(a)  Any rehabilitation, liquidations, administrative supervision, or conservation of a nonprofit dental service corporation organized under this chapter shall be conducted under the supervision of the director of business regulation pursuant to chapters 14.1, 14.2, and 14.3 of this title. The director of business regulation may apply for an order from the superior court directing the director of business regulation to rehabilitate, liquidate, or conserve a nonprofit dental service corporation upon any one or more of the following grounds:

(1)  That the nonprofit dental service corporation is insolvent; for the purposes of this section, the term “insolvent” means the inability of the nonprofit dental service corporation to meet its debts and financial obligations as they become due;

(2)  That the nonprofit dental service corporation fails or refuses to comply with a lawful order of the director of business regulation reasonably designed to correct unsound business policies or practices that, if uncorrected, could reasonably lead to insolvency as defined in subsection (a)(1); or

(3)  That the nonprofit dental service corporation’s financial condition is such as to render its further transaction of business hazardous to the public or its subscribers or members.

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Terms Used In Rhode Island General Laws 27-20.1-11

  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Dental service: means the professional services rendered by persons duly licensed under the laws of this state to practice dentistry, and prosthetic dentures, bridges, appliances, or other structures to be used and worn as substitutes for natural teeth, prosthetic appliances, orthodontic appliances, precious metal, and ceramic restorations, necessary in connection with the services and supplied by licensed persons, and drugs, medicines, supplies, and nursing care necessary in connection with the services, or expense indemnity for the services, prosthetic dentures, bridges, appliances, or other structures to be used and worn as substitutes for natural teeth, prosthetic appliances, orthodontic appliances, precious metal, and ceramic restorations, drugs, medicines, supplies, and care, as may be specified in any nonprofit dental service plan. See Rhode Island General Laws 27-20.1-1
  • Nonprofit dental service corporation: means any corporation organized pursuant to this chapter for the purpose of establishing, maintaining, and operating a nonprofit dental service plan. See Rhode Island General Laws 27-20.1-1
  • Subscribers: means those persons or groups of persons who contract with a nonprofit dental service corporation for dental service pursuant to a nonprofit dental service plan. See Rhode Island General Laws 27-20.1-1

(b)  A claim by a healthcare provider shall not be asserted against any subscriber or member of the nonprofit dental service corporation in the event of the rehabilitation, liquidation, conservation, or administrative supervision of the nonprofit dental service corporation.

History of Section.
P.L. 1993, ch. 180, § 19.