 371 and 2305 that licenses are issued annually. For the Commissioner to determine annually that benefits to be provided by plaintiff and that contracts under the general law obligate each participating party, etc., copies of proposed contracts must be submitted. Charter Section 10 and public laws § 2306 require annual reports, authorize the Commissioner to prescribe the form and content thereof, by which he may demand disclosure of existing and proposed contracts. Both charter Section 11 and public laws § 2307 in substantially identical language give the Commissioner investigatory powers into the affairs of the corporation. By this authority he may secure disclosure of existing and proposed contracts. Additionally, § 2314 of the general law empowers Commissioner to revoke a license for cause. Disclosing at this point that we conclude, post, that the public law governs, it is here held that the Commissioner through his power to license and revoke based upon the criteria expressed in the statute has supervision of the contracts of non-profit and medical service organizations.