Rhode Island General Laws 27-74-6. Surety bond or deposit requirements
(a) Each registered discount medical plan organization shall maintain in force a surety bond in its own name in an amount not less than fifty thousand dollars ($50,000) to be used in the discretion of the commissioner to protect the financial interest of members, including, but not limited to, making refunds of fees and costs to consumers if the registered discount medical plan organization‘s registration is revoked. The bond shall be issued by an insurance company licensed to do business in this state.
Terms Used In Rhode Island General Laws 27-74-6
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Commissioner: means the health insurance commissioner. See Rhode Island General Laws 27-74-3
- Discount medical plan: means a business arrangement or contract in which a person, in exchange for fees, dues, charges, or other consideration, offers access for its members to providers of medical or ancillary services and the right to receive discounts on medical or ancillary services provided under the discount medical plan from those providers. See Rhode Island General Laws 27-74-3
- Discount medical plan organization: means an entity that, in exchange for fees, dues, charges, or other consideration, provides access for discount medical plan members to providers of medical or ancillary services and the right to receive medical or ancillary services from those providers at a discount. See Rhode Island General Laws 27-74-3
- Trustee: A person or institution holding and administering property in trust.
(b) In lieu of the bond specified in this section, a registered discount medical plan organization may deposit and maintain deposited with the commissioner, or at the discretion of the commissioner, with any organization or trustee acceptable to the commissioner through which a custodial or controlled account is utilized, cash, securities, or any combination of these or other measures that are acceptable to the commissioner with at all times have a market value of not less than fifty thousand dollars ($50,000).
(c) All income from a deposit made under this section shall be an asset of the discount medical plan organization.
(d) Except for the commissioner, the assets or securities held in this state as a deposit under this section shall not be subject to levy by a judgment creditor or other claimant of the discount medical plan organization.
History of Section.
P.L. 2010, ch. 156, § 1; P.L. 2010, ch. 158, § 1.