CHAPTER 357

An Act to amend and reenact 8§ 8$2-195.1, 82-195.2, 82-195.8 and 82-195.16
of the Code of Virginia, relating to contracts and plans for future
hospitalization, medical and surgical services, and to repeal §§ 82-195.6
and 32-195.7 of the Code of Virginia, providing that rates for such
contracts and plans shall be fixed by the State Corporation Commis-

ston.
[H 533]
Approved March 29, 1960

Be it enacted by the General Assembly of Virginia:

1. That §§ 32-195.1, 32-195.2, 32-195.8 and 32-195.16 of the Code of
Virginia be amended and reenacted as follows:

§ 32-195.1. A hospital or a group of hospitals may conduct directly
or through an agent, who may be either an individual or a non-stock
corporation, a plan or plans for furnishing prepaid hospital and similar
or related services.

§ 32-195.2. <A group of physicians may conduct directly or through
an agent, who may be either an individual or a non-stock corporation, a
plan or plans for furnishing prepaid medical or surgical and similar
or related services or both.

§ 32-195.8. * §§ 38.1-29, 88.1-44 to 88.1-57, 88.1-99 to $38.1-104,
$8.1-159 to 38.1-165, 38.1-174 to 88.1-178, and 38.1-342.1 of the laws relat-
ing to insurance shall, insofar as they are not inconsistent with this chap-
ter, apply to the operation of a plan. A plan may make payments to a non-
participating hospital or physician for services rendered a person included
in a subscription contract; but no payments shall be made by a plan toa
person included in a subscription contract unless it be for breach of con-
tract or unless it be for contractually included costs incurred by such
person or for services received and paid for by such person and rendered
by a nonparticipating hospital or physician *.
§ 32-195.16. Advertising Matter—In the operation of a plan it shall
be unlawful to use any misleading advertising matter or subscription ap-
plications or contracts, whether written or oral.

2. That §§ 32-195.6 and 32-195.7 of the Code of Virginia are repealed.
3. An emergency exists and this act is in force from its passage.