GROUP HEALTH INS. OF N.J. v. HOWELL


40 N.J. 436 (1963)

193 A.2d 103

GROUP HEALTH INSURANCE OF NEW JERSEY, A NEW JERSEY CORPORATION, APPELLANT, v. CHARLES R. HOWELL, COMMISSIONER, DEPARTMENT OF BANKING AND INSURANCE, STATE OF NEW JERSEY, AND ARTHUR J. SILLS, ATTORNEY GENERAL OF THE STATE OF NEW JERSEY, RESPONDENTS, AND MEDICAL-SURGICAL PLAN OF NEW JERSEY (NEW JERSEY BLUE SHIELD PLAN), A NEW JERSEY CORPORATION, AND THE MEDICAL SOCIETY OF NEW JERSEY, A NEW JERSEY CORPORATION, ADDITIONAL RESPONDENTS.

The Supreme Court of New Jersey.

Decided July 1, 1963.


Attorney(s) appearing for the Case

Mr. Irving Abramson, of the New York Bar, argued the cause for the appellant, Group Health Insurance of New Jersey (Messrs. Kapelsohn, Lerner, Leuchter & Reitman, attorneys; Mr. Donald Grody, of the New York Bar, on the brief).

Mr. Steven S. Radin, Deputy Attorney General, argued the cause for the respondents, Charles R. Howell, Commissioner, Department of Banking and Insurance, and Arthur J. Sills, Attorney General of the State of New Jersey (Mr. Arthur J. Sills, Attorney General of New Jersey, attorney; Mr. Irwin R. Rein, on the brief).

Mr. William R. Vanderbilt argued the cause for the additional respondent, Medical-Surgical Plan of New Jersey (New Jersey Blue Shield Plan) (Messrs. Toner, Crowley, Woelper & Vanderbilt, attorneys).

Mr. Robert M. Backes argued the cause for the additional respondent, The Medical Society of New Jersey (Messrs. Backes & Backes, attorneys).

Mr. Leonard Rosenstein filed a brief amicus curiae on behalf of Group Health Association of America, Inc. (Messrs. Hansen, Hazen & Lynch, of the Minnesota Bar, of counsel; Mr. Horace R. Hansen, of the Minnesota Bar, on the brief).


The opinion of the court was delivered by PROCTOR, J.

This appeal involves the constitutionality of N.J.S.A. 17:48A-2 and N.J.S.A. 17:48A-3 of the Medical Service Corporations Law (L. 1940, c. 74, as amended, N.J.S.A. 17:48A-1 et seq.).

The appellant, Group Health Insurance of New Jersey (GHI), a New Jersey corporation, applied to the respondent Commissioner of Banking and Insurance (Commissioner) for a certificate...

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