{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-4212.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-4212.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-4212.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-4212.html"}],"law_id":80058,"edition_id":1,"section_id":80058,"structure_id":12968,"section_number":"38.2-4212","catch_line":"Board of directors of nonstock corporation operating plan","history":"Code 1950, \u00a7\u00a7 32-195.5:1, 32-195.5:2; 1972, c. 429, \u00a7\u00a7 38.1-816, 38.1-817; 1974, c. 54; 1979, c. 721; 1980, c. 682; 1982, c. 129; 1985, c. 233; 1986, c. 562.","full_text":"A\n\nNotwithstanding the provisions of \u00a7\u00a7 13.1-853, 13.1-854 and 13.1-855, a nonstock corporation operating a plan pursuant to \u00a7\u00a7 38.2-4202, 38.2-4203, 38.2-4204, or \u00a7 38.2-4208 shall be subject to the following:1\n\nThe board of directors of the nonstock corporation shall consist of no more than fifteen members. However, if two or more nonstock corporations merge, the board of directors of the new or surviving nonstock corporation may consist of no more than twenty members. Further, the board of directors may be increased to a size not exceeding the aggregate number of directors on the merging nonstock corporations&#8217; boards for the balance of the year in which merger occurs and for the following five years.2\n\nExcept as permitted by subsection B of this section, a majority of the members of the board of directors of the nonstock corporation shall be persons who are covered by subscription contracts issued by the nonstock corporation and who are not providers of health care services, or employees or salaried officers of the nonstock corporation.B\n\nNotwithstanding the provisions of &#xA7;&#xA7; 13.1-853, 13.1-854 and 13.1-855, any nonstock corporation operating a plan pursuant to &#xA7; 38.2-4203 may have a board of directors consisting of a majority of providers of health care services.C\n\nAs used in this section, &#8220;providers of health care services&#8221; shall include, but not be limited to, physicians, pharmacists, nurses, physical therapists, hospital administrators, employees or majority or controlling stockholders of hospitals, and other persons furnishing health-related services.D\n\nThis section shall not apply to any foreign nonstock corporation licensed in this Commonwealth on or before July 1, 1980.","order_by":null,"text":{"0":{"id":286692,"text":"Notwithstanding the provisions of \u00a7\u00a7 13.1-853, 13.1-854 and 13.1-855, a nonstock corporation operating a plan pursuant to \u00a7\u00a7 38.2-4202, 38.2-4203, 38.2-4204, or \u00a7 38.2-4208 shall be subject to the following:","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":286693,"text":"The board of directors of the nonstock corporation shall consist of no more than fifteen members. However, if two or more nonstock corporations merge, the board of directors of the new or surviving nonstock corporation may consist of no more than twenty members. Further, the board of directors may be increased to a size not exceeding the aggregate number of directors on the merging nonstock corporations&#8217; boards for the balance of the year in which merger occurs and for the following five years.","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":286694,"text":"Except as permitted by subsection B of this section, a majority of the members of the board of directors of the nonstock corporation shall be persons who are covered by subscription contracts issued by the nonstock corporation and who are not providers of health care services, or employees or salaried officers of the nonstock corporation.","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"B"},"3":{"id":286695,"text":"Notwithstanding the provisions of &#xA7;&#xA7; 13.1-853, 13.1-854 and 13.1-855, any nonstock corporation operating a plan pursuant to &#xA7; 38.2-4203 may have a board of directors consisting of a majority of providers of health care services.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A2","next_prefix":"C"},"4":{"id":286696,"text":"As used in this section, &#8220;providers of health care services&#8221; shall include, but not be limited to, physicians, pharmacists, nurses, physical therapists, hospital administrators, employees or majority or controlling stockholders of hospitals, and other persons furnishing health-related services.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"5":{"id":286697,"text":"This section shall not apply to any foreign nonstock corporation licensed in this Commonwealth on or before July 1, 1980.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C"}},"ancestry":[{"id":12968,"edition_id":1,"name":"In General","identifier":"1","label":"article","depth":3,"order_by":1,"parent_id":12967,"metadata":{},"date_created":"2026-06-26 03:44:05","date_modified":"2026-06-26 03:44:05","permalink":{"id":216659,"object_type":"structure","relational_id":12968,"identifier":"1","token":"38.2\/42\/1","url":"\/38.2\/42\/1\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12967,"edition_id":1,"name":"Health Services Plans","identifier":"42","label":"chapter","depth":2,"order_by":1,"parent_id":12698,"metadata":{},"date_created":"2026-06-26 03:44:05","date_modified":"2026-06-26 03:44:05","permalink":{"id":216657,"object_type":"structure","relational_id":12967,"identifier":"42","token":"38.2\/42","url":"\/38.2\/42\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12698,"edition_id":1,"name":"Insurance","identifier":"38.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":210661,"object_type":"structure","relational_id":12698,"identifier":"38.2","token":"38.2","url":"\/38.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":78890,"structure_id":12968,"section_number":"38.2-4200","catch_line":"Applicability of chapter","url":"\/38.2-4200\/","token":"38.2\/42\/1\/38.2-4200","metadata":false},{"id":76897,"structure_id":12968,"section_number":"38.2-4201","catch_line":"Definitions","url":"\/38.2-4201\/","token":"38.2\/42\/1\/38.2-4201","metadata":false},{"id":71531,"structure_id":12968,"section_number":"38.2-4202","catch_line":"Hospital services plans","url":"\/38.2-4202\/","token":"38.2\/42\/1\/38.2-4202","metadata":false},{"id":80676,"structure_id":12968,"section_number":"38.2-4203","catch_line":"Medical or surgical services plans","url":"\/38.2-4203\/","token":"38.2\/42\/1\/38.2-4203","metadata":false},{"id":68874,"structure_id":12968,"section_number":"38.2-4204","catch_line":"Merger of nonstock corporations","url":"\/38.2-4204\/","token":"38.2\/42\/1\/38.2-4204","metadata":false},{"id":59642,"structure_id":12968,"section_number":"38.2-4204.1","catch_line":"Commission approval of mergers of nonstock corporations operating prepaid hospital, medical and surgical services plans","url":"\/38.2-4204.1\/","token":"38.2\/42\/1\/38.2-4204.1","metadata":false},{"id":54058,"structure_id":12968,"section_number":"38.2-4205","catch_line":"Dental and optometric services","url":"\/38.2-4205\/","token":"38.2\/42\/1\/38.2-4205","metadata":false},{"id":70123,"structure_id":12968,"section_number":"38.2-4206","catch_line":"Nonstock corporation required","url":"\/38.2-4206\/","token":"38.2\/42\/1\/38.2-4206","metadata":false},{"id":84087,"structure_id":12968,"section_number":"38.2-4207","catch_line":"Existing foreign nonstock corporation","url":"\/38.2-4207\/","token":"38.2\/42\/1\/38.2-4207","metadata":false},{"id":61631,"structure_id":12968,"section_number":"38.2-4208","catch_line":"Nonstock corporation not required to act as agent","url":"\/38.2-4208\/","token":"38.2\/42\/1\/38.2-4208","metadata":false},{"id":80669,"structure_id":12968,"section_number":"38.2-4209","catch_line":"Preferred provider subscription contracts","url":"\/38.2-4209\/","token":"38.2\/42\/1\/38.2-4209","metadata":false},{"id":67453,"structure_id":12968,"section_number":"38.2-4209.1","catch_line":"Pharmacies; freedom of choice","url":"\/38.2-4209.1\/","token":"38.2\/42\/1\/38.2-4209.1","metadata":false},{"id":79670,"structure_id":12968,"section_number":"38.2-4209.2","catch_line":"Repealed","url":"\/38.2-4209.2\/","token":"38.2\/42\/1\/38.2-4209.2","metadata":false},{"id":65462,"structure_id":12968,"section_number":"38.2-4210","catch_line":"Liability of participants","url":"\/38.2-4210\/","token":"38.2\/42\/1\/38.2-4210","metadata":false},{"id":65554,"structure_id":12968,"section_number":"38.2-4211","catch_line":"Change of participants","url":"\/38.2-4211\/","token":"38.2\/42\/1\/38.2-4211","metadata":false},{"id":80058,"structure_id":12968,"section_number":"38.2-4212","catch_line":"Board of directors of nonstock corporation operating plan","url":"\/38.2-4212\/","token":"38.2\/42\/1\/38.2-4212","metadata":false},{"id":57906,"structure_id":12968,"section_number":"38.2-4213","catch_line":"Liability of participating providers upon merger of nonstock corporation","url":"\/38.2-4213\/","token":"38.2\/42\/1\/38.2-4213","metadata":false},{"id":55347,"structure_id":12968,"section_number":"38.2-4214","catch_line":"Application of certain provisions of law","url":"\/38.2-4214\/","token":"38.2\/42\/1\/38.2-4214","metadata":false},{"id":70935,"structure_id":12968,"section_number":"38.2-4214.1","catch_line":"Rehabilitation, liquidation, conservation","url":"\/38.2-4214.1\/","token":"38.2\/42\/1\/38.2-4214.1","metadata":false},{"id":69479,"structure_id":12968,"section_number":"38.2-4215","catch_line":"Payments by nonstock corporation","url":"\/38.2-4215\/","token":"38.2\/42\/1\/38.2-4215","metadata":false},{"id":83790,"structure_id":12968,"section_number":"38.2-4216","catch_line":"Repealed","url":"\/38.2-4216\/","token":"38.2\/42\/1\/38.2-4216","metadata":false},{"id":75758,"structure_id":12968,"section_number":"38.2-4216.1","catch_line":"Repealed","url":"\/38.2-4216.1\/","token":"38.2\/42\/1\/38.2-4216.1","metadata":false},{"id":76300,"structure_id":12968,"section_number":"38.2-4217","catch_line":"Reports","url":"\/38.2-4217\/","token":"38.2\/42\/1\/38.2-4217","metadata":false},{"id":73797,"structure_id":12968,"section_number":"38.2-4218","catch_line":"Subscriber to have free choice of medical practitioners available","url":"\/38.2-4218\/","token":"38.2\/42\/1\/38.2-4218","metadata":false},{"id":73334,"structure_id":12968,"section_number":"38.2-4219","catch_line":"Subscriber to be advised in writing as to benefits and limitations thereon","url":"\/38.2-4219\/","token":"38.2\/42\/1\/38.2-4219","metadata":false},{"id":57164,"structure_id":12968,"section_number":"38.2-4220","catch_line":"Interplan arrangements","url":"\/38.2-4220\/","token":"38.2\/42\/1\/38.2-4220","metadata":false},{"id":74708,"structure_id":12968,"section_number":"38.2-4221","catch_line":"Services of certain practitioners other than physicians to be covered","url":"\/38.2-4221\/","token":"38.2\/42\/1\/38.2-4221","metadata":false},{"id":70849,"structure_id":12968,"section_number":"38.2-4222","catch_line":"Licensing of nonstock corporations","url":"\/38.2-4222\/","token":"38.2\/42\/1\/38.2-4222","metadata":false},{"id":68899,"structure_id":12968,"section_number":"38.2-4223","catch_line":"Renewal of license","url":"\/38.2-4223\/","token":"38.2\/42\/1\/38.2-4223","metadata":false},{"id":63881,"structure_id":12968,"section_number":"38.2-4224","catch_line":"Licensing of agents","url":"\/38.2-4224\/","token":"38.2\/42\/1\/38.2-4224","metadata":false},{"id":75183,"structure_id":12968,"section_number":"38.2-4225","catch_line":"Repealed","url":"\/38.2-4225\/","token":"38.2\/42\/1\/38.2-4225","metadata":false},{"id":61125,"structure_id":12968,"section_number":"38.2-4226","catch_line":"Taxation","url":"\/38.2-4226\/","token":"38.2\/42\/1\/38.2-4226","metadata":false},{"id":78423,"structure_id":12968,"section_number":"38.2-4227","catch_line":"Misleading applications or contracts","url":"\/38.2-4227\/","token":"38.2\/42\/1\/38.2-4227","metadata":false},{"id":68671,"structure_id":12968,"section_number":"38.2-4228","catch_line":"Controversies involving subscription contracts","url":"\/38.2-4228\/","token":"38.2\/42\/1\/38.2-4228","metadata":false},{"id":60792,"structure_id":12968,"section_number":"38.2-4229","catch_line":"Reinsurance","url":"\/38.2-4229\/","token":"38.2\/42\/1\/38.2-4229","metadata":false},{"id":86012,"structure_id":12968,"section_number":"38.2-4229.1","catch_line":"Conversion to domestic mutual insurer","url":"\/38.2-4229.1\/","token":"38.2\/42\/1\/38.2-4229.1","metadata":false},{"id":82144,"structure_id":12968,"section_number":"38.2-4229.2","catch_line":"Hearings and investigations on effect of other state's law","url":"\/38.2-4229.2\/","token":"38.2\/42\/1\/38.2-4229.2","metadata":false}],"previous_section":{"id":65554,"structure_id":12968,"section_number":"38.2-4211","catch_line":"Change of participants","url":"\/38.2-4211\/","token":"38.2\/42\/1\/38.2-4211","metadata":false},"next_section":{"id":57906,"structure_id":12968,"section_number":"38.2-4213","catch_line":"Liability of participating providers upon merger of nonstock corporation","url":"\/38.2-4213\/","token":"38.2\/42\/1\/38.2-4213","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-4212\/","history_text":"<p>The record of this law\u2019s original creation isn\u2019t available online. It has been modified 7 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1972, chapter 429; in 1974, chapter 54; in 1979, chapter 721; in 1980, chapter 682; in 1982, chapter 129; in 1985, chapter 233; in 1986, chapter 562.<\/p>","references":false,"refers_to":[{"id":83970,"section_number":"13.1-853","catch_line":"Requirement for and duties of board of directors","order_by":null,"url":"\/13.1-853\/"},{"id":68503,"section_number":"13.1-854","catch_line":"Qualification of directors","order_by":null,"url":"\/13.1-854\/"},{"id":56717,"section_number":"13.1-855","catch_line":"Number and election of directors","order_by":null,"url":"\/13.1-855\/"},{"id":71531,"section_number":"38.2-4202","catch_line":"Hospital services plans","order_by":null,"url":"\/38.2-4202\/"},{"id":80676,"section_number":"38.2-4203","catch_line":"Medical or surgical services plans","order_by":null,"url":"\/38.2-4203\/"},{"id":68874,"section_number":"38.2-4204","catch_line":"Merger of nonstock corporations","order_by":null,"url":"\/38.2-4204\/"},{"id":61631,"section_number":"38.2-4208","catch_line":"Nonstock corporation not required to act as agent","order_by":null,"url":"\/38.2-4208\/"}],"permalink":{"id":216721,"object_type":"law","relational_id":80058,"identifier":"38.2-4212","token":"38.2\/42\/1\/38.2-4212","url":"\/38.2-4212\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-4212\/","token":"38.2\/42\/1\/38.2-4212","dublin_core":{"Title":"Board of directors of nonstock corporation operating plan","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-4212","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t<section id=\"A\"><p><span class=\"prefix-number\">A.<\/span> Notwithstanding the provisions of \u00a7\u00a7&nbsp;<a class=\"law\" title=\"Requirement for and duties of board of directors\" href=\"\/13.1-853\/\">13.1-853<\/a>, <a class=\"law\" title=\"Qualification of directors\" href=\"\/13.1-854\/\">13.1-854<\/a> and <a class=\"law\" title=\"Number and election of directors\" href=\"\/13.1-855\/\">13.1-855<\/a>, a <span class=\"dictionary\">nonstock corporation<\/span> operating a <span class=\"dictionary\">plan<\/span> pursuant to \u00a7\u00a7&nbsp;<a class=\"law\" title=\"Hospital services plans\" href=\"\/38.2-4202\/\">38.2-4202<\/a>, <a class=\"law\" title=\"Medical or surgical services plans\" href=\"\/38.2-4203\/\">38.2-4203<\/a>, <a class=\"law\" title=\"Merger of nonstock corporations\" href=\"\/38.2-4204\/\">38.2-4204<\/a>, or \u00a7&nbsp;<a class=\"law\" title=\"Nonstock corporation not required to act as agent\" href=\"\/38.2-4208\/\">38.2-4208<\/a> shall be subject to the following: <a id=\"paragraph-286692\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/38.2-4212\/#A\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"A1\" class=\"indent-1\"><p><span class=\"prefix-number\">1.<\/span> The board of directors of the <span class=\"dictionary\">nonstock corporation<\/span> shall consist of no more than fifteen members. However, if two or more <span class=\"dictionary\">nonstock corporations<\/span> merge, the board of directors of the new or surviving <span class=\"dictionary\">nonstock corporation<\/span> may consist of no more than twenty members. Further, the board of directors may be increased to a size not exceeding the aggregate number of directors on the merging <span class=\"dictionary\">nonstock corporations<\/span>&#8217; boards for the balance of the year in which merger occurs and for the following five years. <a id=\"paragraph-286693\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/38.2-4212\/#A1\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"A2\" class=\"indent-1\"><p><span class=\"prefix-number\">2.<\/span> Except as permitted by subsection B of this section, a majority of the members of the board of directors of the <span class=\"dictionary\">nonstock corporation<\/span> shall be <span class=\"dictionary\">persons<\/span> who are covered by <span class=\"dictionary\">subscription contracts<\/span> issued by the <span class=\"dictionary\">nonstock corporation<\/span> and who are not providers of health care services, or employees or salaried officers of the <span class=\"dictionary\">nonstock corporation<\/span>. <a id=\"paragraph-286694\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/38.2-4212\/#A2\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"B\"><p><span class=\"prefix-number\">B.<\/span> Notwithstanding the provisions of &#xA7;&#xA7; <a class=\"law\" title=\"Requirement for and duties of board of directors\" href=\"\/13.1-853\/\">13.1-853<\/a>, <a class=\"law\" title=\"Qualification of directors\" href=\"\/13.1-854\/\">13.1-854<\/a> and <a class=\"law\" title=\"Number and election of directors\" href=\"\/13.1-855\/\">13.1-855<\/a>, any <span class=\"dictionary\">nonstock corporation<\/span> operating a <span class=\"dictionary\">plan<\/span> pursuant to &#xA7; <a class=\"law\" title=\"Medical or surgical services plans\" href=\"\/38.2-4203\/\">38.2-4203<\/a> may have a board of directors consisting of a majority of providers of health care services. <a id=\"paragraph-286695\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/38.2-4212\/#B\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"C\"><p><span class=\"prefix-number\">C.<\/span> As used in this section, &#8220;providers of health care services&#8221; shall include, but not be limited to, physicians, pharmacists, nurses, physical therapists, hospital administrators, employees or majority or controlling stockholders of hospitals, and other <span class=\"dictionary\">persons<\/span> furnishing health-related services. <a id=\"paragraph-286696\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/38.2-4212\/#C\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"D\"><p><span class=\"prefix-number\">D.<\/span> This section shall not apply to any foreign <span class=\"dictionary\">nonstock corporation<\/span> licensed in this Commonwealth on or before July 1, 1980. <a id=\"paragraph-286697\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/38.2-4212\/#D\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>","plain_text":"                                 CODE OF VIRGINIA\n\nBOARD OF DIRECTORS OF NONSTOCK CORPORATION OPERATING PLAN (\u00a7 38.2-4212)\n\nA. Notwithstanding the provisions of \u00a7\u00a7 13.1-853, 13.1-854 and 13.1-855, a\nnonstock corporation operating a plan pursuant to \u00a7\u00a7 38.2-4202, 38.2-4203,\n38.2-4204, or \u00a7 38.2-4208 shall be subject to the following:\n\n   1. The board of directors of the nonstock corporation shall consist of no more\n   than fifteen members. However, if two or more nonstock corporations merge, the\n   board of directors of the new or surviving nonstock corporation may consist of\n   no more than twenty members. Further, the board of directors may be increased\n   to a size not exceeding the aggregate number of directors on the merging\n   nonstock corporations&#8217; boards for the balance of the year in which\n   merger occurs and for the following five years.\n\n   2. Except as permitted by subsection B of this section, a majority of the\n   members of the board of directors of the nonstock corporation shall be persons\n   who are covered by subscription contracts issued by the nonstock corporation\n   and who are not providers of health care services, or employees or salaried\n   officers of the nonstock corporation.\n\nB. Notwithstanding the provisions of &#xA7;&#xA7; 13.1-853, 13.1-854 and\n13.1-855, any nonstock corporation operating a plan pursuant to &#xA7; 38.2-4203\nmay have a board of directors consisting of a majority of providers of health\ncare services.\n\nC. As used in this section, &#8220;providers of health care services&#8221;\nshall include, but not be limited to, physicians, pharmacists, nurses, physical\ntherapists, hospital administrators, employees or majority or controlling\nstockholders of hospitals, and other persons furnishing health-related services.\n\nD. This section shall not apply to any foreign nonstock corporation licensed in\nthis Commonwealth on or before July 1, 1980.\n\nHISTORY: Code 1950, \u00a7\u00a7 32-195.5:1, 32-195.5:2; 1972, c. 429, \u00a7\u00a7 38.1-816,\n38.1-817; 1974, c. 54; 1979, c. 721; 1980, c. 682; 1982, c. 129; 1985, c. 233;\n1986, c. 562.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}