1. (a) Before a group hospital service corporation may be incorporated, the corporation must have collected in advance from at least 500 applicants for membership:

   1. (1) the application fee; and
   2. (2) an amount at least equal to the amount charged by the corporation for one month's premium for coverage.
2. (b) A group hospital service corporation must maintain a membership of at least 500 as a condition of continued operation.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.