National Health Insurance Act

National health insurance societies (hereinafter referred to as a "Society") shall be organized by incorporating those who are engaged in the same kind of business or work and are domiciled in the same district of a Society as its members.

The district of a Society set forth in the preceding paragraph shall consist of the area covered by one, or two or more Municipalities; provided, however, that this shall not apply if any special reason exists for not basing said district on such areas.

Notwithstanding the provisions of paragraph (1), a person shall not be eligible as a Society member if said person falls under any of the items (excluding items (viii) and (x)) of Article 6 or is an insured person under any national health insurance program provided by another Society; provided, however, that this shall not apply if said person's household includes any person who does not fall under any of the items (excluding item (x)) of the same Article and who is not an insured person under any national health insurance program provided by another Society.

Notwithstanding the provisions of paragraph (1), a person shall be eligible as a Society member if said person is employed by said Society, does not fall under any of the items (excluding items (viii) and (x)) of Article 6, and is not an insured person under any national health insurance program provided by another Society.

A Society shall be a corporation.

A Society shall use the characters "国民健康保険組合" (pronounced "kokumin kenko hoken kumiai" (literally meaning "national health insurance society")) in its name.

No person other than a Society may use the name "kokumin kenko hoken kumiai" or any name similar thereto.

The domicile of a Society shall be at the location of its principal office.

The establishment of a Society must be subject to the authorization of the prefectural governor governing the area which is the location of its principal office.

An application for the authorization set forth in the preceding paragraph shall be filed by preparing the Society's constitution, which shall be prepared by at least fifteen founders, and by obtaining consent thereto from at least three hundred persons who will become members of said Society.

In the case where an application for the authorization set forth in paragraph (1) is filed, the prefectural governor shall, in advance, hear the opinions of the persons specified in each of the following items for the categories of Societies set forth in those items, and shall not give the authorization set forth in the same paragraph unless said prefectural governor finds that the establishment of the Society pertaining to the application for authorization will not hinder the administration of the national health insurance services of the prefectures whose areas include the district of said Society and of the Municipalities within those prefectures.

a Society whose district does not extend beyond the area of one prefecture: the heads of the Municipalities (including the heads of special wards; the same applies hereinafter) whose area includes the district of said Society;

a Society whose district extends over the areas of two or more prefectures: the heads of the Municipalities whose area includes the district of said Society (limited to Municipalities within the prefecture governed by the prefectural governor who received the application for the authorization set forth in paragraph (1)) and the prefectural governors of the prefectures whose areas include the district of said Society (excluding the prefectural governor who received the application for said authorization; referred to as an "other prefectural governor" in the following paragraph).

In stating an opinion pursuant to the provisions of the preceding paragraph, the other prefectural governor must in advance hear the opinions of the heads of the Municipalities within the prefecture governed by that other prefectural governor (limited to Municipalities whose area includes the district of the Society pertaining to the application for the authorization set forth in paragraph (1)).

A Society shall be incorporated at the time of authorization of its establishment.

The constitution of a Society must contain the particulars listed in the following items:

name;

location of the office;

district of the Society and the scope of its membership;

particulars pertaining to the joining and withdrawal of Society members;

particulars pertaining to the acquisition and loss of eligibility as an insured person;

particulars pertaining to officers;

particulars pertaining to Society meetings;

particulars pertaining to insurance premiums;

particulars pertaining to reserves and other particulars related to property management;

method for giving public notice;

in addition to the particulars listed in the preceding items, particulars specified by Ordinance of the Ministry of Health, Labour and Welfare.

A Society member and all persons belonging to said member's household shall be insured persons under the national health insurance program provided by said Society; provided, however, that this shall not apply to any person who falls under any of the items (excluding item (x)) of Article 6 or is an insured person under any national health insurance program provided by another Society.

Notwithstanding the provisions of the preceding paragraph, a Society may, pursuant to the provisions of its constitution, choose not to grant status as an insured person collectively to all persons belonging to the household of a member of such Society.

An insured person under the national health insurance program provided by a Society shall become eligible as such on the day on which said person becomes a member of said Society or on the first day on which said person belongs to such member's household or on which said person no longer falls under any of the items (excluding item (x)) of Article 6 or on the day on which said person ceases to be an insured person under the National Health Insurance provided by another Society.

The provisions of Article 9 (excluding paragraph (6)) apply mutatis mutandis to notification concerning insured persons under the national health insurance program provided by a Society and confirmation concerning the eligibility of insured persons. In this case, the term "Householder" in paragraphs (1), (3) and (5) of that Article is deemed to be replaced with "Society member"; the term "the Municipality" in paragraphs (1) and (5) of that Article with "the Society"; the phrase "as a Householder" in paragraph (2) of that Article with "as a Society member"; the phrase "Householder may" in paragraphs (2) and (4) of that Article with "Society member may"; the phrase "the Municipality in which said Householder has a domicile" in paragraphs (2) and (4) of that Article with "the Society"; the phrase "the Municipality is to" in paragraphs (2) and (4) of that Article with "the Society is to"; and the phrase "the Householder who requested" in paragraphs (2) and (4) of that Article with "the Society member who requested".

Each Society shall have directors and auditors as its officers.

The fixed number of directors shall be five or more and the fixed number of auditors shall be two or more, and each of these fixed numbers shall be specified by the Society's constitution.

All directors and auditors shall be appointed at a Society meeting from among Society members pursuant to the provisions of the Society's constitution; provided, however, that this shall not preclude directors and auditors from being appointed at a Society meeting from among persons other than Society members if any special circumstances exist.

The respective terms of office of directors and auditors shall be specified by the Society's constitution within a period not exceeding three years.

A director shall execute the operations of the Society and shall represent the Society pursuant to the provisions of its constitution.

Unless otherwise specified by the constitution, a Society's operations shall be determined by the majority of all directors.

An auditor shall audit the performance of business and the status of the property of the Society.

Restrictions on directors' authority of representation may not be asserted against a third party without knowledge of such restrictions.

A director may delegate their authority on a specific action to another person unless such delegation is prohibited by the Society's constitution or a resolution of a Society meeting.

In cases where there is any vacancy in the position of director and when damage is likely to occur due to a delay in business, the prefectural governor must appoint a provisional director at the request of any interested person or by said person's authority.

A director shall have no authority of representation as to any matter involving a conflict of interest between the Society and such director. In the event of such a conflict of interest, the prefectural governor must appoint a special agent at the request of any interested person or by said person's authority.

When a valid Society meeting fails to take place or when a Society meeting fails to make a resolution on any matter on which a resolution needs to be made, the directors may, under the direction of the prefectural governor, handle such matter on which a resolution needs to be made.

In cases where a matter on which a resolution needs to be made at a Society meeting must be implemented temporarily and urgently, when a valid Society meeting fails to take place or when there is no time to convene a Society meeting, then the directors may handle such matter on which a resolution needs to be made.

Any disposition made pursuant to the provisions of the two preceding paragraphs must be reported by the directors at the first Society meeting convened thereafter.

A Society shall have Society meetings.

A Society meeting shall be composed of Society council members, whose fixed number shall be specified by its constitution within a range not less than one-twentieth of the total number of Society members; provided, however, that in cases where a Society has more than six hundred members in total, having at least thirty Society council members will suffice.

Society council members shall be elected by Society members from among themselves pursuant to the provisions of the Society's constitution.

The term of office of Society council members shall be specified by the Society's constitution within a period not exceeding three years.