RELATING TO
STATUTES AND STATUTORY CONSTRUCTION
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Introduced By: Representatives Carter, Fox, and San Bento |
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Date Introduced: February 13, 2002 |
It is enacted
by the General Assembly as follows:
SECTION 1. Section
5-40.1-13 of the General Laws in Chapter 5-40.1 entitled "Occupational
Therapy" is hereby amended to read as follows:
5-40.1-13. Fees. -- When an application is submitted to the
division of professional regulation for a license to practice occupational
therapy in Rhode Island, the applicant pays shall pay a non-refundable
fee of sixty-two dollars and fifty cents ($62.50) to the general treasurer. A
licensee shall submit a biennial renewal fee of sixty-two dollars and fifty
cents ($62.50) is submitted with a renewal application on or before the first
thirty-first (31st) day of March of each even year pursuant to the requirements
of § 5-40.1-12(1)(a)(3), and any person who allows his or her license to
lapse by failing to renew it in the manner prescribed pays shall pay an
additional fee of twenty-five dollars ($25.00) as referred to in § 5-40.1-12(1)
SECTION
2. Section 23-17-44 of the General Laws in Chapter 23-17 entitled
"Licensing of Health Care Facilities" is hereby amended to read as
follows:
23-17-44. Moratorium on new initial nursing facility licensed beds and on increases to the licensed capacity of existing nursing facility licenses. -- (a) The licensing agency shall issue no new initial licenses for nursing facilities prior to July 1, 2004; provided, however, that:
(1) Any person holding a previously issued and valid certificate of need as of August 21, 1996 shall be permitted to effect a prior certificate from the licensing agency consistent with any other statutory and regulatory provisions which may further apply;
(2) Any person holding a nursing facility license may undertake activities to construct and operate a replacement nursing facility with the same or lower bed capacity as is presently licensed provided that the replacement facility may only be licensed upon the otherwise unconditional cessation of operation of the previously licensed nursing facility;
(3) Any certificate of need application under active review before the state agency as of
January 10, 1996, which application seeks approval of a proposal to establish a new nursing facility or seeks to increase the licensed bed capacity of an existing nursing facility shall continue to be reviewed under all the statutory and regulatory requirements in effect at the time the application was accepted for review by the state agency; and
(4) On July 1, 1999, if the statewide occupancy rate of licensed nursing facility beds exceeds ninety-two percent (92%) for the preceding calendar year, as determined by the department of human services, an assisted living residence licensed pursuant to chapter 17.4 of this title may propose to seek nursing facility licensure by conversion of assisted living residence rooms within its existing physical plant; provided however, that:
(i) The number of nursing facility beds to be licensed does not exceed the lesser of twenty (20) beds or ten percent (10%) of the licensed bed capacity of the assisted living residence;
(ii) The capital expenditures associated with the implementation of the nursing facility beds does not exceed five hundred thousand dollars ($500,000);
(iii) The nursing facility shall be limited in taking residents to those persons who are transferring from residency at the assisted living residence;
(iv) The assisted living residence must participate in the Medicaid program;
(v) The application must be submitted to the health services council on or before October 1, 1999;
(vi) The facility must comply with all requirements of the Health Care Certificate of Need Act, chapter 15 of title 23.
(b) Prior to July 1, 2004, the licensing agency shall not
increase the licensed bed capacity of any existing licensed nursing facility,
including any nursing facility approved for change in ownership pursuant to §
23-17-14 §§23-17-14.3 and 23-17-14.4, except for the greater of ten
(10) beds or ten percent (10%) of the facility's licensed capacity. Any person
holding a previously issued and valid certificate of need as of the date of
passage of this section or who shall subsequently be granted a certificate of
need pursuant to subsection (a) shall be permitted to effect a prior
certificate from the licensing agency consistent with any other statutory and
regulatory provisions which may further apply.
SECTION 3. Sections 25-2-14, 25-2-18.1, 25-2-25, and 25-2-29 of the General Laws in Chapter 25-2 entitled "Days of Special Observance" are hereby amended to read as follows:
25-2-14. White Ccane Ssafety Dday
- Proclamation. -- Each year the
governor shall take suitable public notice of October 15 as "Wwhite
Ccane Ssafety Dday." The
governor shall issue a proclamation in which he or she:
(1) Comments upon the
significance of the white cane;
(2) Calls upon the
citizens of the state to observe the provisions of the white cane law and to
take precautions necessary to the safety of the people who are disabled;
(3) Reminds the
citizens of the state of the policies with respect to people who are disabled herein
as declared in § 25-2-13 and urges the citizens to cooperate in
giving effect to them; and
(4) Emphasizes the
need of the citizens to be aware of the presence of people who are disabled in
the community and to keep safe and functional for people who are disabled the
streets, highways, sidewalks, walkways, public buildings, public facilities,
other public places, places of public accommodation, amusement, and resort, and
other places to which the public is invited, and to offer assistance to people
who are disabled upon appropriate occasions.
25-2-18.1. Martin
Luther King, Jr. State Holiday Commission. [Effective until January 7, 2003.]
-- (a) There is hereby created a permanent
commission to be known as the Martin Luther King, Jr. State Holiday Commission
to consist of thirteen (13) members, three (3) of whom shall be from the house
of representatives, not more than two (2) from the same political party, to be
appointed by the speaker; three (3) of whom shall be from the senate, not more
than two (2) from the same political party to be appointed by the senate
majority leader; three (3) of whom shall be representatives of the general
public, to be appointed by the speaker; two (2) of whom shall be
representatives of the general public to be appointed by the senate majority
leader; one of whom shall be a representative of the governor's office, to be
appointed by the governor; and one of whom shall be the lieutenant governor,
all of the foregoing to be known as commission members. The commission shall
appoint not more than sixteen (16) representatives from organizations and
groups generally identified with and thought to epitomize the ideals of Dr.
Martin Luther King, Jr., all of whom shall be known as non-voting affiliate
members, to serve for two (2) year terms.
(b) The purpose of the commission shall be to
plan, supervise, and administer, in conjunction with the federal Martin
Luther King Day Commission and the Martin Luther King Center for Non-Violent
Social Change, an appropriate celebration to commemorate the birthday of Dr.
Martin Luther King, Jr., and the annual observance of Dr. Martin Luther King
Day, which will be observed on the third Monday in January each year. The
commission shall not limit its activities to the annual celebration, but shall
endeavor to promote educational efforts throughout the year, as well as to
promote seminar events during the annual celebration that will be of
informative value to all segments of the Rhode Island community.
(c) Forthwith upon the passage of this
section, The members of the commission shall meet at the call of the
speaker and shall, in February of each odd-numbered year, elect from among
themselves a chairperson, who shall be a legislator, and a vice-chairperson,
who shall not be a government official or employee. Vacancies in the commission
shall be filled in like manner as the original appointment.
(d) The commission is empowered to appoint
committees to study specialized areas of concern and to report their findings
and recommendations to the commission; provided, however, that one of these
committees shall be an education committee.
(e) The commission is empowered to establish a
Martin Luther King Scholarship Fund and to award scholarships therefrom from
the fund. Decisions concerning scholarship awards shall be made by the
education committee of the commission in conjunction with the higher education
assistance authority.
(f) The commission is empowered to apply for and
receive grants, appropriations, or gifts from any federal, state, or local
agency, from any public or private foundation, and from any person, firm, or
corporation in order to carry out the purposes of this chapter. The allocation
of any funds received shall be decided by a majority vote of voting members in
attendance at a meeting duly convened for the conduct of business by the
commission.
Seven (7) members of the commission shall
constitute a quorum.
(g) The commission shall meet at least four (4)
times per year.
(h) On or before October 1, 1996, The
commission shall adopt policies concerning the responsibilities of its voting
members and non-voting affiliate members, including attendance at commission
meetings.
(i) All departments and agencies of the state
shall furnish advice and information, documentary and otherwise, to the
commission and its agents as may be necessary or desirable to facilitate the
purposes of this chapter.
(j) The speaker is hereby authorized and
directed to provide suitable quarters for the commission.
(k) The commission shall file a report with the
general assembly outlining its plans for the celebration on or before December
15th each year prior to the celebration.
25-2-18.1. Martin
Luther King, Jr. State Holiday Commission. [Effective January 7, 2003.] -- (a)
There is hereby created a
permanent commission to be known as the Martin Luther King, Jr. State Holiday
Commission to consist of thirteen (13) members, three (3) of whom shall be from
the house of representatives, not more than two (2) from the same political
party, to be appointed by the speaker; three (3) of whom shall be from the senate,
not more than two (2) from the same political party to be appointed by the
president of the senate; three (3) of whom shall be representatives of the
general public, to be appointed by the speaker; two (2) of whom shall be
representatives of the general public to be appointed by the president of the
senate; one of whom shall be a representative of the governor's office, to be
appointed by the governor; and one of whom shall be the lieutenant governor,
all of the foregoing to be known as commission members. The commission shall
appoint not more than sixteen (16) representatives from organizations and
groups generally identified with and thought to epitomize the ideals of Dr.
Martin Luther King, Jr., all of whom shall be known as non-voting affiliate members,
to serve for two (2) year terms.
(b) The purpose of the commission shall be to
plan, supervise, and administer, in conjunction with the federal Martin
Luther King Day Commission and the Martin Luther King Center for Non-Violent
Social Change, an appropriate celebration to commemorate the birthday of Dr.
Martin Luther King, Jr., and the annual observance of Dr. Martin Luther King
Day, which will be observed on the third Monday in January each year. The
commission shall not limit its activities to the annual celebration, but shall
endeavor to promote educational efforts throughout the year, as well as to
promote seminar events during the annual celebration that will be of
informative value to all segments of the Rhode Island community.
(c) Forthwith upon the passage of this
section, The members of the commission shall meet at the call of the
speaker and shall, in February of each odd-numbered year, elect from among
themselves a chairperson, who shall be a legislator, and a vice-chairperson,
who shall not be a government official or employee. Vacancies in the commission
shall be filled in like manner as the original appointment.
(d) The commission is empowered to appoint
committees to study specialized areas of concern and to report their findings
and recommendations to the commission; provided, however, that one of these
committees shall be an education committee.
(e) The commission is empowered to establish a
Martin Luther King Scholarship Fund and to award scholarships therefrom from
the fund. Decisions concerning scholarship awards shall be made by the
education committee of the commission in conjunction with the higher education
assistance authority.
(f) The commission is empowered to apply for and
receive grants, appropriations, or gifts from any federal, state, or local
agency, from any public or private foundation, and from any person, firm, or
corporation in order to carry out the purposes of this chapter. The allocation
of any funds received shall be decided by a majority vote of voting members in
attendance at a meeting duly convened for the conduct of business by the
commission.
Seven (7) members of the commission shall
constitute a quorum.
(g) The commission shall meet at least four (4)
times per year.
(h) On or before October 1, 1996, The
commission shall adopt policies concerning the responsibilities of its voting
members and non-voting affiliate members, including attendance at commission
meetings.
(i) All departments and agencies of the state
shall furnish advice and information, documentary and otherwise, to the
commission and its agents as may be necessary or desirable to facilitate the
purposes of this chapter.
(j) The speaker is hereby authorized and
directed to provide suitable quarters for the commission.
(k) The commission shall file a report with the
general assembly outlining its plans for the celebration on or before December
15th each year prior to the celebration.
25-2-25. National
Women's History Week. -- The
calendar week containing March eighth, "International Women's dDay," in each year is hereby designated as
"National Women's History Week." The governor shall annually
issue an annual proclamation inviting and urging the people of the state
to observe the week in schools and other suitable places with appropriate exercises
and study with an emphasis on the historical accomplishments of Rhode Island
women. The department of elementary and secondary education, the
Rhode Island office of civil rights, and the Rhode Island commission on
women shall make appropriate information regarding the observance available to
the people of the state and to schools within the limits of their budgets.
25-2-29. Saint Jean-Baptiste Day. -- The twenty-fourth day of June shall annually be set aside as a day to be
known as "Saint Jean-Baptiste Day" and the governor shall annually
issue an annual proclamation inviting and urging the people of the state
to observe this day in suitable places with appropriate ceremonies. Saint
Jean-Baptiste Day shall commemorate the feast of Saint John the
Baptist Jean-Baptiste as an important observance and show of
appreciation for the significant cultural, economic, and civic contributions
made by Franco-Americans which that have served to enrich the
culture and lifestyle of this state.
SECTION 4. Sections 25-3-1 and 25-3-3 of the
General Laws in Chapter 25-3 entitled "Work on Holidays and Sundays"
are hereby amended to read as follows:
25-3-1. Definitions. -- As used in this chapter:
(1)
"Director" means the director of the department of labor and
training;
(2) "Economic
necessity" means and refers to any case where the director determines
that:
(i) Both the
economics and technology of manufacture of the product or a component thereof
of the product requires continuous conversion or processing of raw
materials, intermediates, or components without interruption to avoid
disproportionate loss of production capacity;
(ii) The economics
and technology of data processing requires the continuous operation of data
processing equipment to avoid deterioration of equipment or a disproportionate
loss of computer capacity or where customer requirements are such that
data processing equipment must be available for input or output on a continuous
basis;
(iii) Because
prevailing industry practice in the manufacturing or processing of the product
or in the provision of banking or financial services is to operate facilities
within that industry seven (7) days per week, the failure to operate on one or
more Sundays or holidays will subject the employer to a competitive hardship
within the industry in which the employer competes;
(iv) Maintenance or
improvement of plant or equipment cannot practically or efficiently be
performed while production is in process;
(v) The scheduling of
production on Sundays or holidays is necessitated by interrupted or allocated
energy supplies, or shortages of raw materials or component parts;
(vi) An employer has
been deprived of its normal production schedule by fire, flood, power failure,
or other circumstances beyond its control; or
(vii) Circumstances,
temporary in nature, are such that undue economic hardship would result
from the inability to operate on one or more Sundays or holidays;
(3)
"Employee" means any individual employed by an employer, but shall
not include:
(i) Any individual
employed in agriculture or maritime trades, including commercial fishing or
boat repairs;
(ii) Any physician,
dentist, attorney at law, or accountant;
(iii) Any individual
engaged in the provision of health care or maintenance;
(iv) Any individual
employed in a restaurant, hotel, motel, summer camp, resort, or other
recreational facility (except health clubs);
(v) Any individual
employed in the business of offshore petroleum or gas exploration or
extraction, or in the business of servicing or supplying persons engaged in
exploration or extraction;
(vi) Supervisory
employees as defined in 29 U.S.C. § 213(a)(1) and regulations issued pursuant thereto
to that section;
(vii) Any individual employed
by an employer holding a license issued pursuant to chapter 23 of title 5; or
(viii) Any individual
employed as part of a telephonic delivery of customer service, sales
operations, and ancillary services related thereto to those services
and operations, except for specific employment positions in the
telecommunications industry which that are part of any
collective bargaining agreement or employment contract in effect on July 2,
1998.
(4)
"Employer" means any natural person, partnership, firm, corporation,
or other enterprise engaged in industry, transportation, communication, or any
other commercial occupation involving one or more employees; and
(5)
"Holidays" means Sunday, New Year's Day, Memorial Day, July 4th,
Victory Day, Labor Day, Columbus Day, Veterans' Day, Thanksgiving, and
Christmas; provided, however, that as it pertains to all offices of
state and municipal government, the term "holiday" includes in
addition to the foregoing holidays enumerated in this subdivision,
Dr. Martin Luther King, Jr.'s Birthday, as defined herein. in
§ 25-2-18.
25-3-3. Work on
Sundays or holidays. -- (a)
Work performed by employees on Sundays and holidays must be paid for at least
one and one-half (1 1/2) times the normal rate of pay for the
work performed; provided: (1) that it is not grounds for discharge or other
penalty upon any employee for refusing to work upon any Sunday or holiday
enumerated in this section chapter; (2) any manufacturer which
operates for seven (7) continuous days per week is exempt from the requirement
of subdivision (1).
(b) Any manufacturer
of wall-covering products which operates for seven (7) continuous days per
week, twenty-four (24) hours per day, and has complied with the provisions of
subsection (a) is exempt from the requirement that the work be voluntary on
Sundays as provided in subsection (a); provided, that the manufacturer
increases employment by at least ten percent (10%), within one year of its
conversion to continuous operation from non-continuous operation.
(c) Any
manufacturer that operates three (3) shifts, or begins its work week on
Sundays, may begin the shift or start the work week at 11:00 P.M. on Sunday and
not be required to pay its employees one and one-half (1 1/2) times the normal
rate of pay during the one hour period between 11:00 P.M. Sunday and 12
midnight.
SECTION 5. Sections
27-1-1, 27-1-29, 27-1-38 and 27-1-40 of the General Laws in chapter 27-1
entitled "Domestic Insurance Companies" are hereby amended to read as
follows:
27-1-1. Site of principal office and records. -- (a) Every insurance
company organized after May 3, 1956, under the laws of this state shall have
its principal office and maintain all of its records, or duplicates thereof
of those records, in this state; provided, however, that the
director of business regulation may, after a public hearing, allow any
insurance company, upon application, to locate its principal office and
maintain certain original records outside of this state if it is determined
that it is not inconsistent with the public interest of the people of the state
of Rhode Island. In determining what is not inconsistent with the public
interest of the people of the state of Rhode Island, the director shall make
findings of fact, reduced to writing and filed with the secretary of state,
which findings shall include, but are not be limited to the
following:
(1) (a) The number of full time employees currently located within the state, and
the number of full time employees anticipated to be located within the state if
the petition is granted; and
(2) (b) That no detriment nor prejudice will inure to any current or anticipated
future policyholders of the company by granting the application; and
(3) (c) That the granting of the application is not inimicable inimical
to the ability of policyholders to file claims with and against the company,
and, in furtherance of this finding, may require that the company maintain a
toll free number for registering claims, and may require a claims office to be
located within the state, staffed by a person authorized to issue payment on
behalf of the company on approved claims; and
(4) (d) That a review of the financial records of the company and the records
relied upon by the director in making the determination have satisfied the director
that the company is able to meet its obligations to current policyholders. In
the event that there is any risk associated with the granting the application
the director may deny the application or may, in furtherance thereof of
the application, may require the posting of bonds and/or securities
with the general treasurer, in an amount to be determined by the director,
sufficient to protect the interest of the policyholders within the state.
; and
(b) (e) The director is authorized to promulgate regulations as provided for by
the Administrative Procedures Act, chapter 35 of title 42, not
inconsistent with the foregoing this section, in furtherance of
the authority herein granted in this section.
27-1-29. Reports of directors, officers, and principal shareholders.
-- Every person who is directly or
indirectly the beneficial owner of more than ten percent (10%) of any class of
any equity security of a domestic stock insurance company, or who is a director
or an officer of a domestic stock insurance company, shall file in the office
of the commissioner on or before the first day of July, 1966, or within
ten (10) days after he or she becomes the beneficial owner, director, or
officer, a statement, in a form as the commissioner may prescribe, of the
amount of all equity securities of the company of which he or she is the
beneficial owner. Within ten (10) days after the close of each calendar month,
thereafter, if there has been a change in ownership during the month, he
or she shall file in the office of the commissioner a statement, in a form as
the commissioner may prescribe, indicating his or her ownership at the close of
the calendar month and any changes in his or her ownership as have occurred
during the calendar month.
27-1-38.
Acquisition of minority interests in subsidiary insurers. -- (a) Any parent corporation directly or
indirectly owning at least ninety-five percent (95%) of the aggregate issued
and outstanding shares of all classes of voting stock of an insurance company
created by special act of the general assembly may, pursuant to a plan for
acquisition of minority interests in the insurance company adopted pursuant to
this section, acquire all of the remaining issued and outstanding shares of
voting stock of the insurance company, by exchange of stock, other securities,
cash, other consideration, or any combination thereof of these.
(b) The board of
directors, trustees, or other governing body of the parent corporation may
adopt a plan for the acquisition of minority interests in a subsidiary insurer.
Every plan shall set forth:
(1) The name of the
company whose shares are to be acquired;
(2) The total number
of issued and outstanding shares of each class of voting stock of the company,
the number of its shares owned by the parent corporation and, if either of the
foregoing is subject to change prior to the effective date of acquisition, the
manner in which any change may occur;
(3) The terms and
conditions of the plan, including the manner and basis of exchanging the shares
to be acquired for shares or other securities of the parent corporation, for
cash, other consideration, or any combination of the foregoing, the proposed
effective date of acquisition, and a statement clearly describing the rights of
dissenting shareholders to demand appraisal;
(4) If the parent
corporation that has adopted the plan is neither a domestic corporation nor an
authorized insurer, its consent to the enforcement against it in this state of
the rights of shareholders pursuant to the plan, and a designation of the
insurance commissioner as the agent upon whom process may be served against the
parent corporation in the same manner as if the parent corporation were a
foreign insurance company licensed to do business in this state; and
(5) The other
provisions with respect to the plan that the board of directors, trustees or
other governing body deems necessary or desirable, or which the director of the
department of business regulation may prescribe.
(c) Upon adoption of
the plan, it shall be duly executed by the president and attested by the
secretary, or the executive officers corresponding thereto to
president and secretary, under the corporate seal of the parent corporation
which has adopted the plan. A certified copy of the plan, together with a
certificate of its adoption subscribed by the officers and affirmed by them as
true under the penalties of perjury and under the seal of the parent
corporation, shall be submitted to the director of business regulation for his
or her approval. The director of business regulation shall consider the plan
and, if satisfied that it complies with this section, is fair and equitable and
not inconsistent with law, the director of business regulation shall approve
the plan. The director of business regulation shall approve, modify, or
disapprove the plan within sixty (60) days of its submission to him or her. If
the director of business regulation modifies or disapproves the plan,
notification of his or her modification or disapproval, assigning the reasons therefor
for that action, shall be given in writing by him or her to the parent
corporation that submitted the plan. No plan shall take effect unless the
approval of the director of the department of business regulation has been
obtained.
(d) If the director
of business regulation approves the plan as submitted or modified, the parent
corporation which has adopted the plan shall deliver to each person who,
as of the date of delivery, is a holder of record of stock to be
acquired pursuant to the plan, a copy of the plan, or a summary of the
plan approved by the director of the department of business regulation in
person or by depositing a copy or a summary of the plan in the post office,
postage prepaid, addressed to the shareholder at the shareholder's address of
record. On or before the date of acquisition proposed in the plan, the parent
corporation which has adopted the plan shall file with the director of the
department of business regulation a certificate, executed by its president and
attested by its secretary, or the executive officers corresponding thereto
to president and secretary, and subscribed by the officers and affirmed
by them as true under the penalties of perjury and under the seal of the parent
corporation, attesting to compliance with this subsection.
(e) Upon compliance
with this section, ownership of the shares to be acquired pursuant to the plan
shall vest in the parent corporation which has adopted the plan on the date of
acquisition proposed in the plan whether or not the certificates for the shares
have been surrendered for exchange. The parent corporation shall be entitled to
have new certificates registered in its name. Shareholders whose shares have
been so acquired shall thereafter retain only the right either to receive the
consideration to be paid in exchange for their shares pursuant to the plan or
to demand appraisal pursuant to subsection (g).
(f) Neither the right
granted by this section nor the exercise of that right by a parent corporation shall
preclude the exercise by the parent corporation of any other rights it may have
under any other applicable law.
(g)(1) Any
shareholder of an insurance company whose shares are to be acquired by a parent
corporation pursuant to a plan for the acquisition of minority interests
adopted under this section shall have the right to dissent from the plan.
(2) (1) A shareholder may not dissent as to less than all of the shares
registered in the shareholder's name which are owned beneficially by the
shareholder. A nominee or fiduciary may not dissent on behalf of any beneficial
owner as to less than all of the shares of the owner registered in the name of
the nominee or fiduciary.
(3) (2) Any shareholder electing to exercise the right of dissent shall file with
the parent corporation a written demand for payment of the fair value of the
shareholder's shares within fifteen (15) days after the plan shall have been
mailed to the shareholder.
(4) (3) Any shareholder failing to make demand within the fifteen (15) day
period shall be bound by the terms of the plan. Any shareholder making a demand
shall be entitled only to payment as in this section provided and shall not be
entitled to vote or to exercise any other rights of a shareholder.
(5) (4) No demand may be withdrawn unless
the parent corporation consents. If, however, the demand shall be withdrawn
upon consent, or if the plan shall be abandoned, or if no demand or petition
for the determination of fair value by a court shall have been made or filed
within the time provided in this section, or if a court of competent
jurisdiction shall determine that the shareholder is not entitled to the relief
provided by this section, then the right of the shareholder to be paid the fair
value of his or her shares shall cease and his or her status as a shareholder
shall be restored, without prejudice to any corporate proceedings which may
have been taken during the interim.
(6) (5) Within ten (10) days after the effective date of the acquisition under
the plan, the parent corporation shall make a written offer to each shareholder
who has made demand to pay for the shares at a specified price deemed by the
corporation to be fair value thereof of the shares. The notice and
offer shall be accompanied by a balance sheet of the insurance company as of
the latest available date and not more than twelve (12) months prior to the
making of the offer, and a profit and loss statement of the insurance company
for the twelve (12) month period ended on the date of the balance sheet.
(7) (6) If within thirty (30) days after the effective date of the acquisition
under the plan the fair value of the shares is agreed upon between any
dissenting shareholder and the parent corporation, payment therefor for
the shares shall be made within ninety (90) days after the effective date
of the acquisition under the plan upon surrender of the certificate or
certificates representing the shares. Upon payment of the agreed value, the
dissenting shareholder shall cease to have any interest in the shares.
(8) (7) If, within the period of thirty (30) days, a dissenting
shareholder and the parent corporation do not so agree as provided in
subdivision (g)(7), then the parent corporation shall file a petition in
any court of competent jurisdiction in the county in this state where the
insurance company maintains its principal office praying that the fair value of
the shares be found and determined; provided, that the parent corporation shall
have received a written request for the filing from any dissenting shareholder
given within sixty (60) days after the effective date of the acquisition under
the plan, and the parent corporation shall file the petition within thirty (30)
days after receipt of the request. If no request is made, the parent
corporation may at its election file a petition at any time within sixty (60)
days after the effective date of the acquisition date of the plan. If the
parent corporation shall fail to institute the proceeding, any dissenting
shareholder may do so in the name of the parent corporation.
(9) (8) The subsidiary insurance company shall join as a party petitioner in the
proceeding, and in the event that the insurance company shall fail to do so,
the court upon the motion of any party shall join the insurance company as a
party petitioner.
(10) (9) All dissenting shareholders, wherever residing, shall be made parties to
the proceeding as an action against their shares quasi in rem. A copy of the
petition shall be served on each dissenting shareholder who is a resident of
this state and shall be served by registered or certified mail on each
dissenting shareholder who is a nonresident. Service on nonresidents shall also
be made by publication as provided by law. The jurisdiction of the court shall
be plenary and exclusive. All shareholders who are parties to the proceeding
shall be entitled to judgment against the parent corporation and the subsidiary
insurance company jointly and severally for the amount of the fair value of their
shares, and execution shall issue upon the motion of any party respondent
against either or both of the parent corporation and the subsidiary insurance
company and their respective assets, and any execution so issued against the
insurance company shall have priority over the claims of any other shareholder.
(11) (10) The court may, if it so elects, appoint one or more persons as
appraisers to receive evidence and recommend a decision on the question of fair
value. The appraisers shall have the power and authority specified in the order
of their appointment or an amendment of the order. The judgment shall be
payable only upon and concurrently with the surrender to the parent corporation
of the certificate or certificates representing the shares. Upon payment of the
judgment, the dissenting shareholder shall cease to have any interest in the
shares.
(12) (11) The judgment shall include an allowance for interest at a rate that the
court may find to be fair and equitable in all the circumstances, from the date
of acquisition proposed in the plan to the date of payment.
(13) (12) The costs and expenses of any proceeding shall be determined by the
court and shall be assessed against the parent corporation, but all or any part
of the costs and expenses may be apportioned and assessed as the court may deem
equitable against any or all of the dissenting shareholders who are parties to
the proceeding to whom the parent corporation shall have made an offer to pay
for the shares, if the court shall find that the action of the shareholders in
failing to accept the offer was arbitrary or vexatious or not in good faith.
The expenses shall include reasonable compensation for and reasonable expenses
of the counsel for any experts employed by any party; but if the fair value of
the share as determined materially exceeds the amount which the parent
corporation offered to pay, or if no offer was made, the court in its
discretion may award to any shareholder who is a party to the proceeding the
sum as the court may determine to be reasonable compensation to any expert or
experts employed by the shareholder in the proceeding.
(14) (13) Within twenty (20) days after demanding payment for his or her shares,
each shareholder demanding payment shall submit the certificate or certificates
representing his or her shares to the parent corporation for notation thereon
on the certificate or certificates that the demand has been made. The
shareholder's failure to do so shall, at the option of the parent corporation,
terminate the shareholder's rights under this subsection unless a court of
competent jurisdiction, for good and sufficient cause shown, otherwise directs.
If shares represented by a certificate on which notation has been so made shall
be transferred, each new certificate issued shall bear similar notation,
together with the name of the original dissenting holder of the shares, and a
transferee of the shares shall acquire by transfer no rights in the insurance
company other than those which the original dissenting shareholder had after
making demand for payment of the fair value thereof of the shares.
27-1-40. Conversion
to stock form of organization. -- (a) Any mutual insurance company created under the laws of this state
which meets or exceeds all capital and surplus funds required by law for the
transaction of business in Rhode Island may convert to and become an insurance
company with a capital stock form of organization upon adoption of a plan of
conversion by two-thirds (2/3) vote of the board of directors or other governing
body and approval of the plan by the director of the department of business
regulation and the affirmative vote of one half (1/2) of its members or
policyholders present in person or by proxy at a meeting called by the board of
directors or other governing body. Unless otherwise provided in its charter or by-laws
bylaws or plan of conversion, each member or policyholder shall have one
vote, and in the case of any policy or contract of group life or other group
insurance, the employer or other person to whom or in whose name the master
policy or contract has been issued shall be deemed to be the member or
policyholder and shall be entitled to one vote for each policy or contract of
group insurance irrespective of the number of individuals insured. The plan of
conversion shall provide that the insurance company shall issue and sell the
stock issued in connection with the conversion at a price which represents its
pro forma market value, as determined by an independent appraisal, and shall
offer its stock, initially, in a subscription offering to the members or
policyholders, individuals in the insurance company's management, and employee
groups of the insurance company on an eligibility record date established by
the board of directors, giving the members or policyholders, individuals in the
insurance company's management, and employee groups priority rights to purchase
the shares over the general public pro rata. The plan of conversion may provide
for the establishment of accounts for the benefit of members or policyholders
pursuant to which the converting insurance company shall provide for the
continued maintenance of its dividend practices required by existing charter, by-laws
bylaws, or policy provisions relative to its then existing lines of
business, but assets in the account will be assets of the converting insurance
company, subject to liabilities in the same manner and priority as all other
assets of the company. The plan of conversion may provide for restrictions on
the amount of stock which any person or entity may purchase in the conversion,
or own or control thereafter after this, which may also be
incorporated into the stock charter or agreement of association of the
converted entity.
(b) In connection
with the conversion, the insurance company may form a holding company or
utilize an existing holding company to hold all the shares of the converted
entity, and offer to its members or policyholders and the general public,
subject to subscription rights in favor of members or policyholders as stated above
in subsection (a), all of the stock of the holding company in lieu of
the capital stock of the converting insurance company. The converting insurance
company may, at the time of the conversion, merge any insurance company
subsidiary into the capital stock entity resulting from the conversion, or
cause the subsidiary to become a separate subsidiary of a holding company.
(c) The corporate
existence of an insurance company converting to the stock form of organization
shall not terminate, but the converted institution shall be deemed to be a
continuation of entity of the converted insurance company so converted
.
(d) The director of
the department of business regulation, upon finding that the requirements of
this section and applicable regulations have been met, that the terms and
conditions of the plan are fair and equitable, and that the conversion has been
completed with the sale of all shares offered in the conversion, shall issue a
certificate of approval of the conversion to the converted entity. Upon the
payment of fifty dollars ($50.00), the certificate of approval shall be filed
in the office of the secretary of state, together with the certificate of the
general treasurer that the converted entity has paid into the treasury for the
use of the state a sum equal to one-tenth of one percent (.1%) of the capital
stock, but in no event less than ten thousand dollars ($10,000). Upon the
filing of the certificate with the secretary of state and payment of fifty
dollars ($50.00), the secretary of state shall immediately record the
certificate of approval and stock charter or agreement of association, whereupon
then the stock charter or agreement of association will become
effective.
(e) The director of
the department of business regulation may employ staff personnel as well as and
professional consultants and other persons to assist in the review of the plan
of conversion and may hold public hearings as, in the director's discretion,
are desirable prior to granting approval of the plan of conversion. All reasonable
costs related to the review of the plan of conversion, including the costs
attributable to staff personnel and professional consultants, shall be borne by
the insurance company filing a plan of conversion for approval.
(f) The department of
business regulation shall issue rules and regulations implementing this
section, which shall be administered by the director of the department of
business regulation.
(g) To the extent not
inconsistent herewith with this section, each insurance company
converted into a capital stock insurance company shall have all the powers,
privileges, including the right to merge, convert, or otherwise restructure its
corporate form upon a two-thirds (2/3) vote of its stockholders and subject to
any regulatory approval as required by law, and duties and liabilities imposed
upon insurance companies generally under the laws of this state, as applicable.
Unless otherwise governed by the laws of this state specifically applicable to
insurance companies, a capital stock entity converted pursuant to this section
shall be subject to the general provisions of the Rhode Island Business
Corporation Act, chapter 1.1 of title 7, with respect to its corporate
governance.
SECTION 6. Section
27-1.1-4 of the General Laws in Chapter 27-1 entitled "Credit for
Reinsurance Act" is hereby amended to read as follows:
27-1.1-4. Rules and regulations. -- The commissioner may adopt reasonable rules and regulations
implementing the provisions of this law.
SECTION 7.
Section 27-1.1-8 of the General Laws in chapter 27-1 entitled "Credit for
Reinsurance Act" is hereby repealed.
27-1.1-8.
Regulations. -- The
commissioner may adopt reasonable rules and regulations for the implementation
of this chapter.
SECTION 8. Section 27-2-25
of the General Laws in Chapter 27-2 entitled "Foreign Insurance
Companies" is hereby amended to read as follows:
27-2-25.
Notice of revocation or suspension of license. -- The insurance commissioner shall give written
notice to the company specifying the date on which any revocation or suspension
shall be effective, the term of any suspension, and the ground for the
revocation or suspension; provided, that if the ground for revocation or
suspension is that the company has violated any provision of law or has failed
to comply with its charter, the effective date of the revocation or suspension
shall be not less than ten (10) days from the date of issue of the notice, and
the particulars of the violation or failure to comply with its charter shall be
specified in the notice. The notice shall be served by registered or certified
mail, sent postage prepaid, and addressed to the company at its last home
office address, or in the case of a company of a foreign country, sent to its
resident manager in the United States or at his last address appearing on the
records of the insurance commissioner. An affidavit of the insurance
commissioner in any form as the commissioner may prescribe, or of anyone
authorized by him or her to give notice, appended to a copy thereof of
the notice, that the notice has been mailed as provided above in
this section shall be prima facie evidence that the notice has been duly
given. The insurance commissioner shall also cause notice of the revocation or
suspension to be published in any manner as the commissioner may deem necessary
for the protection of the public.
SECTION 9.
Section 27-2.1-4 of the General Laws in Chapter 27-2.1 entitled
"Additional Fees for Foreign Insurance Companies" is hereby amended
to read as follows:
27-2.1-4. Use of fees. -- Any and all fees as prescribed by this section
chapter shall be paid to the general treasurer of the state of Rhode
Island.
SECTION
10. Sections 27-2.4-20 of the General Laws in Chapter 27-2.4 entitled
"Producer Licensing Act" is hereby amended to read as follows:
27-2.4-20.
Revocation or modification of insurance producer's contract - Procedures. -- (a) No company shall cancel the authority of an insurance producer, if
the insurance producer is not an employee of the company, and no company shall
modify a contract with that insurance producer unless the company gives written
notice of its intent to cancel that insurance producer or its intent to modify
the contract at least one hundred eighty (180) days before the proposed
effective date of any cancellation or at least one hundred eighty (180) days
before the proposed effective date of any modification. No company shall allow
the license of that insurance producer to expire unless the company gives
written notice of its intent to do so at least one hundred eighty (180) days
before the proposed effective date of expiration because of cancellation.
Except as otherwise provided in this section, any insurance producer receiving
notice of cancellation, modification, or expiration may, within sixty (60) days
after receipt of the notice, make a written demand for reference to three (3)
referees of the question as to whether or not the cancellation, modification,
or expiration will so affect the renewal, continuation, or replacement
of any policies placed with the company through the efforts of the insurance
producer, or the services needed by any policyholder doing business with the
company as a result of the efforts of the insurance producer, as to justify
renewal or continuation of any policies then in effect having been placed with
the company by that insurance producer. In the event the referees find that the
cancellation, modification, or expiration will so affect the renewal,
continuation, or replacement of any policies placed with the company through
the efforts of the insurance producer, or the services needed by any
policyholders doing business with the company as a result of the efforts of the
insurance producer, then the referees shall order continuance or renewal of any
policies expiring within a period of twelve (12) months of the issuance of the
notice, at a rate of compensation to the insurance producer equal to that as
provided in the agreement expiring or being so cancelled or modified,
for one additional policy period equal in length to the most recent policy
period of the expiring policy, but in no event for more than one year. However,
the The referees shall not order continuance or renewal of any
policies if they find that the reason for the cancellation or expiration of the
agreement by the company was legitimately based upon one of the following
grounds:
(1) The insurance
producer was convicted of a dishonest act related to his or her occupation as
an insurance agent;
(2) The insurance
producer's license to engage as an insurance producer was revoked; or
(3) The company
surrendered its license to do business in the state.
(b) An insurance
producer making a written demand for a reference shall accompany the written
demand with the names and addresses of three (3) persons, whereupon the
company shall, within fifteen (15) days, notify the insurance producer of its
choice of one of the persons to act as one of the referees and at the same time
submit the names and addresses of three (3) persons to the insurance producer,
who shall, within fifteen (15) days after receiving these names, notify the
company in writing of his her choice of one of the persons to act as a second
referee. At the same time the insurance producer shall notify the commissioner,
the notice to be on a form prescribed by the commissioner, that both the
company and insurance producer have chosen referees. Within ten (10) days of
the receipt of this notice the commissioner shall appoint a person to serve as
third referee, and shall notify that person, the insurance producer, and the
company in writing of this appointment. Each person nominated or appointed as a
referee shall be a disinterested person, shall be a resident of the state, and
shall be willing to act as a referee. Within ten (10) working days of the appointment
of the third referee, who shall serve as chairperson, the three (3) referees
shall meet, hear evidence, and reduce their decisions to writing and sign it,
and shall deliver a copy of the decision to the insurance producer, to the
company, and to the commissioner. In the event any company receiving a written
demand for a reference fails to comply with the provisions of this subsection,
then the insurance producer shall have the authority to renew or continue any
policies placed with that company through the efforts of the insurance producer
expiring within a period of thirteen (13) months from the date of the notice of
cancellation, modification, or expiration of the agreement, at a rate of
compensation to the insurance producer equal to that as provided in the
agreement expiring or being so cancelled or modified, for one additional
policy period equal in length to the most recent policy period of the expiring
policy, but in no event for more than one year.
(c) Any insurance
company and any insurance producer may by written contract agree to modify the
provisions of subsections (a) and (b) of this section other than the
requirement of a one hundred eighty (180) day notice in the event of
cancellation or a one hundred eighty (180) day notice in the event of
modification of a contract or of intent to allow the expiration of a license,
by provisions presented to and approved by the commissioner which he or she
finds after due hearing and investigation will adequately protect both the
right of the policyholder to a continuance of insurance and the services of any
insurance producer of his or her own choosing and the right of the insurance
producer to fair compensation for the insurance placed with a company as a
result of the insurance producer's efforts. The commissioner may make
reasonable rules of general application regarding these modified provisions.
(d) The decision of
the referees may provide for the renewal or continuance of any or all policies
expiring within a period of twelve (12) months of the issuance of any notice,
at a rate of compensation to the insurance producer equal to that as provided
in the agreement expiring or being so cancelled or modified, for one
additional policy period equal in length to the most recent policy period of
the expiring policy, but in no event for more than one year. The decision of
the referees may also provide for the continuance of previous contractual
provisions, if the referees, or a majority of them, find that the decision will
best protect the right of a policyholder to a continuance of insurance and the
services of an insurance producer of his or her own choosing and the right of
any insurance producer to compensation for the insurance placed with a company
as a result of his or her efforts, giving due consideration to the possibility
the affected insurance producer has of obtaining similar coverage for
policyholders affected from other companies at reasonable compensation. The
decisions rendered in accordance with the provisions of this section providing
for reference shall be binding on all companies and insurance producer affected
by those decisions. If a decision orders the renewal or continuance of any
policies, policyholders and the affected insurance producer shall be entitled
in all respects to the same services and practices as were in effect prior to
reference insofar as amounts and types of coverage, credit terms, commissions
paid to the insurance producer, and insurance producer services are also
continued.
(e) All policies
expiring within twelve (12) months of the notice may be renewed for the policy
periods as provided in subsection (d) of this section above, but
no insurance producer or company relying on this section shall again refer the
same issue to referees. Where other provisions of the general laws require
notice to policyholders before non -renewal of any coverages, the
company shall, at the request of the insurance producer who is unable to
replace any policy which has been renewed for one or more policy periods in
accordance with this section, comply with those provisions of law.
(f) An insurance producer initiating
reference under this section and the company receiving written demand shall
each be liable for the payment of the reasonable charges and expenses of his or
her nominee for referee and one-half (1/2) of the compensation for the
reasonable charges and expenses of the third referee. The third referee shall
upon the execution of the decision furnish the insurance producer and the
company with a written statement specifying in detail his or her charges for
compensation and expenses. The insurance producer or the company, if aggrieved
by these charges, may petition the commissioner for review. The petition shall
set forth with particularity the specific item or charges in dispute. The commissioner
shall, within ten (10) days of receipt of the petition, notify the interested
parties of the date established for a hearing on the petition and, after the
hearing, the commissioner shall approve or disapprove the charges in whole or
in part, his or her findings and decisions shall be final and conclusive.
SECTION 11. Sections 27-3.2-5 and 27-3.2-9 of
the General Laws in chapter 27-3.2 entitled "Continuing Education
Requirements" are hereby amended to read as follows:
27-3.2-5.
Continuing education advisory board. --
There shall hereby be
is established the continuing education advisory board. This board shall
consist of two (2) representatives of the Rhode Island Life Underwriters
Association, three (3) representatives of the Independent Insurance Agents of
Rhode Island, two (2) representatives of the Chartered Life Underwriters, and
two (2) representatives of the Chartered Property and Casualty Underwriters.
The board members shall be appointed by the commissioner and shall serve two
(2) year terms. ; provided, however, that the initial term of one
representative of each of the above organizations shall be one year. The
board shall meet at least once a year and additionally as required. This board
shall advise the insurance commissioner on the plans and operations of the
continuing education program for any person licensed pursuant to this title and
not exempt under § 27-3.2-3.
27-3.2-9. Fee. -- Notwithstanding any provision of the general laws to the contrary, there
is hereby established a fee of five dollars ($5.00) per annum, which
shall be paid by all persons licensed pursuant to chapter 2.3 2.4
of this title, and shall be deposited as general revenues.
SECTION
12. Sections 27-4-6, 27-4-13.1, 27-4-17, 27-4-18 and 27-4-22 of the General Laws
in chapter 27-4 entitled "Life Insurance Policies and Reserves" are
hereby amended to read as follows:
27-4-6. Terms to be
stated in policy - Rebates prohibited. -- (a) No life insurance corporation
doing business in this state, nor any insurance producer thereof of
the corporation, shall permit, offer, or make any contract of insurance or
agreement as to any contract other than as plainly expressed in the policy
issued thereon on the contract or agreement; nor shall any
company or any officer, insurance producer, or representative thereof of
the company or producer pay, allow, or give, or offer to pay, allow, or
give, directly or indirectly, as inducement to any person to insure, or give, sell,
or purchase, or offer to give, sell, or purchase as an inducement or in
connection with any insurance, any stocks, bonds, or other securities of any
insurance company or other corporation, association, or partnership, or any
dividends or profits accruing thereon on the securities, or any
valuable consideration or inducement whatever not specified in the policy, nor
shall any person knowingly receive as an inducement any rebate of premium, or
any special favor or advantage in the dividends or other benefits, to
accrue thereon, or any paid employment or contract for services of any
kind, or any valuable consideration or inducement whatever, not specified in
the policy.
(b) Provided, however, that Nothing in
this section shall be construed as to forbid a company transacting
industrial insurance on a weekly payment plan from returning to policyholders
who have made premium payments for a period of at least one year, directly to
the company at its home or district offices, a percentage of the premium which
the company would have paid for the weekly collection of the premiums.
27-4-13.1. Policy
loan interest rates. -- (a) The
term "Published monthly average" means:
(1) Moody's corporate
bond yield average - monthly average corporates, as published by Moody's
Investors Service, Inc. or any successor; thereto; or
(2) In the event that
the Moody's corporate bond yield average - monthly average corporates is no
longer published, a substantially similar average, established by regulation
issued by the commissioner.
(b) (1) Policies
issued on or after May 25, 1982, shall provide for policy loan interest rates
as follows:
(i) A provision
permitting a maximum interest rate of not more than eight percent (8%) per annum;
or
(ii) A provision
permitting an adjustable maximum interest rate established from time to time by
the life insurer as permitted by law.
(2) The rate of
interest charged on a policy loan made under subdivision (b)(1)(ii) shall not
exceed the higher of the following:
(i) The published
monthly average for the calendar month ending two (2) months before the date on
which the rate is determined; or
(ii) The rate used to
compute the cash surrender values under the policy during the applicable period
plus one percent (1%) per annum.
(3) If the maximum
rate of interest is determined pursuant to subdivision (b)(1)(ii), the policy
shall contain a provision setting forth the frequency at which the rate is to
be determined for that policy.
(4) The maximum rate
for each policy must be determined at regular intervals at least once every twelve
(12) months, but not more frequently than once in any three (3)
month period. At the intervals specified in the policy:
(i) The rate being
charged may be increased whenever an increase as determined under
subdivision (b)(2) would increase that rate by one half of one percent (.5%) or
more per annum;
(ii) The rate being
charged must be reduced whenever a reduction as determined under
subdivision (b)(2) would decrease that rate by one half of one percent (.5%) or
more per annum.
(5) The life insurer
shall:
(i) Notify the policy
holder policyholder at the time a cash loan is made of the
initial rate of interest on the loan;
(ii) Notify the policy
holder policyholder with respect to premium loans of the
initial rate of interest on the loan as soon as it is reasonably practical to
do so after making the initial loan. Notice does not need not to
be given to the policyholder when a further premium loan is added, except
as provided in subdivision (b)(5)(iii);
(iii) Send to
policyholders with loans reasonable advance notice of any increase in the rate;
and
(iv) Include in the
notices required above in subdivision (5) of this section the
substance of the pertinent provisions of subdivisions (b)(1) and (b)(3).
(6) No policy shall
terminate in a policy year as the sole result of a change in the interest rate
during that policy year, and the life insurer shall maintain coverage during
that policy year until the time at which it would otherwise have
terminated if there had been no change during that policy year.
(7) The substance of
the pertinent provisions of subdivisions (b)(1) and (b)(3) shall be set forth
in the policies to which they apply.
(8) For purposes of
this section:
(i) The rate of
interest on policy loans permitted under this section includes the interest
rate charged on the reinstatement of policy loans for the period during and
after any lapse of a policy;
(ii) The term
"Policy loan" includes any premium loan made under a policy to pay
one or more premiums that were not paid to the life insurer as they fell
became due;
(iii) The term
"Policyholder" includes the owner of the policy or the person designated
to pay premiums as shown on the records of the life insurer; and
(iv) The term
"Policy" includes certificates issued by a fraternal benefit society
and annuity contracts which that provide for policy loans.
(9) No other
provision of law shall apply to policy loan interest rates unless made
specifically applicable to those rates.
(c) The
provisions of this section shall not apply to any insurance contract issued
before May 25, 1982, unless the policyholder agrees in writing to the
applicability of this section.
27-4-17. Annual valuation of policies and reserves. - (a) The director of business
regulation shall annually make annual valuations of all
outstanding policies, additions thereto to policies, unpaid
dividends, and all other obligations of every life insurance corporation doing
business in this state. All valuations made by the director, or by his or her
authority, shall be made upon the net premium basis. The legal minimum standard
for valuation of contracts issued before January 1, 1907, shall be the American
experience table of mortality with the interest at four percent (4%) per annum,
and for contracts issued on or after that date the same table of mortality with
interest at three and one-half percent (3 1/2%) per annum. Any company may
adopt as a legal minimum standard, for the valuation of life insurance policies
issued on or after January 1, 1948, the commissioners reserve valuation method,
with interest at three and one-half percent (3 1/2%) per annum, or in the case
of policies issued on or after April 17, 1975, four percent (4%) per annum for
policies issued prior to April 27, 1979, and four and one-half percent (4 1/2%)
per annum for policies issued on or after April 27, 1979, and either the
commissioners 1941 standard ordinary mortality table or the commissioners 1958
standard ordinary mortality table for ordinary policies, and either the 1941
standard industrial mortality table or the commissioners 1961 standard
industrial mortality table or any industrial mortality table, adopted after
1980 by the National Association of Insurance Commissioners, that is approved
by regulation promulgated by the commissioner for use in determining the
minimum standard of valuation for industrial policies, for industrial policies
in lieu of the legal minimum standard hereinabove allowed by this
section.
(b) The interest rates used in determining the minimum standard for the valuation of all life insurance policies issued in a particular calendar year on or after May 15, 1981, shall be the calendar year statutory valuation interest rates as defined in this section.
(c) (1) The calendar year statutory valuation interest rates shall be determined as follows and the results rounded to the nearer one-quarter of one percent (.25%):
For life insurance:
I = .03 + W (R1 - .03) + W/2 (R1 - .09); where R1 is the lesser of R and .09, R2 is the greater of R and .09, R is the reference interest rate defined in this section, and W is the weighting factor defined in this section;
(2) However, i If the calendar year statutory
valuation interest rate for any life insurance policies issued in any calendar
year determined without reference to subdivision (c)(1) differs from the
corresponding actual rate for similar policies issued in the immediately
preceding calendar year by less than one-half of one percent (.5%), the
calendar year statutory valuation interest rate for these life insurance
policies shall be equal to the corresponding actual rate for the immediately
preceding calendar year. For the purposes of applying the provisions in this
subdivision the immediately preceding sentence, the calendar year
statutory valuation interest rate for life insurance policies issued in a
calendar year shall be determined for 1980 using the reference interest rate
defined for 1979 and shall be determined for each subsequent calendar year.
(3)
The weighting factors referred to in the formula stated above in
subdivision (c)(1) are given in the following table:
Weighting Factors for Life Insurance:
Guarantee
Duration Weighting
(Years) Factors
10 or less .50
More than 10, but not more than 20 .45
More than 20 .35
For life insurance, the guarantee duration is the maximum number of years the life insurance can remain in force on a basis guaranteed in the policy or under options to convert to plans of life insurance with premium rates or non-forfeiture values or both which are guaranteed in the original policy.
(4) The reference interest rate referred to in subdivision (c)(1) shall be defined as follows:
(i) For all life insurance, the lesser of the average over a
period of thirty-six (36) months and the average over a period of twelve (12)
months, ending on June 30 of the calendar year next preceding the year of
issue, of Moody's corporate bond yield average - monthly average corporates, as
published by Moody's Investors Service, Inc., or any successor; thereto;
or
(ii) In the event that the Moody's corporate bond yield average - monthly average corporates is no longer published by Moody's Investors Service, Inc., or in the event that the National Association of Insurance Commissioners determines that the Moody's corporate bond yield average - monthly average corporates, as published by Moody's Investors Service, Inc., is no longer appropriate for the determination of the reference interest rate, then an alternative method for determination of the references interest rate, which is adopted by the National Association of Insurance Commissioners and approved by regulation promulgated by the commissioner, may be substituted.
(d) The mortality table used in determining the minimum standard for the valuation of ordinary life insurance policies issued on or after May 15, 1981, shall be:
(1) The commissioners 1980 standard ordinary mortality table;
(2) At the election of the company for any one or more specified plans of life insurance, the commissioners 1980 standard ordinary mortality table with ten (10) year select mortality factors; or
(3) Any ordinary mortality table, adopted after 1980 by the National Association of Insurance Commissioners, that is approved by regulation promulgated by the commissioner for use in determining the minimum standard of valuation for these policies.
(e) Reserves for any category of policies or
contracts may be calculated, at the option of the insurer, according to any
standard or standards which produce greater aggregate reserves for all policies
or contracts than the legal minimum standard or standards.
27-4-18. Variance from
valuation standards. -- The
director of business regulation may vary the standards of interest and
mortality in the case of corporations from foreign countries as to contracts
issued by these corporations in countries other than the United States, and in
particular cases of invalid lives and other extra hazards, and value policies
seriatim or in groups, use approximate averages for fractions of a year and
otherwise, and accept the valuation of the department of insurance of any other
state or country if made upon the basis of, and according to, standards not
lower than herein required or authorized by §§ 27-4-17 - 27-4-20,
in place of the valuation herein required by §§ 27-4-17 - 27-4-20.
27-4-22. Assignment
of interest under group life insurance. --
Subject to the terms of
the policy relating to assignment of incidents of ownership thereunder under
the policy, a person whose life is insured under a policy of group life
insurance may assign any or all incidents of ownership granted that person
under the policy, including but not limited to any right to designate a
beneficiary, to have an individual policy issued to him or her, and to pay
premiums. Any assignment by the insured, made either before or after May 7,
1970, shall be valid for the purpose of vesting in the assignee, in
accordance with any provisions included therein in the policy as
to the time at which it is to be effective, all of the incident of ownership so
assigned, but without prejudice to the insurer on account of any payment it may
make or individual policy it may issue without notice of the assignment.
This section shall be construed as being declaratory of the law in effect prior
to May 7, 1970 and not as modifying, altering, or amending that law.
SECTION 13. Section
27-4.2-5 of the General Laws in chapter 27-4.2 entitled "Life and Health
Reinsurance Agreements Act" is hereby repealed.
27-4.2-5.
Existing agreements. -- Insurers subject to this chapter shall reduce
to zero (0) by December 31, 1997, any reserve credits or assets established
with respect to reinsurance agreements entered into prior to the effective date
of this law which, under the provisions of this law would not be entitled to
recognition of the reserve credits or assets; provided, however, that the
reinsurance agreements shall have been in compliance with laws or regulations
in existence immediately preceding the effective date of this regulation.
SECTION 14. Sections
27-4.3-5 and 27-4.3-8 of the General Laws in Chapter 27-4.3 entitled "The
Standard Nonforfeiture Law for Life Insurance" are hereby amended to read
as follows:
27-4.3-5.
Calculations of adjusted premiums by the nonforfeiture net level premium
method. -- (a) This section
shall apply to all policies issued on or after January 1, 1994. Except as
provided in subsection (g) of this section, the adjusted premiums for any
policy shall be calculated on an annual basis and shall be a uniform percentage
of the respective premiums specified in the policy for each policy year,
excluding amounts payable as extra premiums to cover impairments or special
hazards, and also excluding any uniform annual contract charge or policy fee
specified in the policy in a statement of the method to be used in calculating
the cash surrender values and paid up nonforfeiture benefits, so that the
present value, at the date of issue of the policy, of all adjusted premiums
shall be equal to the sum of: (1) the then present value of the future
guaranteed benefits provided for by the policy; (2) one percent (1%) of either
the amount of insurance, if the insurance be uniform in amount, or the average
amount of insurance at the beginning of each of the first ten (10) policy
years; and (3) one hundred twenty-five percent (125%) of the nonforfeiture net
level premium as hereinafter defined in subsection (b); provided,
however, that in applying the percentage specified in (item 3) above
subdivision (a)(3), no nonforfeiture net level premium shall be deemed to
exceed four percent (4%) of either the amount of insurance, if the insurance is
uniform in amount, or the average amount of insurance at the beginning of each
of the first ten (10) policy years. The date of issue of a policy for the
purpose of this section shall be the date as of which the rated age of the
insured is determined.
(b) The nonforfeiture net level premium shall be equal to the
present value, at the date of issue of the policy, of the guaranteed benefits
provided for by the policy divided by the present value, at the date of issue
of the policy, of an annuity of one per annum payable on the date of issue of
the policy and on each anniversary of the policy on which a premium falls due.
(c) In the case of policies which cause on a basis guaranteed
in the policy unscheduled changes in benefits or premiums, or which provide an
option for changes in benefits or premiums, other than a change to a new
policy, the adjusted premiums and present values shall initially be calculated
on the assumption that future benefits and premiums do not change from those
stipulated at the date of issue of the policy. At the time of any change in the
benefits or premiums the future adjusted premiums, nonforfeiture net level
premiums, and present values shall be recalculated on the assumption that
future benefits and premiums do not change from those stipulated by the policy
immediately after the change.
(d) Except as otherwise provided in subsection (g), the
recalculated future adjusted premiums for any policy shall be a uniform
percentage of the respective future premiums specified in the policy for each
policy year, excluding amounts payable as extra premiums to cover impairments
and special hazards, and also excluding any uniform annual contract charge or
policy fee specified in the policy in a statement of the method to be used in calculating
the cash surrender values and paid up nonforfeiture benefits, so that the
present value, at the time of change to the newly defined benefits or premiums,
of all future adjusted premiums shall be equal to the excess of: (1) the
sum of: (i) the then present value of the then future guaranteed
benefits provided for by the policy and (ii) the additional expense allowance,
if any, over (2) the then cash surrender value, if any, or present value of any
paid up nonforfeiture benefit under this policy.
(e) The additional expense allowance, at the time of the
change to the newly defined benefits or premiums, shall be the sum of:
(1) one percent (1%) of the excess, if positive, of the average amount of
insurance at the beginning of each of the first ten (10) policy years
subsequent to the change over the average amount of insurance prior to the
change at the beginning of each of the first ten (10) policy years subsequent
to the time of the most recent previous change, or, if there has been no
previous change, the date of issue of the policy; and (2) one hundred
twenty-five percent (125%) of the increase, if positive, in the nonforfeiture
net level premium.
(f) The recalculated nonforfeiture net level premium shall be
equal to the result obtained by dividing subdivision (f)(1) by subdivision
(f)(2) where:
(1) Equals the sum of:
(i) The nonforfeiture net level premium applicable prior to
the change multiplied by the present value of an annuity of one per annum
payable on each anniversary of the policy on or subsequent to the date of the
change on which a premium would have fallen due had the change not occurred,
and
(ii) The present value of the increase in future guaranteed
benefits provided for by the policy; and
(2) Equals the present value of an annuity of one per annum
payable on each anniversary of the policy on or subsequent to the date of
change on which a premium falls due.
(g) Notwithstanding any other provisions of this section to
the contrary, in the case of a policy issued on a substandard basis which
provides reduced graded amounts of insurance so that, in each policy year, the
policy has the same tabular mortality cost as an otherwise similar policy
issued on the standard basis which provides for a higher uniform amount of
insurance, adjusted premiums and present values for the substandard policy may
be calculated as if it were issued to provide the higher uniform amounts of
insurance on the standard basis.
(h) All adjusted premiums and present values referred to in
this chapter shall for all policies of ordinary insurance be calculated on the
basis of (1) the commissioners 1980 standard ordinary mortality table or,
(2) at the election of the insurance company for any one or more
specified plans of life insurance, the commissioners 1980 standard ordinary
mortality table with ten (10) year select mortality factors; adjusted
premiums and present values shall for all policies of industrial insurance
be calculated on the basis of the commissioners 1961 standard industrial
mortality table; and adjusted premiums and present values shall for all
policies issued in a particular calendar year be calculated on the basis of a
rate of interest not exceeding the nonforfeiture interest rate as defined in
this section, for policies issued in that calendar year; provided, however,
that:
(1) At the option of the insurance company, calculations for
all policies issued in a particular calendar may be made on the basis of a rate
of interest not exceeding the nonforfeiture interest rate, as defined in this
section, for policies issued in the immediately preceding calendar year;
(2) Under any paid-up nonforfeiture benefit, including any
paid-up dividend additions, any cash surrender value available, whether or not
required by § 27-4.3-2, shall be calculated on the basis of the mortality table
and rate of interest used in determining the amount of any paid-up
nonforfeiture benefit and paid-up dividend additions, if any;
(3) An insurance company may calculate the amount of any
guaranteed paid-up nonforfeiture benefit including any paid-up additions under
the policy on the basis of an interest rate no lower than that specified in the
policy for calculating cash surrender values;
(4) In calculating the present value of any paid-up term
insurance with accompanying pure endowment, if any, offered as a nonforfeiture
benefit, the rates of mortality assumed may be not more than those shown in the
commissioners 1980 extended term insurance table for policies of ordinary
insurance and not more than the commissioners 1961 industrial extended term
insurance table for policies of industrial insurance;
(5) For insurance issued on a substandard basis, the
calculation of any adjusted premiums and present values may be based on
appropriate modifications of the aforementioned tables mentioned in
this subsection;
(6) Any ordinary mortality tables, adopted after 1980 by the National Association of Insurance Commissioners, that are approved by regulation promulgated by the commissioner of insurance for use in determining the minimum nonforfeiture standard, may be substituted for the commissioners 1980 standard ordinary mortality table with or without ten (10) year select mortality factors or for the commissioners 1980 extended term insurance table; and
(7) Any industrial mortality tables, adopted after 1980 by the National Association of Insurance Commissioners, that are approved by regulation promulgated by the commissioner of insurance for use in determining the minimum nonforfeiture standard, may be substituted for the commissioners 1961 standard industrial mortality table or the commissioners 1961 industrial extended term insurance table.
(i) The nonforfeiture interest rate per annum for any policy
issued in a particular calendar year shall be equal to one hundred and
twenty-five percent (125%) of the calendar year statutory valuation interest
rate for the policy as defined in chapter 4.5 of this title, rounded to the
nearer one-quarter of one percent (1/4 of 1%) (.25%).
(j) Notwithstanding any other provision in this title to the contrary, any refiling of nonforfeiture values or their methods of computation for any previously approved policy form which involves only a change in the interest rate or mortality table used to compute nonforfeiture values shall not require refiling of any other provisions of that policy form.
27-4.3-8. Consistency of progression of cash surrender values with
increasing policy duration. -- (a)
This section, in addition to all other applicable sections of this chapter,
shall apply to all policies issued on or after January 1, 1994. Any cash
surrender value available under the policy in the event of default in a premium
payment due on any policy anniversary shall be in an amount which does not
differ by more than two tenths of one percent (.2%) of either the amount of
insurance, if the insurance is uniform in amount, or the average amount of
insurance at the beginning of each of the first ten (10) policy years, from the
sum of: (1) the greater of zero (0) and the basic cash value hereinafter
specified in subsection (b), and (2) the present value of any existing paid up
additions less the amount of any indebtedness to the insurance company under
the policy.
(b) The basic cash
value shall be equal to the present value, on the anniversary, of the future
guaranteed benefits which would have been provided for by the policy, excluding
any existing paid-up additions and before deduction of any indebtedness to the
insurance company, if there had been no default, less the then present value of
the nonforfeiture factors, as defined in this section, corresponding to
premiums which would have fallen due on and after the anniversary; provided, however,
that the effects on the basic cash value of supplemental life insurance or
annuity benefits or of family coverage, as described in § 27-4.3-3 or 27-4.3-5,
whichever is applicable, shall be the same as are the effects specified in §
27-4.3-3 or 27-4.3-5, whichever is applicable, on the cash surrender values
defined in that section.
(c) The nonforfeiture
factor for each policy year shall be an amount equal to a percentage of the
adjusted premium for the policy year, as defined in § 27-4.3-5. Except as is
required by the next succeeding sentence of in this subsection,
the percentage:
(1) Must be the same percentage
for each policy year between the second policy anniversary and the later of:
(i) the fifth policy anniversary, and (ii) the first policy anniversary
at which there is available under the policy a cash surrender value in an
amount, before including any paid-up additions and before deducting any
indebtedness, of at least two tenths of one percent (.2%) of either the amount
of insurance, if the insurance is uniform in amount, or the average amount of
insurance at the beginning of each of the first ten (10) policy years; and
(2) Must be such that
no percentage after the later of the two policy anniversaries specified in
subdivision (c)(1) may apply to fewer than five (5) consecutive policy years.
(d) No basic cash
value may be less than the value which would be obtained if the adjusted
premiums for the policy, as defined in § 27-4.3-5, were substituted for the
nonforfeiture factors in the calculation of the basic cash value.
(e) All adjusted
premiums and present values referred to in this section shall for a particular
policy be calculated on the same mortality and interest bases as are used in
demonstrating the policy's compliance with the other sections of this chapter.
The cash surrender values referred to in this section shall include any endowment
benefits provided for by the policy.
(f) Any cash
surrender value available other than in the event of default in a premium
payment due on a policy anniversary, and the amount of any paid up
nonforfeiture benefit available under the policy in the event of default in a
premium payment, shall be determined in manners consistent with the
manners specified for determining the analogous minimum amounts in §§ 27-4.3-2
- 27-4.3-5 and 27-4.3-7. The amounts of any cash surrender values and of any
paid up nonforfeiture benefits granted in connection with additional benefits
such as those listed as items subdivisions (1) through (6) in
(1) - (6) of § 27-4.3-7 shall conform with the principles of this
section.
SECTION 15. Section
27-4.4-4 of the General Laws in Chapter 27-4.4 entitled "The Standard
Nonforfeiture Law for Individual Deferred Annuities" is hereby amended to
read as follows:
27-4.4-4. Minimum
values. -- (a) The minimum
values as specified in §§ 27-4.4-5 - 27-4.4-8 and 27-4.4-10 of any paid-up
annuity, cash surrender, or death benefits available under an annuity contract
shall be based upon minimum nonforfeiture amounts as defined in this section.
(b) With respect
to In contracts providing for flexible considerations, the minimum
nonforfeiture amount at any time at or prior to the commencement of any annuity
payments shall be equal to an accumulation up to that time at a rate of
interest of three percent (3%) per annum of percentages of the net
considerations as defined in this section paid prior to that time, decreased by
the sum of:
(1) Any prior withdrawals from or partial
surrenders of the contract accumulated at a rate of interest of three percent
(3%) per annum; and
(2)
The amount of any indebtedness to the company on the contract, including interest
due and accrued, and increased by any existing additional amounts credited by
the company to the contract.
(c)
The net considerations for a given contract year used to define the minimum
nonforfeiture amount shall be an amount not less than zero and shall be equal
to the corresponding gross considerations credited to the contract during that
contract year less an annual contract charge of thirty dollars ($30.00) and
less a collection charge of one dollar and twenty-five cents ($1.25) per
consideration credited to the contract during that contract year. The
percentages of net considerations shall be sixty-five percent (65%) of the net
consideration for the first contract year and eighty-seven and one-half percent
(87 1/2%) (87.5%) of the net considerations for the second and
later contract years. Notwithstanding the these net considerations provisions
of the preceding sentence, the percentage shall be sixty-five percent
(65%) of the portion of the total net considerations for any renewal contract
year which that exceeds by not more than two (2) times the
sum of those portions of the net considerations in all prior contract years for
which the percentage was sixty-five percent (65%).
(d) With respect
to In contracts providing for fixed scheduled considerations,
minimum nonforfeiture amounts shall be calculated on the assumption that
considerations are paid annually in advance and shall be defined as for
contracts with flexible considerations which are paid annually with two (2)
exceptions:
(1) The portion of
the net consideration for the first contract year to be accumulated shall be
the sum of sixty-five percent (65%) of the net consideration for the first
contract year plus twenty-two and one-half percent (22 1/2%) (22.5%)
of the excess of the net consideration for the first contract year over the
lesser of the net considerations for the second and third contract years; and
(2) The annual
contract charge shall be the lesser of (i) thirty dollars ($30.00) or (ii) ten
percent (10%) of the gross annual consideration.
(e) With respect
to In contracts providing for a single consideration, minimum
nonforfeiture amounts shall be defined as for contracts with flexible
considerations except that the percentage of net consideration used to
determine the minimum nonforfeiture amount shall be equal to ninety percent
(90%) and the net consideration shall be the gross consideration less a
contract charge of seventy-five dollars ($75.00).
SECTION 16. Sections 27-4.5-3,
27-4.5-4.1, and 27-4.5-5 of the General Laws in Chapter 27-4.5 entitled
"The Standard Valuation Law" are hereby amended to read as follows:
27-4.5-3. Actuarial
opinion of reserves. -- (a)
This section shall become operative at the end of the first full calendar year
following the year of enactment.
(a) (b) General. Every life insurance company doing business in this state
shall annually submit the opinion of a qualified actuary as to whether the
reserves and related actuarial items held in support of the policies and
contracts specified by the commissioner of insurance by regulation are computed
appropriately, are based on assumptions which satisfy contractual provisions,
are consistent with prior reported amounts, and comply with applicable laws of
this state. The commissioner of insurance by regulation shall define the
specifics of this opinion and add any other items deemed to be necessary to its
scope.
(b) (c) Actuarial analysis of reserves and assets supporting the reserves.
(1) Every life insurance company, except as
exempted by or pursuant to regulation, shall also annually include in the
opinion required by subsection (b) (a), an opinion of the
same qualified actuary as to whether the reserves and related actuarial items
held in support of the policies and contracts specified by the commissioner of
insurance by regulation, when considered in light of the assets held by the
company with respect to the reserves and related actuarial items, including,
but not limited to, the investment earnings on the assets and the
considerations anticipated to be received and retained under the policies and
contracts, make adequate provision for the company's obligations under the
policies and contracts, including, but not limited to, the benefits under and expenses
associated with the policies and contracts.
(2) The commissioner
of insurance may provide by regulation for a transition period for establishing
any higher reserves which that the qualified actuary may
deem necessary in order to render the opinion required by this section.
(c) (d) Requirement for opinion under subsection (c)(b). Each
opinion required by subsection (c)(b) shall be governed by the
following provisions:
(1) A memorandum, in form
and substance acceptable to the commissioner of insurance as specified by
regulation, shall be prepared to support each actuarial opinion; and
(2) If the insurance
company fails to provide a supporting memorandum at the request of the
commissioner of insurance within a period specified by regulation or the
commissioner of insurance determines that the supporting memorandum provided by
the insurance company fails to meet the standards prescribed by the regulations
or is otherwise unacceptable to the commissioner of insurance, the
commissioner of insurance may engage a qualified actuary for the opinion and
prepare the supporting memorandum as is required by the
commissioner of insurance.
(d) (e) Requirement for all opinions. Every opinion shall be governed by
the following provisions:
(1) The opinion shall
be submitted with the annual statement reflecting the valuation of the reserve
liabilities for each year ending on or after December 31, 1994;
(2) The opinion shall
apply to all business in force including individual and group health insurance
plans, in a form and substance acceptable to the commissioner of insurance as
specified by regulation;
(3) The opinion shall
be based on standards adopted from time to time by the actuarial
standards board and on any additional standards as that commissioner of
insurance may by regulation prescribe;
(4) In the case of an
opinion required to be submitted by a foreign or alien company, the
commissioner of insurance may accept the opinion filed by that company with the
insurance supervisory official of another state if the commissioner of
insurance determines that the opinion reasonably meets the requirements
applicable to a company domiciled in this state;
(5) For the purposes
of this section, "qualified actuary" means a member in good standing
of the American Academy of Actuaries who meets the requirements set forth in
the regulations;
(6) Except in cases
of fraud or willful misconduct, the qualified actuary shall not be liable for
damages to any person, other than the insurance company and the commissioner of
insurance, for any act, error, omission, decision, or conduct with respect to
the actuary's opinion;
(7) Disciplinary
action by the commissioner of insurance against the company or the qualified
actuary shall be defined in regulations by the commissioner of insurance; and
(8) Any memorandum in
support of the opinion, and any other material provided by the company to the
commissioner of insurance in connection therewith with the opinion,
shall be kept confidential by the commissioner of insurance and shall not be
made public and shall not be subject to subpoena, other than for the purpose of
defending an action seeking damages from any person by reason of any action
required by this section or by regulations promulgated hereunder under
this section; provided, however, that the memorandum or other
material may otherwise be released by the commissioner of insurance (i)
with the written consent of the company or (ii) to the American Academy of
Actuaries upon request stating that the memorandum or other material is
required for the purpose of professional disciplinary proceedings and setting
forth procedures satisfactory to the commissioner of insurance for preserving
the confidentiality of the memorandum or other material. Once any portion of
the confidential memorandum is cited by the company in its marketing or is
cited before any governmental agency other than a state insurance department or
is released by the company to the news media, all portions of the confidential
memorandum shall be no longer confidential.
27-4.5-4.1.
Computation of minimum standard by calendar year of issue. -- (a) Applicability.
of this section. The interest rates used in determining the minimum
standards for the valuation of: (1) all life insurance policies issued on or
after January 1, 1994; (2) all individual annuity and pure endowment contracts
issued in a particular calendar year on or after January 1, 1994; (3) all
annuities and pure endowments purchased in a particular calendar year on or
after January 1, 1994, under group annuity and pure endowment contracts; and
(4) the net increase, if any, in a particular calendar year after January 1,
1994, in amounts held under guaranteed interest contracts; shall be the
calendar year statutory valuation interest rates as defined in this section.
(b) Calendar year statutory valuation interest
rates.
(1) The calendar year
statutory valuation interest rates, "I", shall be determined as
follows and the results rounded to the nearer one-quarter of one percent (1/4
of 1%) (.25%), where R1 is the lesser of R and .09, R2 is the
greater of R and .09, R is the reference interest rate as defined in this
section, and W is the weighting factor as defined in this section:
(i)
For life insurance:
I = .03 + W(R1 - .03) + W/2(R2 - .09);
(ii)
For single premium immediate annuities and for annuity benefits involving life
contingencies arising from other annuities with cash settlement options and
from guaranteed interest contracts with cash settlement options:
I = .03 + W(R1 - .03);
(iii) For other
annuities with cash settlement options and guaranteed interest contracts with
cash settlement options, valued on an issued year basis, except as stated in
subdivision (b)(1)(ii), the formula for life insurance stated in subdivision
(b)(1)(i) shall apply to annuities and guaranteed interest contracts with
guarantee durations in excess of ten (10) years and the formula for single
premium immediate annuities stated in subdivision (b)(1)(ii) shall apply to
annuities and guaranteed interest contracts with guarantee duration of ten (10)
years or less;
(iv) For other
annuities with no cash settlement options and for guaranteed interest contracts
with no cash settlement options, the formula for single premium immediate
annuities stated in subdivision (b)(1)(ii) shall apply; and
(v) For other
annuities with cash settlement options and guaranteed interest contracts with
cash settlement options, valued on a change in fund basis, the formula for
single premium immediate annuities stated in subdivision (b)(1)(ii) shall
apply; and
(2) If, however, the
calendar year statutory valuation interest rate for any life insurance policies
issued in any calendar year determined without reference to this subsection
differs from the corresponding actual rate for similar policies issued in the
immediately preceding calendar year by less than one-half of one percent (1/2
of 1%) (.5%), the calendar year statutory valuation interest rate
for those life insurance policies shall be equal to the corresponding actual
rate for the immediately preceding calendar year. For the purposes of
applying the immediately preceding sentence, the calendar year statutory
valuation interest rate for life insurance policies issued in a calendar year
shall be determined for 1994 using the reference interest rate defined in 1993
by application of the standards specified in § 27-4-17(c)(2) and shall be
determined for each subsequent calendar year regardless of when § 27-4.3-5
becomes effective.
(c) Weighting factors. (1) The
weighting factors referred to in the formulas stated in subdivisions (b)(1)(i)
and (ii) are given in the following tables as follows:
Guarantee Duration (Years) Weighting Factors
10 or less .50
More than 10, but not more than 20 .45
More than 20 .35
For life insurance,
the guarantee duration is the maximum number of years the life insurance can
remain in force on a basis guaranteed in the policy or under options to convert
to plans of life insurance with premium rates or nonforfeiture values or both
which are guaranteed in the original policy;
(2) Weighting factor
for single premium immediate annuities and for annuity benefits involving life
contingencies arising from other annuities with cash settlement options and
guaranteed interest contracts with cash settlement options is .80;
(3) Weighting factors
for other annuities and for guaranteed interest contracts, except as stated in
subdivision (c)(2), shall be as specified in tables paragraphs
(i), (ii) and (iii) below, according to the rules and definitions in paragraphs
(iv), (v) and (vi) below:
(i) For annuities and
guaranteed interest contracts valued on an issue year basis:
Guarantee Duration (Years) Weighting Factor
for Plan Type
A B C
5 or less: .80 .60 .50
More than 5, but not more than 10: .75 .60
.50
More than 10, but not more than 20: .65 .50
.45
More than 20: .45 .35 .35
(ii) For annuities
and guaranteed interest contracts valued on a change in fund basis, the factors
show in subdivision (c)(3)(i) increased by:
Plan Type
A B C
.15 .25 .05
(iii) For annuities
and guaranteed interest contracts valued on an issued year basis, other than
those with no cash settlement options, which do not guarantee interest on
considerations received more than one year after issue or purchase and for
annuities and guaranteed interest contracts valued on a change in fund basis
which do not guarantee interest rates on consideration received more than
twelve (12) months beyond the valuation date, the factors shown in subdivision
(c)(3)(i) or derived in subdivision (c)(3)(ii) increased by:
Plan Type
A B C
.05 .05 .05
(iv) For other
annuities with cash settlement options and guaranteed interest contracts with
cash settlement options, the guarantee duration is the number of years for
which the contract guarantees interest rates in excess of the calendar year
statutory valuation interest rate for life insurance policies with guarantee
durations in excess of twenty (20) years. For other annuities with no cash
settlement options and for guaranteed interest contracts with no cash
settlement options, the guaranteed duration is the number of years from the
date of issue or date of purchase to the date annuity benefits are scheduled to
commence;
(v) Plan Type as used
in the above tables is defined as follows:
(A) Plan Type A: At
any time the policyholder may withdraw funds only (1)(I) with an
adjustment to reflect changes in interest rates or asset values since receipt
of the funds by the insurance company, or (2)(II) without an
adjustment but installments over five (5) years or more, or (3)(III)
as an immediate life annuity, or (4)(IV) no withdrawal permitted;
(B) Plan Type B:
Before expiration of the interest rate guarantee, the policyholder may withdraw
funds only (1)(I) with an adjustment to reflect changes in
interest rates or asset values since receipt of the funds by the insurance
company, or (2)(II) without an adjustment but in installments
over five (5) years or more, or (3)(III) no withdrawal permitted.
At the end of the interest rate guarantee, funds may be withdrawn without the
adjustment in a single sum or installments over less than five (5) years; and
(C) Plan Type C: The
policyholder may withdraw funds before the expiration of interest rate
guarantee in a single sum or installments over less than five (5) years either (1)(I)
without adjustment to reflect changes in interest rates or asset values since
receipt of the funds by the insurance company, or (2)(II) subject
only to a fixed surrender charge stipulated in the contract as a percentage of
the fund; and
(vi) A company may
elect to value guaranteed interest contracts with cash settlement options and
annuities with cash settlement options on either an issue year basis or on a
change in fund basis. Guaranteed interest contracts with no cash settlement
options and other annuities with no cash settlement options must be valued on
an issue year basis. As used in this section, "issue year basis of
valuation" refers to a valuation basis under which the interest rate used
to determine the minimum valuation standard for the entire duration of the
annuity or guaranteed interest contract is the calendar year valuation interest
rate for the year of issue or year of purchase of the annuity or guaranteed
interest contract, and "change in fund basis of valuation" refers to
a valuation basis under which the interest rate used to determine the minimum
valuation standard applicable to each change in the fund held under the annuity
or guaranteed interest contract is the calendar year valuation interest rate
for the year of the change in the fund.
(d) Reference interest rate. Reference
interest rate referred to in subsection (b) shall be defined as follows:
(1) For all life insurance,
the lesser of the average over a period of thirty-six (36) months and the
average over a period of twelve (12) months, ending on June 30 of the calendar
year next preceding the year of issue, of the monthly average of the composite
yield on seasoned corporate bonds, as published by Moody's Investors Service,
Inc.;
(2) For single
premium immediate annuities and for annuity benefits involving life
contingencies arising from other annuities with cash settlement options and
guaranteed interest contracts with cash settlement options, the average over a
period of twelve (12) months, ending on June 30 of the calendar year of issue
or year of purchase, of the monthly average of the composite yield on seasoned
corporate bonds, as published by Moody's Investors Service, Inc.;
(3) For other
annuities with cash settlement options and guaranteed interest contracts with
cash settlement options, valued on a year of issue basis, except as stated in subsdivision
subdivision (d)(2), with guarantee duration in excess of ten (10) years,
the lesser of the average over a period of thirty-six (36) months and the
average over a period of twelve (12) months, ending on June 30 of the calendar
year of issue or purchase, of the monthly average of the composite yield on
seasoned corporate bonds, as published by Moody's Investors Service, Inc.;
(4) For other
annuities with cash settlement options and guaranteed interest contracts with
cash settlement options, valued on a year of issue basis, except as stated in
subdivision (d)(2), with guarantee duration of ten (10) years or less, the
average over a period of twelve (12) months, ending on June 30 of the calendar
year of issue or purchase, of the monthly average of the composite yield on seasoned
corporate bonds, as published by Moody's Investors Service, Inc.;
(5) For other
annuities with no cash settlement options and for guaranteed interest contracts
with no cash settlement options, the average over a period of twelve (12)
months, ending on June 30 of the calendar year of issue or purchase, of the
monthly average of the composite yield on seasoned corporate bonds, as
published by Moody's Investors Service, Inc.; and
(6) For other
annuities with cash settlement options and guaranteed interest contracts with
cash settlement options, valued on a change in fund basis, except as stated in
subdivision (d)(2), the average over a period of twelve (12) months, ending on
June 30 of the calendar year of the change in the fund, of the monthly average
of the composite yield on seasoned corporate bonds, as published by Moody's
Investors Service, Inc.
(e) Alternative method for determining reference
interest rates. In the event that the monthly average of the composite
yield on seasoned corporate bonds is no longer published by Moody's Investors
Service, Inc., or in the event that the National Association of Insurance
Commissioners determines that the monthly average of the composite yield on
seasoned corporate bonds as published by Moody's Investors Service, Inc. is no
longer appropriate for the determination of the reference interest rate, then
an alternative method for determination of the reference interest rate, which
is adopted by the National Association of Insurance Commissioners and approved
by regulation promulgated by the commissioner of insurance, may be substituted.
27-4.5-5. Reserve
valuation method - Life insurance and endowment benefits. -- (a) Except as otherwise provided in §§
27-4.5-5.1, 27-4.5-8 and 27-4.5-10, reserves according to the commissioners'
reserve valuation method for the life insurance and endowment benefits of
policies providing for a uniform amount of insurance and requiring the payment
of uniform premiums shall be the excess, if any, of the present value, at the
date of valuation, of the future guaranteed benefits provided for by the
policies, over the then present value of any future modified net premiums. The
modified net premiums for any policy shall be a uniform percentage of the
contract premiums for the benefits so that the present value, at the date of
issue of the policy, of all modified net premiums shall be equal to the sum of
the then present value of the benefits provided for by the policy and the
excess of (1) over (2), as follows:
(1) A net level
annual premium equal to the present value, at the date of issue, of the
benefits provided for after the first policy year, divided by the present
value, at the date of issue, of an annuity of one per annum payable on the
first and each subsequent anniversary of the policy on which a premium falls
due; provided, however, that the net level annual premium shall not
exceed the net level annual premium on the nineteen (19) year premium whole
life plan for insurance of the same amount at an age one year higher than the
age at issue of the policy; and
(2) A net one year
term premium for the benefits provided for in the first policy year.
(b) For any life
insurance policy issued on or after January 1, 1994 for which the contract
premium in the first policy year exceeds that of the second year and for which
no comparable additional benefit is provided in the first year for the excess,
and which provides an endowment benefit or a cash surrender value or a
combination thereof of them in an amount greater than the excess
premium, the reserve according to the commissioner's reserve valuation method
as of any policy anniversary occurring on or before the assumed ending date,
defined herein as the first policy anniversary on which the sum of any
endowment benefit and any cash surrender value then available is greater than
the excess premium, shall, except as otherwise provided in §
27-4.5-8, be the greater of the reserve as of the policy anniversary calculated
as described in subdivision subsection (a) and the reserve as of
the policy anniversary calculated as described in subdivision subsection
(a), but with: (1) the value defined in subdivision (a)(1) being reduced
by fifteen percent (15%) of the amount of the excess first year premium, (2)
all present values of benefits and premiums being determined without reference
to premiums or benefits provided for by the policy after the assumed ending
date, (3) the policy being assumed to mature on the date as an endowment, and
(4) the cash surrender value provided on the date being considered as an
endowment benefit. In making the above comparison contained in this
subsection the mortality and interest basis stated in §§ 27-4.5-4 and
27-4.5-4.1 shall be used.
(c) Reserves
according to the commissioner's reserve valuation method for: (1) life
insurance policies providing for a varying amount of insurance or requiring the
payment of varying premiums; (2) group annuity and pure endowment contracts
purchased under a retirement plan or plan of deferred compensation, established
or maintained by an employer including a partnership or sole proprietorship or
by an employee organization, or by both, other than a plan providing individual
retirement accounts or individual retirement annuities under 26 U.S.C. § 408;
(3) disability and accidental death benefits in all policies and contracts; and
(4) all other benefits, except life insurance and endowment benefits in life
insurance policies and benefits provided by all other annuity and pure
endowment contracts; shall be calculated by a method consistent with the
principles of the preceding subsections (a) and (b) of this
section.
SECTION 17. Section
27-45.7-15 of the General Laws in chapter 27-4.7 entitled "Risk-Based
Capital (RBC) for "Health Organizations Act" is hereby repealed.
27-4.7-15. Phase-In provision.
-- For RBC reports required to be filed by
health organizations with respect to the years 2000 and 2001, the following
requirements shall apply in lieu of the provisions of §§ 27-4.7-4, 27-4.7-5,
27-4.7-6, and 27-4.7-7. However, in no event shall any of the following
requirements preclude any action or limit any powers or duties otherwise
available to the insurance commissioner under any other state laws or
regulation:
(1) In the event
of a company action level event with respect to a domestic health organization,
the commissioner shall take no regulatory action under this chapter;
(2) In the event
of a regulatory action level event under § 27-4.7-5(a)(1), (2), or (3) with
respect to a domestic health organization, the commissioner shall take the
actions required under § 27-4.7-4 with respect to the health organization;
(3) In the event
of a regulatory action level event under § 27-4.7-5(a)(4), (5), (6), (7), (8),
or (9) or an authorized control level event, the commissioner shall take the
actions required under § 27-4.7-5 with respect to the health organization;
(4) In the event
of a mandatory control level event with respect to a health organization, the
commissioner shall take the actions required under § 27-4.7-6 with respect to the
health organization;
(5) In the event
the health organization's total adjusted capital at December 31, 2000, is less
than the product of twenty-five one hundredths (.25) and its authorized control
level RBC, the commissioner shall take the actions required under § 27-4.7-7
with respect to the health organization; and
(6) In
the event the health organization's total adjusted capital at December 31,
2001, is less than the product of one-half (.5) and its authorized control
level RBC, the commission shall take the actions required under § 27-4.7-7 with
respect to the health organization.
SECTION 18.
Section 40-18-2 of the General Laws in Chapter 40-18 entitled "Long-Term
Home Health Care - Alternative to Placement in a Skilled Nursing or
Intermediate Care Facility" is hereby amended to read as follows:
40-18-2. Definitions. -- As used in this chapter, the following words and phrases shall have the
following meanings unless the context otherwise requires:
(1) “Adult day care
service” means a comprehensive supervised program on a regularly scheduled
basis to adults with disabilities for a substantial part of the day in a single
physical location for a specified number of participants daily. The adult day
care center shall be reviewed and approved by the department of elderly affairs
or other appropriate state agency. Adult day care services may include, but are
not limited to, medical supervision, social and educational activities, snacks
and/or hot lunch, and transportation to and from the day care site. All adult
day care services must meet the conditions set forth in the rules and
regulations of the department of elderly affairs and must provide these
services as an alternative to twenty-four (24) hour long term institutional
care.
(2) “Case management
services” means the coordination of a plan of care and services provided at
home to persons with disabilities who are medically eligible for placement in a
skilled nursing facility or an intermediate care facility upon discharge from a
hospital. Such programs shall be provided in the person's home or in the home
of a responsible relative or other responsible adult, but not provided in a
skilled nursing facility and/or an intermediate care facility.
(3) “Certified home
health” means a home care services agency which is licensed by the state and
which is qualified to participate as home health agency under the provisions of
titles XVII and XIX of the federal Social Security Act, 42 U.S.C. § 1395x, and
shall provide, directly or through contract arrangement, a minimum of the
following services, which are of a preventative, therapeutic, rehabilitative
health guidance, and/or supportive nature to persons at home: skilled nursing
services, physical therapy, occupational therapy, speech therapy, and home
health aide services.
(4) “Director” means
the director of the department of human services.
(5) “Emergency
response system” means a twenty-four (24) hour per day monitoring service
designed for use by elderly adults in the community. The purpose of that system
is to provide contact between the elderly adult in the community and the
appropriate emergency response agency.
(6) “Government
funds” means funds provided under the provisions of chapter 8 of title 40.
(7) “Home care
services” means those services provided by (i) medicare Medicaid certified and
state licensed home health agency and (ii) state licensed home health
aide/homemaker agency.
(8) “Home health
aide/homemaker agency”, defined in § 23-17.7-2, means: (i) home health
aide services, at a minimum, includes assistance with personal hygiene,
dressing, feeding, and household tasks essential to the patient's health and
(ii) homemaker services, at a minimum, includes light work or household tasks
such as cooking, cleaning, shopping, and laundry.
(9)
“Hospital” means a hospital as defined in chapter 17 of title 23.
SECTION 19. Section
42-66.4-2 of the General Laws in Chapter 42-66.4 entitled "Long-Term
Health Care - Removal From A Skilled Nursing and/or Intermediate Care
Facility" is hereby amended to read as follows:
42-66.4-2. Definitions. -- As used in this chapter, unless the context otherwise requires:
(1) “Adult day care
services” means a comprehensive supervised program on a regularly scheduled
basis to adults with disabilities for a substantial part of the day in a single
physical location for a specified number of participants daily. The adult day
care center shall be reviewed and approved by the department of elderly affairs
or other appropriate state agency. Adult day care services may include, but are
not limited to, medical supervision, social and educational activities, snacks
and/or hot lunch, and transportation to and from the day care site. All adult
day care services must meet the conditions set forth in the rules and
regulations of the department of elderly affairs and must provide these
services as an alternative to twenty-four (24) hour long term institutional
care.
(2) “Case management
services” means the coordination of a plan of care and services provided at
home to persons with disabilities who are medically eligible for placement in a
skilled nursing facility or an intermediate care facility. These programs shall
be provided in the person's home or in the home of a responsible relative or
other responsible adult, but not provided in a skilled nursing facility and/or
an intermediate care facility.
(3) “Certified home
health” means a home care services agency which is licensed by the state and
which is qualified to participate as a home health agency under the provisions
of 42 U.S.C. § 1395 et seq. and § 1396 et seq., and shall provide, directly or
through contract arrangement, a minimum of the following services which are of
a preventative, therapeutic, rehabilitative health guidance and/or supportive
nature to persons at home: skilled nursing services, physical therapy,
occupational therapy, speech therapy, and home health aide services.
(4) “Director” means
the director of the department of elderly affairs unless the context clearly
requires a different meaning.
(5) “Emergency
response system” means a twenty-four (24) hour per day monitoring service
designed for use by elderly adults in the community. The purpose of the system
is to provide contact between the elderly adult in the community and the
appropriate emergency response agency.
(6)
“Government funds” means funds provided under the provisions of chapter 8 of
title 40.
(7) “Home care
services” means those services provided by (a) medicare Medicaid certified and
state licensed home health agency and (b) state licensed home health
aide/homemaker agency.
(8) “Home health
aide/homemaker agency”, defined in § 23-17.7-2, means:
(i) Home health aide
services, at a minimum, includes assistance with personal hygiene, dressing,
feeding, and household tasks essential to the patient's health; and
(ii) Homemaker
services, at a minimum, includes light work or household tasks such as cooking,
cleaning, shopping, and laundry.
(9) “Skilled nursing
facility”and “intermediate care facility” shall have the same definition as set
forth in chapter 17 of title 23.
SECTION 20.
Section 17-4-2 of the General Laws in Chapter 17-4 entitled "Federal
Elective Officers" is hereby amended to read as follows:
17-4-2. Territory
in first congressional district -- The first district consists of the territory embraced within the towns of
Middletown, Portsmouth, Tiverton, Little Compton, Jamestown, Barrington,
Warren, Bristol, Cumberland, Smithfield, North Smithfield, North Providence,
Lincoln, and Burrillville and the cities of Newport, East Providence,
Pawtucket, Central Falls, Woonsocket, and that territory in the city of
Providence embraced within a line beginning at the point where the center line
of Smith Street crosses the Providence-North Providence boundary line, thence
southeasterly on Smith Street to Eaton Street, thence easterly on Eaton Street
to Douglas Avenue, thence southeasterly on Douglas Avenue to the intersection
of I-95, thence southerly on I-95 to the intersection of Smith Street, thence
easterly on Smith Street to the Moshassuck River, thence southerly through the
Moshassuck River to a point on Memorial Square where the world war memorial
monument now or lately stood, thence southeasterly through the Providence River
to the Seekonk River, thence easterly and northerly through the Seekonk River
along the Providence-East Providence boundary line in the Seekonk River to the
Providence-Pawtucket boundary line, thence westerly, northwesterly, and
southwesterly along the Providence-Pawtucket boundary line and the
Providence-North Providence boundary line to the point and place of beginning.
Territory in first and
second congressional districts. - First district: The first congressional district shall consist of all of
that part of the towns of: Burrillville; North Smithfield; Smithfield; Lincoln;
Cumberland; North Providence; Barrington; Warren; Bristol; Portsmouth;
Tiverton; Little Compton; Middletown; and Jamestown and the cities of:
Woonsocket; Central Falls; Pawtucket; East Providence; and Newport.
The first congressional district shall also consist of all of that part
of the city of Providence bounded by a line beginning at the intersection of
Longwood avenue and the Providence-North Providence boundary line; thence
northeasterly and southeasterly along the Providence-North Providence boundary
line to the Providence-Pawtucket boundary line; thence southeasterly along the
Providence-Pawtucket boundary line to the Providence-East Providence boundary
line; thence southwesterly along the Providence-East Providence boundary line
to the Providence River; thence northwesterly through the Providence River to
Steeple street; thence northeasterly along Steeple street to North Main street;
thence northerly on North Main street to Hewes street; thence southwesterly on
Hewes street to Stevens street; thence northwesterly on Stevens street to
Charles street; thence continuing northwesterly on Charles street to interstate
route 95; thence southwesterly on interstate route 95 to the former New York
New Haven and Hartford Railroad (hereinafter simply "New York New Haven
and Hartford Railroad"); thence southwesterly on New York New Haven and
Hartford Railroad to a line extended westerly to Francis street; thence
westerly along that line (boundary line between census blocks 440070008001022
and 440070008001021) to a line extended southwesterly and westerly to Promenade
street; thence southwesterly and westerly along that line (boundary line
between census blocks 440070008001025 and 440070008001026) thence westerly to
Promenade street; thence continuing westerly on Promenade street to interstate
route 95; thence southerly on interstate route 95 to Providence Place; thence
westerly on Providence Place to Harris avenue; continuing westerly on Harris
avenue to Dean street; thence northerly on Dean street to Pleasant Valley
parkway; thence northwesterly on Pleasant Valley parkway to Raymond street;
thence continuing northwesterly on Chalkstone avenue; thence westerly on
Chalkstone avenue to Samoset avenue; thence northerly on Samoset avenue to
Alden street; thence westerly on Alden street to Victoria street; thence
northerly on Victoria street to Galileo avenue; thence northeasterly on Galileo
avenue to Standish avenue; thence northerly on Standish avenue to Metropolitan
road; thence westerly on Metropolitan road to Mount Pleasant avenue; thence
northerly on Mount Pleasant avenue to Old road; thence easterly on Old road to
Smith street; thence southeasterly on Smith street to Academy avenue; thence
northerly on Academy avenue to Walton street; thence westerly on Walton street
to Enfield avenue; thence northerly on Enfield avenue to Isabella avenue;
thence westerly on Isabella avenue to Modena avenue; thence southerly on Modena
avenue to Lotus place; thence westerly on Lotus place to Gentian avenue; thence
northerly on Gentian avenue to Isabella avenue; thence westerly on Isabella
avenue to Longwood avenue; thence northerly on Longwood avenue to the point of
origin.
Second district: The second congressional district shall consist of all
of the towns of: Glocester; Foster; Scituate; Johnston; Coventry; West Warwick;
West Greenwich; East Greenwich; Exeter; North Kingstown; Narragansett; South
Kingstown; Charlestown; Richmond; Hopkinton; and Westerly and the cities of:
Cranston and Warwick.
The second congressional district shall also consist of all of that part
of the city of Providence not included in the first congressional district.
SECTION 21. Section 17-4-3 of the General Laws in Chapter 17-4 entitled
"Federal Elective Officers" is hereby repealed.
17-4-3. Territory in second congressional district. -- The second congressional district consists of
all of the territory within the state not embraced within the first
congressional district.
SECTION 22. Sections 27-5-3.4 and 27-5-15 of the General Laws in Chapter 27-5
entitled "Fire Insurance Policies and Reserves" are hereby amended to
read as follows:
27-5-3.4. Cancellation or nonrenewal of standard fire insurance
policy. -- (a) A company issuing any policy of insurance
which is subject to cancellation or nonrenewal by the company shall effect
cancellation or nonrenewal by serving the notice thereof of it
provided by the policy. That notice shall be delivered in hand to the named
insured, or be left at his or her last address as shown by the company's
records, or, if its records contain no last address, at his or her last
business, residence, or other address known to the company, or be forwarded to
that address by certified mail, return receipt requested. A return receipt from
the United States postal service showing receipt of the notice at the address
of the insured stated in the policy shall be sufficient proof of notice. If the
company does not receive a return receipt from the United States postal service
within ten (10) days, then the company shall forward the notice by first class
mail and maintain proof of mailing of the notice to the insured in the ordinary
course of the insurer's business, and this proof of mailing shall be sufficient
proof of notice.
(b) If a policy is made payable to a
mortgagee or any person other than the named insured, notice shall be given as
provided in subsection (a) to the payee as well as and to the
named insured.
(c) Policies
subject to cancellation by the named insured upon giving notice to the company
may be cancelled by serving notice in the manner herein provided in
subsection (a) of this section upon the company or upon its insurance
producer who issued the policy.
27-5-15. Power to create
guaranty surplus and special reserve funds. -- Any insurance company
organized under the laws of this state authorized to transact a fire insurance
business may create the funds herein provided for in §§ 27-5-16 -
27-5-31, to be known and designated as the guaranty surplus fund and the
special reserve fund, and may avail itself of the provisions of this section
and §§ 27-5-16 - 27-5-31, upon complying with the requirements thereof of
those sections.
SECTION 23. Sections 27-7.1-12 and 27-7.1-22 of the General Laws in
Chapter 27-7.1 entitled "Workers' Compensation Insurance" are hereby
repealed.
27-7.1-12. Procedural
rules. -- (a) Subject to the applicable requirements of
the Administrative Procedures Act, chapter 35 of title 42, the director may
adopt rules and regulations establishing procedures for:
(1) The
administration of this chapter, including, but not limited to, procedures
governing submission of petitions for intervenor status, prefiling of testimony
and exhibits, information requests, subpoena prehearing conferences, and the
conduct of hearings;
(2) Use by
insurers to record and report to the director their rates;
(3) Use by
insurers in the recording and reporting of loss and expense experience, in
order that the experience of all insurers may be made available at least
annually in the form and detail necessary to aid in determining whether rating
systems comply with the standards set forth in § 27-7.1-4. The director may
designate advisory organizations or other agencies to assist in gathering the
experience and making compilations of it, and the compilations shall be public records;
and
(4) The
interchange of data necessary for the application of rating plans.
(b) In order to
further the administration of this chapter, the director and every insurer and
advisory organization may exchange information and experience data with insurance
supervisory officials, insurers, and advisory organizations in other states and
may consult with them with respect to the application of rating systems.
(c) Cooperation
among advisory organizations or among advisory organizations and insurers in ratemaking
or in other matters within the scope of this chapter is authorized, but the
filings resulting from that cooperation are subject to all the provisions of
this chapter. The director may review these cooperative activities and
practices and, if after hearing, any activity or practice is found to violate
the provisions of this chapter, a written order may be issued specifying that
the activity or practice violates the provisions of this chapter and requiring
the discontinuance of the activity.
27-7.1-22. "Fresh start" provision. -- (a) In order to restore a healthy voluntary workers' compensation
insurance market in the state of Rhode Island, and to avert the departure of
insurers presently providing workers' compensation insurance in the state, the department
shall provide for recovery of ninety percent (90%) of any deficits for the
policy period beginning the first day of the month beginning after passage of
this legislation through December 31, 1992, and seventy-five percent (75%) of
any deficits for the policy year January 1, 1993, through December 31, 1993,
pursuant to subsections (b) through (h).
(b) The term
"deficits" shall mean the amount by which incurred losses and
expenses associated with the entire Rhode Island workers' compensation insurance
market exceeds premiums collected from risks in that market and investment
income allocable to those premiums. Any deficits for the covered portion of
policy year 1993 shall be initially calculated as of June 30, 1994, and
annually reviewed as of June 30 of each of the subsequent four (4) years.
(c) Deficit
calculations shall be made by an independent actuarial firm. Selection of this
firm shall be agreed to by the department, the state compensation insurance
fund, and an organization representing licensed workers' compensation insurers.
Compliance with NCCI pool servicing carrier standards shall be reviewed by the
department and shall be considered by the actuary in determining the extent of
any deficit.
(d) Assessments
for 1992 deficits shall apply to all policies issued on or after January 1,
1995, and assessments for 1993 deficits shall apply to all policies issued on
or after January 1, 1996. Deficits shall be assessed against current policy
year insureds and collected as a surcharge on current policy year premiums.
(e) (1) Any
deficits determined as of June 30, 1994, shall be amortized over a five (5)
year period, with twenty percent (20%) of the deficits due when policies for
policy year 1995 are issued.
(2) Any 1992
deficits determined as of June 30, 1995, shall be amortized over a four (4)
year period, with twenty-five percent (25%) of the deficits due when policies
for policy year 1996 are issued. Subsequent 1992 deficit determination shall be
made by each June 30 amortized over the remaining period, with a final deficit
determination to be made by June 1, 1998.
(3) Any 1993
deficits determined as of June 30, 1995, shall be amortized over a five (5)
year period, with twenty percent (20%) of the deficits due when policies for
policy year 1996 are issued. Any 1993 deficits determined as of June 30, 1995,
shall be amortized over a four (4) year period, with twenty-five percent (25%)
of the deficits due when policies for policy year 1997 are issued. Subsequent
1993 deficit determinations shall be made by each June 30 and amortized over
the remaining period, with a final deficit determination to be made by June 1,
1999.
(f) In no instance
shall the deficit surcharge for either policy year 1992 or 1993 exceed ten
percent (10%) of the policyholder's current policy year written premium, nor
shall the combined surcharge for 1992 and 1993 exceed ten percent (10%) of the
policyholder's current policy year written premium. Any outstanding balance as
a result of this limitation shall be assessable at ten percent (10%) of the
current policy year written premium per year until all of those obligations are
fulfilled.
(g) The department
shall annually notify the state compensation insurance fund and each insurance
carrier writing workers' compensation insurance in Rhode Island of the amount
of any deficit surcharge, as established by the independent actuarial firm, to
be charged against policy holders.
(h) The state
compensation insurance fund and each insurance carrier writing workers'
compensation insurance shall collect deficit surcharges under this section at
the time the policy is issued. After collection, those surcharges shall be
transferred to an interest bearing custodial account administered by the
director of the department of labor, for the exclusive benefit of the workers'
compensation insurance carriers. Monies collected and invested in the account
and interest earned thereon shall be distributed only to worker's compensation
carriers in accordance with a schedule promulgated by the department, based on
the report of the independent actuarial firm. The monies shall be and remain
the property of the workers' compensation carriers and shall not constitute
public funds.
SECTION 24.
Sections 27-7.2-9.1, 27-7.2-20.1 and 27-7.2-20.2 of the General Laws in Chapter
27-7.2 entitled "Workers' Compensation Insurance Fund" are hereby
amended to read as follows:
27-7.2-9.1.
Insurance coverage program. -- (a) Provision of workers'
compensation coverage. Subject to the limitations set forth in this
chapter, the fund shall provide workers' compensation insurance against
liabilities arising under title 28 for any employer that tenders the necessary
premium.
(b) Applications; provision of coverage.
(1) Policy applications. Applicants may
apply for coverage by the fund in good faith, either directly or through an
insurance producer licensed by the state of Rhode Island to procure workers'
compensation insurance according to rules adopted by the board under §
27-7.2-17.
(2) Denial, cancellation, and nonrenewal. The
nonpayment of premium for current or prior policies issued by the fund to the
applicant, or to another entity for which the fund deems the applicant to be a
successor in interest, may be a basis for the fund to deny, nonrenew not
renew or terminate coverage. The failure or refusal by an applicant or
insured to fully and accurately disclose to the fund information concerning the
applicant's or insured's ownership, change of ownership, operations, or
payroll, including allocation of payroll among state and federal compensation
programs, classification of payroll, and any other information determined by
the fund to be important in determining proper rates shall be sufficient
grounds for the fund to deny an application or to nonrenew not renew or
cancel an existing policy or to assess a premium surcharge against the insured
pursuant to subsection (d). The failure or refusal by any insured or applicant
to comply with the fund's safety requirements or to permit premises inspections
to the sole satisfaction of the fund shall be sufficient grounds for having its
workers' compensation insurance coverage surcharged, nonrenewed not
renewed, or cancelled, or an application for the coverage denied.
(3) Appeal to director. Any determination of
the fund with respect to the denial, cancellation, or nonrenewal of any
workers' compensation insurance policy against liabilities arising under title
28, with the exception of cancellation for nonpayment of premium, may be
appealed to the director of the department of business regulation, in
writing, within thirty (30) days of notice of this action. If the director thereupon
determines that the fund has unreasonably denied, cancelled, or failed to renew
any workers' compensation insurance policy, the fund shall in good faith
reconsider issuing, reinstating, or renewing the workers' compensation
insurance policy. If the fund has not issued, reinstated, or renewed the
workers' compensation insurance policy within thirty (30) days of a
determination of the director, the applicant or insured may appeal the denial,
cancellation, or failure to renew by the fund to the superior court for
Providence County.
(c) Exemptions.
(1) Except as otherwise
provided in subsection (d), the fund shall be subject to rate regulation under
chapter 7.1 of this title.
(2) Notwithstanding
the provisions of this section foregoing, if, at any time, the
director finds that a rate or filing of the fund is unjust, unreasonable,
inadequate, excessive, or unfairly discriminatory, he or she shall, after a
hearing held upon not less than ten (10) days written notice, specifying the
matters to be considered at that hearing, issue an order specifying in what
respects he or she finds that the rate or filing is unjust, unreasonable,
inadequate, excessive, or unfairly discriminatory and stating when within a
reasonable period thereafter after this the rate shall no longer
be used or the filing shall be deemed no longer effective. That order shall not
affect any contract or policy made or issued prior to the expiration of the
period set forth in the order. If, however, the director finds that an
unfair discrimination exists in the application of a rate or filing to an
individual applicant or insured, the director may, after a hearing held on like
similar notice to the fund, issue an order that the discrimination be
removed.
(d) Rate regulation.
(1) When a filing is
not accompanied by the information upon which the fund supports that filing,
and the director does not have sufficient information to determine whether the
filing meets the requirements of applicable law, the director may require the
fund to furnish the information upon which it supports the filing. The
information furnished in support of a filing may include: (i) the
experience or judgment of the fund, (ii) its interpretation of any statistical
data it relies upon, (iii) the experience of other insurers or rating
organizations, or (iv) any other relevant factors.
(2) Notwithstanding any law to
the contrary, the fund and any workers' compensation insurance policyholder may
mutually consent to modify the rates for that policyholder's workers'
compensation insurance policy, provided the fund files notice of the
modification with the director of the department of business regulation.
(3) Notwithstanding any law to
the contrary, the fund may establish and apply a premium surcharge protocol.
The protocol shall provide for higher premium and surcharge payments by insureds
who present higher than normal risks within a class, including the ability of
the fund to assess from time to time a premium surcharge of up to three (3)
times its otherwise applicable premium rate, as it deems appropriate to
further the public purposes set forth herein in this chapter. The
surcharge may be payable, at the option of the fund, upon assessment, over the
policy year, or upon renewal. Any premium surcharge assessed by the fund may be
appealed to the director of the department of business regulation within twenty
(20) days of notice thereof of the surcharge, and the director may modify
or rescind the surcharge if the director determines that the surcharge is
unjust, unreasonable, inadequate, excessive or unfairly discriminatory.
(4)
Notwithstanding any other provisions of law, immediately upon May 18, 1992, the
fund may issue workers' compensation insurance policies at an initial rate not
in excess of the rates then in effect for residual market workers' compensation
insurance coverage offered by any other insurers within the state of Rhode
Island, subject to the discretion of the fund to apply discounts and surcharge
multipliers of up to three (3) times the premiums that would otherwise be
applicable under the rates, with the premium surcharge to be payable as
provided in subdivision (d)(4). The fund may continue to issue workers' compensation
insurance coverage at the initial rates until the effectiveness of any revised
rates filed pursuant to subdivision (d)(1).
27-7.2-20.1. Workers' compensation capital
assessment. -- (a) In order to establish the capital
reserves and surplus to allow the fund to effect the assumption of residual
risk market in fulfillment of the public purposes as set forth above in
this chapter, a workers' compensation capital assessment shall be assessed
and collected by the director of the department of labor and training against
each insurance company deemed by the director of the department of business
regulation to have been licensed as of January 1, 1991, to write workers'
compensation insurance in Rhode Island. The assessment shall be payable
quarterly and due within fifteen (15) days following the close of each calendar
quarter or, at the discretion of the director of the department of labor and
training, on an annual basis on or before July first of each year. The director
of the department of labor and training shall have the power to institute suit
to collect any assessment under this section to the same extent as provided in
§ 28-37-28.
(b) The director of
the department of labor and training shall collect all of the capital assessment
amounts in a separate restricted purpose account and shall promptly transfer
all the amounts to the fund upon receipt and the amounts shall become the
property of the fund pursuant to § 27-7.2-14 for capital reserve and surplus
purposes in recognition of the fund's role as carrier of last resort. During
the transition period, the assessment for this party shall equal three percent
(3%) of gross premiums received from workers' compensation insurance or
employer's liability insurance written or renewed on risks within the state or
subject to the jurisdiction of the state, or any other level of gross premiums
that the director of the department of business regulation deems appropriate to
ensure both the solvency of the fund and the fund's ability to establish a
surplus reasonably adequate to allow it to complete the assumption of the
residual risk market in furtherance of the public purposes stated above in
this chapter. For the purpose of this chapter, "gross premiums"
shall be calculated for insurance companies in the same manner as provided in §
28-37-14 for the applicable period. From and after the transition period, the
director of the department of business regulation shall periodically determine
the rate of the assessment at levels adequate to allow the fund to service the
residual risk market and satisfy the reserve and surplus requirements of §
27-7.2-20.2.
(c) Each insurance
company may pass through the entire capital assessment amount to each of its
policyholders on a pro rata basis.
(d) In the event that any insurance company deemed by the director of the
department of business regulation to have been licensed on January 1, 1991, to
write workers' compensation insurance discontinues the issuance of workers'
compensation insurance policies in Rhode Island prior to December 31, 1994,
that company shall be and remain obligated to pay the capital assessment
surcharge through December 31, 1994, calculated on the basis of the average
voluntary and residual risk gross premiums received or the average voluntary
and residual risk gross losses paid in the thirty six (36) month period prior
to its departure from the Rhode Island market.
(d) (e) The fund shall pay an annual fee to the director of the department of
labor and training in the amount of two-tenths of one percent (.2%) of the
earned premiums of the fund for the prior year in recognition of the continuing
obligations of the department of labor and training under § 27-7.2-20.1 subsections
(a) and (b) hereof of this section.
27-7.2-20.2. Reserves -
Premium to surplus ratio - Insolvency fund. -- (a) From and after
January 1, 1995, The fund shall maintain a ratio of premiums on policies
written to surplus of not more than three (3) to one, or any greater or lesser
ratio that the director of the department of business regulation deems
appropriate. In determining the ratio, the director may at all times consider
the net present value of future capital assessment amounts as current surplus.
To facilitate the ongoing oversight of the fund, the fund shall submit to the
department of business regulation quarterly and annual statements in the format
and scope specified in § 27-12-2.
(b) The
fund shall not participate in, or be subject to, the insurers' insolvency fund
established under § 27-34-6.
(c) In the event of
the liquidation of the fund pursuant to the Insurers' Rehabilitation and
Liquidation Act, R.I. Gen. Laws § 27-14.3 chapter 14.3 of this title,
the fund's policy holders, in their capacity as owners of the fund, shall have
no distributive claims under § 27-14.3-46(8) to the liquidation estate of the
fund and, upon satisfaction of any other class 1 through class 7 claims under §
27-14.3-46, the insurance commissioner, as receiver, shall distribute the
residual, if any, of the fund's liquidation estate to the director of the Rhode
Island department of labor and training; provided, however, that in no
event shall the foregoing affect the validity or priority of: (i)
(1) any claims arising from and within the coverage of any policies of
the fund; or (ii) (2) claims of the director of the Rhode Island
department of labor and training to repayment of the term note of the fund
issued pursuant to § 27-7.2-19.
SECTION 25. Section
27-9-51 of the General Laws in chapter 27-9 entitled "Casualty Insurance Rating"
is hereby amended to read as follows:
27-9-51. Excess
profits for workers' compensation and employer's liability insurance
prohibited. -- (a) Each
insurance group shall file with the department prior to July 1 of each year, on
a form prescribed by the department, the following data for workers'
compensation and employers' liability insurance:
(1) The calendar year
earned premium;
(2) Accident year
incurred losses and loss adjustment expenses;
(3) The
administrative and selling expenses incurred in Rhode Island or allocated to
Rhode Island for the calendar year; and
(4) Policyholder
dividends applicable to the calendar year.
(b) (1) Excess profit
has been realized if the underwriting gain is greater than the anticipated
underwriting profit plus five percent (5%) of earned premiums for the three (3)
most recent calendar years;
(2) As used in this
section with respect to any three (3) year period, "anticipated
underwriting profit" means the sum of the dollar amounts obtained by
multiplying, for each rate filing of the insurance group in effect during that
period, the earned premiums applicable to the rate filing during that period by
the percentage factor included in the rate filing for profit and contingencies,
the percentage factor having been determined with due recognition to investment
income from funds generated by Rhode Island business. Separate calculations
need not be made for consecutive rate filings containing the same percentage
factor for profits and contingencies.
(c) Each insurance group
shall also file a schedule of Rhode Island loss and loss adjustment experience
for each of the three (3) most recent accident years. The incurred losses and
loss adjustment expenses shall be valued as of December 31 of the accident
year, developed to an ultimate basis, and two (2) twelve (12) month intervals thereafter
after this, each developed to an ultimate basis so that a total of three
(3) evaluations will be provided for each accident year. The first year to
be so reported shall be accident year 1982, so that the reporting of three (3)
accident years will not take place until accident years 1983 and 1984 have
become available. For reporting purposes unrelated to determining excessive
profits, the loss and loss adjustment experience of each accident year shall
continue to be reported until each accident year has been reported at eight (8)
stages of development.
(d) Each insurance
group's underwriting gain or loss for each calendar accident year shall be
computed as follows: The sum of the accident-year incurred losses and loss
adjustment expenses as of December 31 of the year, developed to an ultimate
basis, plus the administrative and selling expenses incurred in the calendar
year, plus policyholder dividends applicable to the calendar year, shall be
subtracted from the calendar year earned premium to determine the underwriting
gain or loss.
(e) For the three (3)
most recent calendar-accident years, the underwriting gain or loss shall be
compared to the anticipated underwriting profit.
(f) If the insurance
group has realized an excess profit, the department shall order a return of the
excess amounts after affording the insurance group an opportunity for a hearing
and otherwise complying with the provisions of the Administrative
Procedures Act, chapter 35 of title 42. The excess amounts shall be refunded in
all instances unless the insurance group affirmatively demonstrates to the
department that the refund of the excess amounts will render the insurance
group insolvent under the provisions of this title.
(g) Any excess profit
of an insurance group offering workers' compensation or employers' liability
insurance shall be returned to policyholders in the form of a cash refund or be
returned to policyholders in the form of a credit toward the future purchase of
insurance. The excess amount shall be refunded on a pro rata basis in relation
to the final compilation year earned premiums to the workers' compensation
policyholders of record of the insurance group on December 31 of the final
compilation year.
(h) (1) Cash refunds
to policyholders may be rounded to the nearest dollar;
(2) Data in required
reports to the department may be rounded to the nearest dollar;
(3) Rounding, if
elected by the insurance group, shall be applied consistently.
(i) (1) Refunds shall
be completed in one of the following ways:
(i) If the insurance
group elects to make a cash refund, the refund shall be completed within sixty
(60) days of the entry of a final order indicating that excess profits have
been realized; or
(ii) If the insurance
group elects to make refunds in the form of a credit to renewal policies, the
credits shall be applied to policy renewal premium notices which are forwarded
to insureds more than sixty (60) calendar days after the entry of a final
order indicating that excess profits have been realized. If an insurance group
has made this election, but an insured thereafter after this cancels
his or her policy or otherwise allows his or her policy to terminate,
the insurance group shall make a cash refund not later than sixty (60) days
after the termination of the coverage;
(2) Upon completion
of the renewal credits or refund payments, the insurance group shall
immediately certify to the department that the refunds have been made.
(j) Any refund or
renewal credit made pursuant to this section, for the purposes of reporting under this section for
subsequent years,. shall be treated as a policyholder
dividend applicable to the year in which it is incurred. for the
purposes of reporting under this section for subsequent years.
SECTION 26.
Section 27-10.1-4 of the General Laws in Chapter 27-10.1 entitled "Motor
Vehicle Damage Appraisers" is hereby repealed.
27-10.1-4. Applicability
of chapter to present appraisers. -- Persons
engaged in the performance of motor vehicle damage appraisal as of May 15,
1973, shall be entitled, upon proof thereof and payment of fees, to be issued a
license without examination provided they file an application therefor prior to
November 1, 1973.
SECTION 27. Section 27-11.1-6 of the General Laws in chapter 27-11.1
entitled "Investments by Domestic Insurance Companies" is hereby
amended to read as follows:
27-11.1-6. Applicability. -- This chapter shall apply to all domestic companies issued a certificate
of compliance subsequent to May 8, 1984. Those domestic companies currently
in possession of a certificate of compliance shall have three (3) years from
May 8, 1984, to be in conformance with the provisions of this chapter.
SECTION 28. Section 27-12-4 of the General Laws in Chapter 27-12 entitled
"Annual Reports of Insurance Companies" is hereby amended to read as
follows:
27-12-4. Penalty for
refusal to answer interrogatories.
-- Every insurance producer who
shall refuse or neglect to answer any interrogatories required under § 27-12-3
for the space of thirty (30) days, and continues to act as an insurance
producer, shall be liable to the penalty prescribed in § 27-2.3-12
[repealed] 27-2.4-14.
SECTION 29. Section 27-13.1-3 of the General Laws in Chapter 27-13.1
entitled "Examinations" is hereby amended to read as follows:
27-13.1-3.
Authority, scope, and scheduling of examinations. -- (a) The director or any of his or her
examiners may conduct an examination under this chapter of any company as often
as the director in his or her sole discretion deems appropriate, but shall, at
a minimum, conduct an examination of every insurer licensed in this state not
less frequently than once every five (5) years. In scheduling and determining
the nature, scope, and frequency of the examinations, the director shall
consider such matters as the results of financial statement analyses and
ratios, changes in management or ownership, actuarial opinions, reports of
independent certified public accountants, and other criteria as set forth in
the Examiners' Handbook adopted by the National Association of Insurance
Commissioners and in effect when the director exercises discretion under this
section.
(b) For the
purposes of completing an examination of any company under this chapter, the
director may examine or investigate any person, or the business of any person,
in so far as the examination or investigation is, in the sole discretion of the
director, necessary or material to the examination of the company.
(c) In lieu of an
examination under this chapter of any foreign or alien insurer licensed in this
state, the director may accept an examination report on the company as prepared
by the insurance department for the company's state of domicile or port of
entry state until January 1, 1994. Thereafter, the reports may only be
accepted if:
(1) (i) The insurance department was at
the time of the examination accredited under the National Association of
Insurance Commissioners' financial regulation standards and accreditation
program; or
(2) (ii) The examination is performed
under the supervision of an accredited insurance department or with the
participation of one or more examiners who are employed by an accredited state
insurance department and who, after a review of the examination work papers and
report, state under oath that the examination was performed in a manner
consistent with the standards and procedures required by their insurance
department.
SECTION 30. Section
27-14.3-7 of the General Laws in Chapter 27-14.3 entitled "Insurers'
Rehabilitation and Liquidation Act" is hereby repealed.
27-14.3-7. Effective
date of chapter and inapplicability to pending delinquency proceedings. -- Every proceeding up to the present time commenced under the laws in
effect before the enactment of this chapter shall not be deemed to have
commenced under this chapter for the purpose of conducting the proceeding from
this time forth. The provisions of this chapter shall apply only to those
delinquency proceedings commenced after July 23, 1993. Nothing contained in
this chapter shall be construed to create a legal right that is otherwise
nonexistent under existing law, and nothing in this chapter shall be construed
to deprive a person of any prior existing legal right. Notwithstanding any
other provisions of law, for those delinquency proceedings commenced after July
23, 1993, this chapter shall supersede, repeal, and replace all provisions of
law pertaining to insurance insolvencies and receiverships contained in
chapters 1 and 14.
SECTION 31. Sections 27-16-1.2 and 27-16-5 of the General Laws in Chapter
27-16 entitled "Unauthorized Insurance Business" are hereby amended
to read as follows:
27-16-1.2.
Certificate of compliance - Exceptions. -- (a) It shall be unlawful for any insurer to transact insurance business in
this state as set forth in subsection (b) of this section without a
certificate of compliance from the commissioner; provided, however,
that this section shall not apply to:
(1) The lawful
transaction of surplus lines insurance;
(2) The lawful
transaction of reinsurance by insurers;
(3) Transactions in
this state involving a policy lawfully solicited, written, and delivered
outside of this state covering only subjects of insurance not resident,
located, or expressly to be performed in this state at the time of issuance,
and which transactions are subsequent to the issuance of the policy;
(4) Attorneys acting
in the ordinary relation of attorney and client in the adjustment of claims or
losses;
(5) Transactions in
this state involving group life and group sickness and accident or blanket
sickness and accident insurance or group annuities where the master policy of
the groups was lawfully issued and delivered in and pursuant to the laws of a
state in which the insurer was authorized to do an insurance business, to a
group organized for purposes other than the procurement of insurance, and where
the policyholder is domiciled or otherwise has a bona fide situs;
(6) Transactions in this
state involving any policy of insurance or annuity contract issued prior to May
15, 1973;
(7) Transactions in
this state relative to a policy issued outside of this state involving
insurance on vessels, craft, or hulls, cargoes, marine protection, and
indemnity or other risk, including strikes and war risks commonly insured under
ocean or wet marine forms of policy;
(8) Transactions in
this state involving contracts of insurance issued to one or more industrial
insureds. An industrial insured is defined as an insured:
(i) Which procures the insurance of any risk by the use of the services of a full-time employee acting as insurance manager or buyer or the services of a regularly and continuously retained qualified insurance consultant;
(ii) Whose aggregate
annual premiums on all risks excluding workers' compensation and group total at
least twenty-five thousand dollars ($25,000); and
(iii) Which has at
least twenty-five (25) full-time employees; and
(9) (i)
Transactions in this state involving life insurance, health insurance, or
annuities provided to educational or religious or charitable institutions
organized and operated without profit to any private shareholder or individual
for the benefit of the institutions and individuals engaged in the service of
the institutions;
(ii) But This
exemption shall be conditional upon the company complying with the following
requirements:
(A) Payment of an
annual registration fee of five hundred dollars ($500);
(B) Filing a copy of any
policy or contract form, including annuities issued to any Rhode Island
residents with the commissioner of insurance. Effective January 1, 1997,
Each policy and contract form, including annuities, shall contain (on its front
and declaration page) in at least twelve (12) point type the following notice:
NOTICE TO RHODE ISLAND RESIDENTS
THIS CONTRACT HAS BEEN PLACED WITH AN INSURER
NOT LICENSED TO DO BUSINESS IN THE STATE OF RHODE ISLAND BUT ELIGIBLE AS AN
UNLICENSED REGISTERED INSURER PURSUANT TO THE UNAUTHORIZED BUSINESS STATUTE.
THE INSURER IS NOT A MEMBER OF THE RHODE ISLAND LIFE AND HEALTH GUARANTY
ASSOCIATION. SHOULD THE INSURER BECOME INSOLVENT, THE PROTECTION AND BENEFITS
OF THE ASSOCIATION ARE NOT AVAILABLE.
as well as and such any other financial material as that
may be requested by the commissioner; and further,
(D) Provided
The company agrees to appoint the commissioner of insurance, and his or her
successors in office, as its attorney to receive service of legal process
issued against it in Rhode Island. The appointment is to be irrevocable and to
bind the commissioner, and any successors in interest, and to remain in effect
as long as there is in force in this state any contract issued by the company
or any obligations arising therefrom from a contract.
(10) Rental car
companies and their employees principally engaged in the rental of motor
vehicles and which offer in connection with and incidental to the rental of
motor vehicles various optional insurance coverages during the term of
the rental, which shall be no more than forty-five (45) days.
(11) Transactions
that are insurance securitizations or reinsurance transactions entered into by
a protected cell of a protected cell company organized under the Protected Cell
Companies Act, chapter 64 of this title, as those terms are defined or
utilized in that act chapter.
(b) Any of the
following acts in this state effected by mail or otherwise, by or on behalf of
an insurer, is deemed to constitute the transaction of an insurance business in
this state. The venue of an act committed by mail is at the point where the
matter transmitted by mail is delivered and takes effect. Unless otherwise
indicated, the term "insurer," as used in this section,
includes all corporations, associations, partnerships, and individuals engaged
as principals in the business of insurance and also includes interinsurance
exchanges and mutual benefit societies:
(1) The making or
proposing to make, as an insurer an insurance contract;
(2) The making of or
proposing to make, as guarantor or surety, any contract of guaranty or
suretyship as a vocation and not merely incidental to any other legitimate
business or activity of the guarantor or surety;
(3) The taking or
receiving of any application for insurance;
(4) The receiving or
collection of any premium, commission, membership fees, assessments, dues, or
other consideration for an insurance or any part thereof of an insurance;
(5) The issuance or
delivery of contracts of insurance to residents of this state or to persons
authorized to do business in this state;
(6) Directly or
indirectly acting as an agent or insurance producer for or otherwise
representing or aiding on behalf of another any person or insurer in the
solicitation, negotiation, procurement, or effectuation of insurance or
renewals thereof of insurance or in the dissemination of
information as to coverage or rates, forwarding of applications, delivery of
policies or contracts, inspection of risks, fixing of rates or investigation or
adjustment of claims or losses, or in the transaction of matters subsequent to
effectuation of the contract and arising out of it, or in any other manner
representing or assisting a person or insurer in the transaction of insurance
with respect to subjects of insurance, resident, located, or to be performed in
this state. The provisions of this subsection shall not operate to prohibit
full-time salaried employees of a corporate insured from acting
in the capacity of an insurance manager or buyer in placing insurance in behalf
of the employer;
(7) The transaction
of any kind of insurance business specifically recognized as transacting an
insurance business within the meaning of the statutes relating to insurance; or
(8) The transacting
or proposing to transact any insurance business in substance equivalent to any
of the foregoing these in a manner designed to evade the
provisions of the statutes.
(c) The
failure of an insurer transacting insurance business in this state to obtain a
certificate of compliance shall not impair the validity of any act or contract
of the insurer and shall not prevent the insurer from defending any action at
law or suit in equity in any court of this state, but no insurer transacting
insurance business in this state without a certificate of authority shall be
permitted to maintain an action in any court of this state to enforce any
right, claim, or demand arising out of the transaction of insurance business
until the insurer shall have obtained a certificate of authority.
(d) In the event of the failure of any unauthorized insurer to pay any
claim or loss within the provisions of the insurance contract, any person who assisted
or in any manner aided directly or indirectly in the procurement of the
insurance contract shall be liable to the insured for the full amount of the
claim or loss in the manner provided by the provisions of the insurance
contract.
27-16-5. Acts constituting appointment of attorney to
receive process. -- Any of the following acts in this state,
effected by mail or otherwise, by an unauthorized foreign or alien insurer is
equivalent to and shall constitute an appointment by the insurer of the insurance
commissioner and the commissioner's successor or successors in office to be the
insurer's true and lawful attorney, upon whom may be served all lawful process
in any action, suit, or proceeding instituted by or on behalf of an insured or
beneficiary arising out of the contract of insurance, and the act shall be
signification of its agreement that service of process is of the same legal
force and validity as personal service of process in this state upon the
insurer: (1) the issuance or delivery of contracts of insurance or
reinsurance to residents of this state or to corporations authorized to do
business therein in this state; (2) the solicitation of
applications for the contracts; (3) the collection of premiums, membership
fees, assessments or other considerations for the contracts; or (4) any other
transaction of insurance business; is equivalent to and shall
constitute an appointment by the insurer of the insurance commissioner and the
commissioner's successor or successors in office to be the insurer's true and
lawful attorney, upon whom may be served all lawful process in any action,
suit, or proceeding instituted by or on behalf of an insured or beneficiary
arising out of the contract of insurance, and the act shall be signification of
its agreement that service of process is of the same legal force and validity
as personal service of process in this state upon the insurer.
SECTION 32. Sections 27-17-4, 27-17-12, 27-17-14 and 27-17-20 of the
General Laws in Chapter 27-17 entitled "Reciprocal Exchanges and
Interinsurers" are herby amended to read as follows:
27-17-4. Declaration filed by attorney - Requirements for
admission. -- The attorney
shall file with the insurance commissioner, herein referred to in
this chapter as the "commissioner", a declaration verified by the
oath of the attorney, or when the attorney is a corporation, by the oath of its
president or oaths of its treasurer and secretary setting forth:
(1) The name of the
attorney and the name or designation of the exchange under which the contracts
are to be issued, which name or designation shall not be so similar to
any other name or designation theretofore previously adopted by
an attorney or by any insurance organization in this state so as to confuse or
mislead;
(2) The kind or kinds
of insurance to be effected or exchanged;
(3) A copy of the
form of policy contract or agreement under or by which the insurance is to be
effected or exchanged and forms of application therefor for that
insurance;
(4) A certified copy
of the power of attorney or other authorization of the attorney under or by
which the attorney is to effect or exchange the insurance contracts;
(5) The location of
the office or offices from which the contracts or agreements are to be issued;
(6) (i) That, except
as to the kinds of insurance hereinafter specifically mentioned in
this subdivision, applications have been made for insurance upon at least
one hundred (100) separate risks, the liability to the exchange for premiums
due thereon on the risks shall aggregate not less than six
hundred thousand dollars ($600,000), represented by executed contracts or bona
fide applications to become concurrently effective, or, in lieu thereof of
this amount, the exchange or interinsurer is possessed of a surplus of not
less than three hundred thousand dollars ($300,000). The minimum amount of
surplus established as a requirement for the writing of other lines of
insurance as specified elsewhere in this section shall be in
addition to that required by the provisions of this subdivision;
(ii) In the case of
employers' liability or workers' compensation insurance, applications shall
have been made for indemnity upon at least one hundred (100) separate risks
having a total annual premium of not less than two million five hundred
thousand dollars ($2,500,000), as represented by executed contracts or bona
fide applications to become concurrently effective, or, in lieu thereof of
this amount, the exchange or interinsurer is possessed of a surplus of not
less than one hundred thousand dollars ($100,000);
(iii) In the case of
automobile insurance, applications shall have been made for insurance for at
least two hundred (200) separate risks, or for insurance the premiums due the
exchange thereon on the risks shall aggregate not less than two
hundred thousand dollars ($200,000) represented by executed contracts or bona
fide applications to become concurrently effective on any or all classes of
automobile insurance effected by the subscribers through the attorney, or, in
lieu thereof of this amount, the exchange or interinsurer is
possessed of a surplus of not less than one hundred thousand dollars
($100,000);
(iv) The surplus as
provided above in this subdivision shall not be acceptable
unless invested in securities of the United States of America, the state of
Rhode Island, or any other state of the United States or political subdivision thereof
of the state;
(7) That there shall
be maintained at the exchange, available for the payment of losses, assets
conforming to the requirements of §§ 27-17-7 - 27-17-12;
(8) A financial
statement under oath in the form prescribed by the commissioner;
(9) An instrument
authorizing the service of process as provided for in this chapter; and
(10) A certificate
from the proper official of the state where the principal office is maintained,
that the subscribers and the attorney have complied with all provisions of law
and are authorized in that state to transact the classes of business which are
sought to be transacted in this state.
27-17-12. Deficiencies in reserves. -- If at any time the amounts on hand are less than the foregoing
requirements specified in this chapter, the subscribers, or their
attorney for them, shall make up the deficiency.
27-17-14. Cash premium
deposit and contingent liability of subscriber. -- The power of attorney
under which any contracts of insurance are exchanged pursuant to this chapter
shall provide for a cash premium deposit and a contingent liability of the
subscriber during each annual period of the term of each contract of insurance
issued to the subscriber to be fixed in the power of attorney, but in an amount
not less than one nor more than ten (10) times the amount of the annual
portion of the cash premium deposit stated in the contract, except that exchanges
which have a required surplus equal to three hundred fifty thousand dollars
($350,000) or to the minimum capital, if any, required of a stock insurance
company transacting the same kind or kinds of business, whichever is greater,
may issue policies without contingent liability; provided, however,
that the exchange which shall have issued policies without contingent liability
after the acquisition of the surplus may continue to do so only so long as it
maintains a surplus in the above amount required by this section,
and no exchange shall issue any non-assessable policies, except during a time
as it shall continue to maintain the surplus.
27-17-20. Application Applicability of
insurance producers' laws. -- The provisions of the general insurance laws of this state regarding the
appointment, licensing, qualification, and regulation of insurance producers
shall not apply to an exchange or its attorney, or to a traveling salaried
employee, or to an executive officer of or the attorney if a
corporation, but shall apply to any other person, partnership, or corporation
representing the reciprocal or interinsurance exchange in soliciting,
negotiating, or effecting of business in this state.
SECTION 33. Sections 27-18-3,
27-18-3.3, 27-18-25, 27-18-30, 27-18-31, 27-18-33, 27-18-33.1, 27-18-34,
27-18-35, 27-18-36, 27-18-38, 27-18-39, 27-18-40, 27-18-41, 27-18-48,
27-18-48.1, 27-18-49, 27-18-52, 27-18-52.1, 27-18-57, 27-18-58 and 27-18-59 of
the General Laws in Chapter 27-18 entitled "Accident and Sickness Insurance
Policies" are hereby amended to read as follows:
27-18-3. Required provisions. -- (a) Except as provided in § 27-18-5, each policy delivered or issued for
delivery to any person in this state shall contain the provisions specified in
this section in the words in which the provisions appear in this section;
provided, however, that the insurer may, at its option,
substitute, for one or more of the provisions, corresponding provisions of
different wording approved by the commissioner which are in each instance not
less favorable in any respect to the insured or the beneficiary. The provisions
shall be preceded individually by the caption appearing in this subsection or,
at the option of the insurer, by the appropriate individual or group captions
or subcaptions as the commissioner may approve:
(1) A provision as
follows:
"ENTIRE
CONTRACT; CHANGES: This policy, including the endorsements and the attached
papers, if any, constitutes the entire contract of insurance. No change in this
policy shall be valid until approved by an executive officer of the insurer and
unless the approval is endorsed hereon on the policy or attached hereto
to it. No agent has authority to change this policy or to waive any of
its provisions."
(2) A provision as
follows:
"TIME LIMIT ON
CERTAIN DEFENSES: (a) After three (3) years from the date of issue of this
policy no misstatements, except fraudulent misstatements, made by the applicant
in the application for this policy shall be used to void the policy or to deny
a claim for loss incurred or disability (as defined in the policy) commencing
after the expiration of that three-year period."
(The foregoing This policy
provision shall not be so construed as to affect any legal requirement
for avoidance of a policy or denial of a claim during the initial three (3)
year period, nor to limit the application of § 27-18-4(1), (2), (3), (4) and
(5) in the event of a misstatement with respect to age or occupation or other
insurance.)
(A policy which the insured
has the right to continue in force subject to its terms by the timely payment
of premium: (A) (i) until at least age fifty (50);
or, (B) (ii) in the case of a policy issued after age forty-four
(44), for at least five (5) years from its date of issue, may contain in lieu
of the foregoing this provision the following provision (from
which the clause in parentheses may be omitted at the insurer's option) under
the caption "INCONTESTABLE":
"After this
policy has been in force for a period of three (3) years during the lifetime of
the insured (excluding any period during which the insured is disabled), it
shall become incontestable as to the statements contained in the application.")
"(b) No claim
for loss incurred or disability (as defined in the policy) commencing after
three (3) years from the date of issue of this policy shall be reduced or
denied on the ground that a disease or physical condition not excluded from
coverage by name or specific description effective on the date of loss had
existed prior to the effective date of coverage of this policy."
(3) A provision as follows:
"GRACE PERIOD: A grace period of
________" (insert a number not less than "seven" (7) for weekly
premium policies, "ten" (10) for monthly premium policies and
"thirty-one" (31) for all other policies) "days will be granted
for the payment of each premium falling due after the first premium, during
which grace period the policy shall continue in force."
(A policy, which contains a
cancellation provision may add, at the end of the above this provision:,
"subject to the right of the insurer to
cancel in accordance with the cancellation provision hereof of this
policy.")
(A policy in which the insurer reserves the
right to refuse any renewal shall have, at the beginning of the above this
provision:,
"Unless not less than ten (10) days
prior to the premium due date the insurer has delivered to the insured or has
mailed to his or her last address as shown by the records of the insurer
written notice of its intention not to renew this policy beyond the period for
which the premium has been accepted,")
(4) A provision as follows:
"REINSTATEMENT: If any renewal premium be
is not paid within the time granted the insured for payment, a
subsequent acceptance of premium by the insurer or by any agent duly authorized
by the insurer to accept such this premium, without requiring in
connection therewith with this an application for reinstatement,
shall reinstate the policy; provided, however, that if the insurer or
the agent requires an application for reinstatement and issues a conditional
receipt for the premium tendered, the policy will be reinstated upon approval
of the application by the insurer or, lacking approval, upon the forty-fifth(45th)day
following the date of the conditional receipt unless the insurer has previously
notified the insured in writing of its disapproval of the application. The
reinstated policy shall cover only loss resulting from such an accidental
injury as may be sustained after the date of reinstatement and loss due to such
sickness as may begin more than ten (10) days after such this date.
In all other respects the insured and insurer shall have the same rights thereunder
under this policy as they had under the policy immediately before the
due date of the defaulted premium, subject to any provisions endorsed hereon
on this policy or attached hereto to it in connection with
the reinstatement. Any premium accepted in connection with a reinstatement
shall be applied to a period for which the premium has not been previously
paid, but not to any period more than sixty (60) days prior to the date of
reinstatement."
(The last sentence of the above this
provision may be omitted from any policy which the
insured has the right to continue in force
subject to its terms by the timely payment of premiums; (A) (i)
until at least age fifty (50); or, (B) (ii) in the
case of a policy issued after age forty-four (44), for at least five (5) years
from its date of issue.")
(5) A provision as follows:
"NOTICE OF CLAIM: Written notice of
claim must be given to the insurer within twenty (20) days after the occurrence
or commencement of any loss covered by the policy, or as soon thereafter
after this as is reasonably possible. Notice given by or on behalf of
the insured or the beneficiary to the insurer at ________________________"
(insert the location of such the office as the insurer may
designate for the purpose), "or to any authorized agent of the insurer,
with information sufficient to identify the insured, shall be deemed notice to
the insurer."
(In a policy providing a loss of time benefit
which may be payable for at least two (2) years, an insurer may at its option
insert the following between the first and second sentences of the above
this provision:
"Subject to the qualifications set forth
below, if the insured suffers loss of time on account of disability for which
indemnity may be payable for at least two (2) years, the insured shall, at
least once in every six (6) months after having given notice of claim, give to
the insurer notice of continuance of the disability, except in the event of
legal incapacity. The period of six (6) months following any filing of proof by
the insured or any payment by the insurer on account of the claim or any denial
of liability in whole or in part by the insurer shall be excluded in applying
this provision. Delay in the giving of notice shall not impair the insured's
right to any indemnity which would otherwise have accrued during the
period of six (6) months preceding the date on which the notice is actually
given.")
(6)
A provision as follows:
"CLAIM FORMS: The insurer, upon receipt
of a notice of claim, will furnish to the claimant such the forms
as that are usually furnished by it for filing proofs of loss. If
the forms are not furnished within fifteen (15) days after the giving of
notice, the claimant shall be deemed to have complied with the requirements of
this policy as to proof of loss upon submitting, within the time fixed in the
policy for filing proofs of loss, written proof covering the occurrence, the
character, and the extent of the loss for which claim is made."
(7) A provision as follows:
"PROOFS OF LOSS: Written proof of loss
must be furnished to the insurer at its office in the case of a claim for loss
for which this policy provides any periodic payment contingent upon continuing
loss within ninety (90) days after the termination of the period for which the
insurer is liable and in the case of a claim for any other loss within ninety
(90) days after the date of the loss. Failure to furnish proof within the time
required shall not invalidate nor reduce any claim if it was not
reasonably possible to give proof within such this required time,
provided the proof is furnished as soon as reasonably possible and in no event,
except in the absence of legal capacity, later than one year from the time
proof is otherwise required."
(8) A provision as follows:
"TIME OF PAYMENT OF CLAIMS: Indemnities
payable under this policy for any loss other than loss for which this policy
provides any periodic payment will be paid immediately upon receipt of due
written proof of such this loss. Subject to due written proof
of loss, all accrued indemnities for loss for which this policy provides
periodic payment will be paid ________________________" (insert period for
payments which must not be less frequently than monthly) "and any balance
remaining unpaid upon the termination of liability will be paid immediately
upon receipt of due written proof."
(9) A provision as follows:
"PAYMENT OF CLAIMS: Indemnity for loss
of life will be payable in accordance with the beneficiary designation and the
provisions respecting the payment which may be prescribed herein and
effective at the time of payment. If no such designation or provision is
then effective, indemnity shall be payable to the estate of the insured.
Any other accrued indemnities unpaid at the insured's death may, at the option
of the insurer, be paid either to the beneficiary or to such the estate.
All other indemnities will be payable to the insured."
(The
following provisions, or either of them these provisions, may be
included with the foregoing this provision at the option of the
insurer:
"If any indemnity of this policy shall
be payable to the estate of the insured, or to an insured or beneficiary who is
a minor or otherwise not competent to give a valid release, the insurer
may pay the indemnity, up to an amount not exceeding $____________"
(insert an amount which shall not exceed one thousand dollars ($1,000)),
"to any relative by blood or connection by marriage of the insured or
beneficiary who is deemed by the insurer to be equitably entitled thereto
to it. Any payment made by the insurer in good faith pursuant to this
provision shall fully discharge the insurer to the extent of the payment."
"Subject to any written direction of the insured in the application or
otherwise, all or a portion of any indemnities provided by this policy on
account of hospital, nursing, medical, or surgical services may, at the
insurer's option and unless the insured requests otherwise in writing not later
than the time of filing proofs of the loss, be paid directly to the hospital or
person rendering the services; but it is not required that the service be
rendered by a particular hospital or person.")
(10) A provision as
follows:
"PHYSICAL
EXAMINATIONS AND AUTOPSY: The insurer at its own expense shall have the right
and opportunity to examine the person of the insured when and as often as it
may reasonably require during the pendency of a claim hereunder and to make an
autopsy in case of death where it is not forbidden by law."
(11) A provision as
follows:
"LEGAL ACTIONS:
No action at law or in equity shall be brought to recover on this policy prior
to the expiration of sixty (60) days after written proof of loss has been
furnished in accordance with the requirements of this policy. No action shall
be brought after the expiration of three (3) years after the time written proof
of loss is required to be furnished."
(12) A provision as
follows:
"CHANGE OF
BENEFICIARY: Unless the insured makes an irrevocable designation of
beneficiary, the right to change of beneficiary is reserved to the insured and
the consent of the beneficiary or beneficiaries shall not be requisite to
surrender or assignment of this policy or to any change of beneficiary or
beneficiaries, or to any other changes in this policy."
(The first clause of
this provision, relating to the irrevocable designation of beneficiary, may be
omitted at the insurer's option.)
(13) A provision as
follows:
"'Medical
services' means such those professional services and
supplies rendered by or under the direction of persons duly licensed under the
laws of this state to practice medicine, surgery, or podiatry as may be
specified by any medical service plan. Medical service shall not be construed
to include hospital services."
(b) (1) Each policy hereafter
issued and/or renewed shall contain a minimum home health care benefit as outlined
herein below follows:
(i) "Home
health care" is defined as a medically necessary program to reduce
the length of a hospital stay or to delay or eliminate an otherwise a
medically necessary hospital admission;
(ii) The home health
care program shall be formulated and supervised by the subscriber's physician;
(iii) TheMinimum
home health care coverage shall not exceed six (6) home or office physician's
visits per month, and shall not exceed three (3) nursing visits per week, home
health aide visits up to twenty (20) hours per week, and the following services
as needed: physical or occupational therapy as a rehabilitative service,
respiratory service, speech therapy, medical social work, nutrition counseling,
prescription drugs and medication, medical and surgical supplies, such as
dressings, bandages, and casts, minor equipment such as commodes and walkers,
laboratory testing, x-rays and E.E.G. and E.K.G. evaluations; and
(iv) Communicable diseases
and/or nervous, emotional and mental illness are excluded from home health care
coverage;
(2) The commissioner
shall approve the wording in each policy which that in each instance shall not be less
favorable in any respect to the insured or the beneficiary, as the benefits are
outlined herein above in subdivision (1) of this subsection. Any
accident and sickness insurance policy whose benefits are limited to income
protection or the furnishing of disability income or a limited benefit health
coverage are hereby excluded from this subsection. Notwithstanding the
provisions of § 27-18-19(3), as amended, the minimum home health care
benefit shall be included in blanket and/or group policies of accident and
sickness insurance;.
(3) A "limited benefit policy," for the purposes of this section, is any accident and sickness policy that covers one or more specified risks including, but not limited to, accidental death or injury or specified disease. A policy that broadly covers accident and sickness, but which contains exclusions and limitations with respect to certain risks or services, is not a limited benefit policy;
(4) With respect to blanket and/or group policies, the provisions of this
subsection shall apply only to services provided to residents of Rhode Island
or employees of Rhode Island employers.
27-18-3.3. Penalties. -- In addition to any other penalty provided by law, any person, firm, or
corporation who violates §§ 27-18-3.1 - 27-18-3.5, after a hearing held
in accordance with the provisions of § 42-35-9 by the department of business
regulation, shall be fined civilly not less than one thousand dollars ($1,000)
nor more than two thousand five hundred dollars ($2,500).
27-18-25. Unfair
discrimination prohibited. -- Notwithstanding any provision of any policy
of insurance, certificate, or service contract issued after May 9, 1968 in
this state, whenever the insurance policy, certificate, or service contract
provides for reimbursement for any services which may be legally performed by
any person licensed under the provisions of chapters 29, 30, 35 and 37 of title
5, reimbursement under the insurance policy, certificate, or service contract
shall not be denied because of race, color, or creed, nor shall any insurer
make or permit any unfair discrimination against particular individuals or
persons licensed under chapters 29, 30, 35 and 37 of title 5.
27-18-30. Health insurance
contracts - Infertility. -- (a) Any health insurance contract, plan, or
policy delivered or issued for delivery or renewed in this state, on
or after December 1, 1989, except contracts providing supplemental coverage
to Medicare or other governmental programs, which includes pregnancy related
benefits, shall provide coverage for medically necessary expenses of diagnosis
and treatment of infertility. To the extent that a health insurance contract
provides reimbursement for a test or procedure used in the diagnosis or
treatment of conditions other than infertility, the tests and procedures shall
not be excluded from reimbursement when provided attendant to the diagnosis and
treatment of infertility; provided, that a subscriber copayment not to exceed
twenty percent (20%) may be required for those programs and/or procedures the
sole purpose of which is the treatment of infertility.
(b) For the purpose
of this section, "infertility" shall mean means the
condition of an otherwise presumably healthy married individual who is unable
to conceive or produce conception during a period of one year.
(c) Notwithstanding
the provisions of § 27-18-19 or any other provision to the contrary, this
section shall apply to blanket or group policies of insurance.
27-18-31. Insurance
coverage for services of licensed midwives. -- (a) For the purposes
of this section, "licensed midwives" means any midwife licensed under
§ 23-13-9.
(b) Every individual
or group hospital or medical expense insurance policy or individual or group
hospital or medical services plan contract delivered, issued for delivery, or
renewed in this state on or after January 1, 1991, shall provide
coverage for the services of licensed midwives in accordance with each health
insurers' respective principles and mechanisms of reimbursement credentialing
and contracting if the services are within the licensed midwives' area of professional
competence as defined by regulations promulgated pursuant to § 23-13-9, and are
currently reimbursed when rendered by any other licensed health care provider.
No insurer or hospital or medical service corporation may require supervision,
signature, or referral by any other health care provider as a condition of
reimbursement, except when those requirements are also applicable to other
categories of health care providers. No insurer or hospital or medical service
corporation or patient may be required to pay for duplicate services actually
rendered by both a licensed midwife and any other health care provider. Direct
payment for licensed midwives will be contingent upon services rendered in a
licensed health care facility and for services rendered in accordance with
rules and regulations promulgated by the department of health; provided,
however, that this provision shall not prohibit payment for services pursuant
to § 42-62-26 or for other services reimbursed by third party payors.
27-18-33. Drug coverage. -- No group health insurer subject to the provisions of this chapter that
provides coverage for prescription drugs under a group plan master contract
delivered, issued for delivery, or renewed in this state on or after July 1,
1991, may require any person covered under the contract to obtain
prescription drugs from a mail order pharmacy as a condition of obtaining
benefits for the drugs.
27-18-33.1. Insurance
coverage for post-partum hospital stays. -- (a) Every individual or
group hospital or medical services plan contract delivered, issued for
delivery, as renewed in this state on or after September 1, 1996 which
provides maternity benefits shall provide coverage for a forty-eight (48) hour
time period in a hospital after a vaginal birth and ninety-six (96) hours after
a Cesarean section for a mother and her newly born child. Any decision to
shorten these minimum coverages shall be made by the attending health care
provider in consultation with the mother. The decision shall be made in accordance
with the standards for guidelines for perinatal care published by the American
College of Obstetrics and Gynecology and the American Academy of Pediatrics.
The standards shall be relative to early discharge, defined as less than
forty-eight (48) hours for a vaginal delivery and ninety-six (96) for a
Cesarean delivery. In the case of early discharge, post-delivery care shall
include:, home visits, parent education, assistance and training
in breast or bottle feeding and the performance of any necessary and
appropriate clinical tests or any other tests or services consistent with the
above guidelines.
(b) For the purposes
of this section, "attending health care provider" shall include
includes the attending obstetrician, pediatrician, family practitioner, general
practitioner or certified nurse midwife attending the mother and newly born
child.
(c) Any subscriber who is aggrieved by a denial of benefits to be
provided under this section may appeal the denial in accordance with
regulations of the department of health, which have been promulgated pursuant
to chapter 17.12 of title 23. No policy or plan covered under this chapter
shall terminate the services, reduce capitation payment, or otherwise penalize
an attending physician or other health care provider who orders care consistent
with the provisions of this section.
27-18-34. Health insurance
contracts - Certified registered nurse practitioners and psychiatric and mental
health nurse clinical specialists.
-- (a) Every health insurance
contract, plan, or policy delivered, issued for delivery, or renewed in this
state may, through the period ending January 1, 1995, and thereafter,
shall provide coverage for the services of a certified registered nurse
practitioner and psychiatric and mental health nurse clinical specialist
practicing collaboration with or in the employ of a physician licensed under
chapter 37 of title 5 to subscribers, if the services are within the certified
registered nurse practitioner's or psychiatric and mental health nurse clinical
specialist's area of professional competence as established by education and
certification, and are currently reimbursed when rendered by any other licensed
health care provider. No insurer or hospital, medical service corporation, or
health maintenance organization may require the signature, by any other health
care provider as a condition of reimbursement. No insurer or hospital, medical
service corporation, or health maintenance organization may be required to pay
for duplicative services actually rendered by both a certified registered nurse
practitioner and any other health care provider.
(b) Nothing in this
chapter shall preclude the conducting of managed care reviews and medical
necessity reviews by an insurer or hospital or medical service corporation or
health maintenance organization.
27-18-35. Certified
counselors in mental health and therapists in marriage and family practice. -- Every health insurance contract plan or policy delivered, issued for
delivery or renewed in this state, on or after January 1, 1994,
except policies which only provide coverage for specified diseases, fix
indemnity, Medicare supplement long term care disability income, or other
limited benefit policies, shall provide coverage for the services of counselors
in mental health licensed pursuant to § 5-63.2-9 and therapists in marriage and
family practice licensed pursuant to § 5-63.2-10 excluding marital and family
therapy unless the individual is diagnosed with a mental disorder.
27-18-36. New cancer
therapies - Under investigation.
-- Every individual or group
hospital or medical expense insurance policy or individual or group hospital or
medical service plan contract delivered, issued for delivery or renewed in this
state, on or after January 1, 1995, except policies which only
provide coverage for specified diseases other than cancer, fixed indemnity,
disability income, accident only, long-term care Medicare supplement limited
benefit health, sickness or bodily injury or death by accident or both, or
other limited benefit policies, shall provide coverage for new cancer therapies
still under investigation as outlined in this chapter.
27-18-38. Diabetes treatment. -- (a) Every individual or group health insurance contract, plan, or policy
delivered, issued for delivery or renewed in this state on or after January
1, 1997, which provides medical coverage that includes coverage for
physician services in a physician's office, and every policy which
provides major medical or similar comprehensive-type coverage, except for
supplemental policies which only provide coverage for specified diseases and
other supplemental policies, shall include coverage for the following equipment
and supplies for the treatment of insulin treated diabetes, non-insulin treated
diabetes, and gestational diabetes, if medically appropriate and prescribed by
a physician: blood glucose monitors and blood glucose monitors for the legally
blind, test strips for glucose monitors and/or visual reading, insulin,
injection aids, cartridges for the legally blind, syringes, insulin pumps and
appurtenances thereto to the pumps, insulin infusion devices, and
oral agents for controlling blood sugar and therapeutic/molded shoes for the
prevention of amputation.
(b) Upon the approval
of new or improved diabetes equipment and supplies by the Food and Drug
Administration, all policies governed by this act section shall
guarantee coverage of new diabetes equipment and supplies when medically
appropriate and prescribed by a physician. These policies shall also include
coverage, when medically necessary, for diabetes self-management education to
ensure that persons with diabetes are instructed in the self-management and
treatment of their diabetes, including information on the nutritional
management of diabetes. The coverage for self-management education and
education relating to medical nutrition therapy shall be limited to medically
necessary visits upon the diagnosis of diabetes, where a physician diagnoses a
significant change in the patient's symptoms or conditions which necessitate
changes in a patient's self-management, or where reeducation or refresher
training is necessary. This education when medically necessary and prescribed
by a physician, may be provided only by the physician or, upon his/her his
or her referral to an appropriately licensed and certified health care
provider and may be conducted in group settings. Coverage for self-management
education and education relating to medical nutrition therapy shall also
include home visits when medically necessary.
(c) Benefit plans
offered by an insurer may impose copayment and/or deductibles for the benefits
mandated by this chapter;, however, in no instance shall the
copayment or deductible amount be greater than the copayment or deductible amount
imposed for other supplies, equipment or physician office visits. Benefits for
services under this act section shall be reimbursed in accordance
with the respective principles and mechanisms of reimbursement for each
insurer, hospital, or medical service corporation, or health maintenance
organization.
27-18-39. Mastectomy
treatment. -- (a) Every individual or group health
insurance contract, plan, or policy delivered, issued for delivery or renewed
in this state on or after January 1, 1997, which provides medical
coverage that includes coverage for physician services in a physician's office,
and every policy which provides major medical or similar comprehensive-type
coverage excluding supplemental policies which only provide coverage for
specified diseases or other supplemental policies, shall include
coverage for prosthetic devices and or reconstructive surgery to restore and
achieve symmetry for the patient incident to a mastectomy. Coverage for
prosthetic devices and reconstructive surgery shall be subject to the
deductible and coinsurance conditions applied to the mastectomy and all other
terms and conditions applicable to other benefits. Any reconstructive surgery
under this section must be performed within eighteen (18) months of the
original mastectomy. As used in this section, "mastectomy" means the
removal of all or part of the breast to treat breast cancer, tumor, or mass.
(b) Any provision in any contract issued, amended, delivered or renewed
in this state on or after January 1, 1997, which is in conflict with this
section shall be of no force or effect.
(b) (c) As used in this section,
"prosthetic devices" means and includes the provision of initial and
subsequent prosthetic devices pursuant to an order of the patient's physician
or surgeon.
(c) (d) Nothing in this section shall be
construed to require an individual or group policy to cover the surgical
procedure known as mastectomy or to prevent application of deductible or
copayment provisions contained in the policy or plan, nor shall this section be
construed to require that coverage under an individual or group policy be
extended to any other procedures.
(d) (e) Nothing in this section shall be
construed to authorize an insured or plan member to receive the coverage
required by this section if that coverage is furnished by a nonparticipating
provider, unless the insured or plan member is referred to that provider by a
participating physician, nurse practitioner, or certified nurse midwife
providing care.
(e) Nothing in this section shall preclude the
conducting of managed care reviews and medical necessity reviews, by an
insurer, hospital or medical service corporation or health maintenance
organization.
27-18-40. Insurance
coverage for mastectomy hospital stays. -- (a) The Rhode Island
General Assembly recongnizes recognizes that breast cancer is a
unique illness with both a physical and emotional impact on patients. Except as
otherwise provided, every individual or group hospital or medical services plan
contract delivered, issued for delivery, as renewed in this state on or
after September 1, 1997, shall provide coverage for a minimum forty-eight
(48) hour time period in a hospital after the surgical procedures known as a
mastectomy, and a minimum twenty-four (24) hours after an axilary node
dissection.
(b) Provided, however, This section shall
not apply to insurance coverage providing benefits for: (1) hospital
confinement indemnity; (2) disablity income; (3) accident only; (4) long term
care; (5) medicare supplement; (6) limited benefit health; (7) specified
disease indemnity; (8) sickness or bodily injury or death by accident or both,
and (9) other limited benefit policies. Any decision to shorten these minimum
coverages shall be made by the attending physician in consultation with and
upon agreement by the patient. If the patient participates in an early
discharge, defined as in-patient care following a mastectomy that is less than
forty-eight (48) hours and in-patient care following an axilary node dissection
that is less than twenty-four (24) hours, coverage shall include a minimum of
one home visit conducted by a physician or registered nurse.
(c) (b) Any subscriber who is aggrieved
by a denial of benefits to be provided under this section may appeal the denial
in accordance with regulations of the department of health, which have been
promulgated pursuant to chapter 17.12 of title 23. No policy or plan covered
under this chapter shall terminate the services, reduce capitation payment, or
otherwise penalize an attending physician or other health care provider who
orders care consistent with the provisions of this section.
(d) (c) Notice. All plans subject to this
section shall provide notice to each enrollee:
(1) In the next mass
mailing made by the plan to the employee; or
(2) As part of any
informational packet sent to the enrollee.
27-18-41. Mammograms and
pap smears - Coverage mandated.
-- (a) Every individual or group
hospital or medical expense insurance policy or individual or group hospital or
medical services plan contract delivered, issued for delivery, or renewed in
this state on or after January 1, 1996, shall provide coverage for
mammograms and pap smears, in accordance with guidelines established by the
American cancer society.
(b) This section
shall not apply to insurance coverage providing benefits for: (1) hospital
confinement indemnity; (2) disability income; (3) accident only; (4) long term
care; (5) Medicare supplement; (6) limited benefit health; (7) specified
disease indemnity; (8) sickness or bodily injury or death by accident or both,
and (9) other limited benefit policies.
27-18-48. Third party
reimbursement for services of certain health care workers. -- (a) Every individual or group hospital or medical services plan contract
delivered, issued or renewed by an insurer or nonprofit or for profit health
service corporation on or after January 1, 1998, which provides benefits
to individual subscribers and members within the state, or to all group members
having a principal place of employment within the state, shall provide benefits
for services rendered by a certified registered nurse anesthetist designated as
a certified registered nurse anesthetist by the board of nurse registration and
nursing education; provided, however, that the following conditions are met:
(1) The certified
registered nurse anesthetist provides certain health care services under the
supervision of anesthesiologists, licensed physicians or licensed dentists in
accordance with § 5-34.2-2(c), which requires substantial specialized knowledge,
judgment and skill related to the administration of anesthesia, including
pre-operative and post-operative assessment of patients; administering
anesthetics; monitoring patients during anesthesia; management of fluids in
intravenous therapy and management of respiratory care; and
(2) The policy or
contract currently provides benefits for identical services rendered by a
provider of health care licensed by the state; and
(3) The certified registered
nurse anesthetist is not a salaried employee of the licensed hospital or
facility for which the accident and sickness insurer has an alternative
contractual relationship to fund the services of a certified registered nurse
anesthetist.
(b) It shall remain within the sole discretion of the health maintenance
organization as to which certified registered nurse anesthetists it shall
contract with. Reimbursement shall be provided according to the respective
principles and policies of the health maintenance organization; provided,
however, that no health maintenance organization may be required to pay for
duplicative services actually rendered by a certified registered nurse
anesthetist and any other health care provider. Nothing contained herein
in this section shall preclude the health maintenance organization from
conducting managed care, medical necessity or utilization review.
27-18-48.1. Third party
reimbursement for services of registered nurse first assistants. -- (a) Every individual or group hospital or medical services plan contract
delivered, issued or renewed by an insurer or nonprofit health service
corporation on or after January 1, 2000, which provides benefits to
individual subscribers and members within the state, or to all group members
having a principal place of employment within the state, shall provide benefits
for services rendered by a registered nurse first assistant designated as a
registered nurse first assistant provided, however, that the following
conditions are met:
(1) The registered
nurse first assistant provides certain health care services under the
supervision of a licensed physician; is currently licensed as a registered
nurse in Rhode Island; has successfully completed a course in preparing the
registered nurse as a first assistant in accordance with the Association of
Operating Room Nurses core curriculum guide for the registered nurse first
assistant and includes a minimum of one academic year in a college or
university with didactic instruction and clinical internship programs; and is
certified in perioperative nursing by the Certification Board Perioperative
Nursing (minimum of two years perioperative experience);
(2) The policy or
contract, currently provides benefits for identical services rendered by
a provider of health care licensed by the state; and
(3) The registered
nurse first assistant is not a salaried employee of the licensed hospital or
facility for which the accident and sickness insurer has an alternative
contractual relationship to fund the services of a registered nurse first
assistant.
(b) It shall remain
within the sole discretion of the accident and sicknesses insurer as to which
registered nurse first assistant it shall contract with. Reimbursement shall be
provided according to the respective principles and policies of the health
maintenance organization; provided, however, that no accident and sicknesses
insurer may be required to provide direct reimbursement, or pay for duplicative
services actually rendered by a registered nurse first assistant and any other
health care provider. Nothing contained herein in this section
shall preclude the health maintenance organization from conducting managed
care, medical necessity or utilization review.;
(c) provided,
however, that This section shall not apply to insurance coverage providing
benefits for: (1) hospital confinement indemnity, (2) disability income, (3)
accident only, (4) long term care, (5) Medicare supplement, (6) limited benefit
health, (7) specified disease indemnity, (8) sickness or bodily injury or death
by accident or both, and (9) other limited benefit policies.
27-18-49. Human leukocyte
antigen testing. -- (a) Every individual or group hospital or
medical services plan contract delivered or renewed in this state on or
after March 19, 1998, shall include coverage of the cost for human
leukocyte antigen testing, also referred to as histocompatibility locus antigen
testing, for A, B, and DR antigens for utilization in bone marrow
transplantation. The testing must be performed in a facility which is
accredited by the American Association of Blood Banks or its successors, and is
licensed under the Clinical Laboratory Improvement Act, 42 U.S.C. § 263a, as it
may be from time to time amended. At the time of the testing, the person being
tested must complete and sign an informed consent form which also authorizes
the results of the test to be used for participation in the National Marrow
Donor Program. The group hospital or medical services plan contract may limit
each subscriber to one of these testings per lifetime.
(b) This section
shall not apply to insurance coverage providing benefits for: (i)(1)
hospital confinement indemnity; (ii)(2) disability income; (iii)(3)
accident only; (iv)(4) long term care; (v)(5)
Medicare supplement; (vi)(6) limited benefit health; (vii)(7)
specified disease indemnity; (viii)(8) sickness or bodily injury
or death by accident or both; and (ix)(9) other limited benefit
policies.
27-18-52. Genetic testing. -- (a) Except as provided in chapter 37.3 of title 5, insurance
administrators, health plans and providers shall be prohibited from releasing
genetic information without prior written authorization of the individual.
Written authorization shall be required for each disclosure and include to whom
the disclosure is being made. An exception shall exist for those participating
in research settings governed by the Federal Policy for the Protection of Human
Research Subjects (also known as "The Common Rule"). Tests conducted
purely for research are excluded from the definition, as are tests for somatic
(as opposed to heritable) mutations, and testing for forensic purposes.
(b) No individual or
group health insurance contract, plan, or policy delivered, issued for
delivery, or renewed in this state on or after January 1, 1999, which
provides health insurance medical coverage that includes coverage for physician
services in a physician's office, and every policy which provides major
medical or similar comprehensive-type coverage excluding disability income,
long term care and insurance supplemental policies which only provide coverage
for specified diseases or other supplemental policies, shall:
(1) Use a genetic
test or request for genetic tests or the results of a genetic test to reject,
deny, limit, cancel, refuse to renew, increase the rates of, affect the terms
or conditions of, or otherwise affect a group or an individual health insurance
policy, contract, or plan;
(2)
Request or require a genetic test for the purpose of determining whether or not
to issue or renew an individual's health benefits coverage, to set
reimbursement/co-pay levels or determine covered benefits and services;
(3) Release the
results of a genetic test without the prior written authorization of the
individual from whom the test was obtained, except in a format whereby
individual identifiers are removed, encrypted, or encoded so that the identity
of the individual is not disclosed. A recipient of information pursuant to this
section may use or disclose such information solely to carry out the purpose
for which the information was disclosed. Authorization shall be required for
each redisclosure; an exception shall exist for participating in research
settings governed by the Federal Policy for the Protection of Human Research
Subjects (also known as "The Common Rule").
(4) Request or
require information as to whether an individual has ever had a genetic test, or
participated in genetic testing of any kind, whether for clinical or research
purposes.
(c) For the purposes of this section, "genetic testing" is the
analysis of an individual's DNA, RNA, chromosomes, proteins and certain
metabolites in order to detect heritable disease-related genotypes, mutations,
phenotypes or karyotypes for clinical purposes. Such purposes include
predicting risk of disease, identifying carriers, establishing prenatal and
clinical diagnosis or prognosis. Prenatal, newborn and carrier screening, as
well as testing in high risk families may be included provided there is an
approved release by a parent or guardian. Tests for metabolites are covered
only when they are undertaken with high probability that an excess of
deficiency of the metabolite indicates the presence of heritable mutations in
single genes. "Genetic testing" does not mean routine physical measurement,
a routine chemical, blood, or urine analysis or a test for drugs or for HIV
infections.
27-18-52.1. Genetic
information. -- (a) Except as provided in chapter 37.3 of
title 5, insurance administrators, health plans and providers shall be
prohibited from releasing genetic information without prior written
authorization of the individual. Written authorization shall be required for
each disclosure and include to whom the disclosure is being made. An exception
shall exist for those participating in research settings governed by the
Federal Policy for the Protection of Human Research Subjects (also known as
"The Common Rule"). Tests conducted purely for research are excluded
from the definition, as are tests for somatic (as opposed to heritable) mutations,
and testing for forensic purposes.
(b) No individual or
group health insurance contract, plan, or policy delivered, issued for
delivery, or renewed in this state on or after January 1, 2002, which
provides medical coverage that includes coverage for physician services in a
physician's office, and every policy which provides major medical or
similar comprehensive-type coverage excluding disability income, long term care
and insurance supplemental policies which only provide coverage for specified
diseases or other supplemental policies, shall:
(1) Use genetic
information or request for genetic information or the results of genetic
information or other genetic information to reject, deny, limit, cancel, refuse
to renew, increase the rates of, affect the terms or conditions of, or
otherwise affect a group or an individual's health insurance policy, contract,
or plan;
(2) Request or
require genetic information for the purpose of determining whether or not to
issue or renew an individual's health benefits coverage, to set
reimbursement/co-pay levels or determine covered benefits and services;
(3) Release the
results of genetic information without the prior written authorization of an
individual from whom the information was obtained, except in a format whereby
individual identifiers are removed, encrypted, or encoded so that the
identity of the individual is not disclosed. A recipient of information
pursuant to this section may use or disclose such the information solely to carry out the
purpose for which the information was disclosed. Authorization shall be
required for each redisclosure. An exception shall exist for participation in
research settings governed by the Federal Policy for the Protection of Human
Research Subjects (also known as "The Common Rule");
(4) Request or
require information as to whether an individual has genetic information, or
participated in genetic information of any kind, whether for clinical or
research purposes.
(c) For the purposes
of this section, "genetic information" is information about genes,
gene product, or inherited characteristics that may derive from the individual
or a family member.
27-18-57. F.D.A. approved
prescription contraceptive drugs and devices. -- (a) Every individual
or group health insurance contract, plan, or policy that provides prescription
coverage and is delivered, issued for delivery, or renewed in this state on
or after January 1, 2001, shall provide coverage for F.D.A. approved
contraceptive drugs and devices requiring a prescription. Provided, however,
that nothing in this subsection shall be deemed to mandate or require coverage
for the prescription drug RU 486.
(b)
Notwithstanding any other provision of this section, any insurance company may
issue to a religious employer an individual or group health insurance contract,
plan, or policy that excludes coverage for prescription contraceptive methods
which are contrary to the religious employer's bona fide religious tenets.
(c) As used in this
section, "religious employer" means an employer that is a "church
or a qualified church-controlled organization" as defined in 26 U.S.C. §
3121.
(d) Provided,
however, that This section does not apply to insurance coverage providing
benefits for: (1) hospital confinement indemnity; (2) disability income; (3)
accident only; (4) long term care; (5) Medicare supplement; (6) limited benefit
health; (7) specified diseased indemnity; (8) sickness of bodily injury or
death by accident or both; and (9) other limited benefit policies.
(e) very religious employer that invokes the exemption provided under
this section shall provide written notice to prospective enrollees prior to
enrollment with the plan, listing the contraceptive health care services the
employer refuses to cover for religious reasons.
27-18-58. Prostate and
colorectal examinations - Coverage mandated. -- Every individual or
group hospital or medical expense insurance policy or individual or group
hospital or medical services plan contract delivered, issued for delivery, or
renewed in this state on or after December 31, 2000, shall provide
coverage for prostate and colorectal examinations and laboratory tests for
cancer for any nonsymptomatic person covered under that policy or contract, in
accordance with the current American Cancer Society guidelines. Provided,
however, this section does not apply to insurance coverage providing benefits
for: (1) hospital confinement indemnity; (2) disability income; (3) accident
only; (4) long-term care; (5) Medicare supplement; (6) limited benefit health;
(7) specific disease indemnity; (8) sickness or bodiy bodily
injury or death by accident or both; and (9) other limited benefit policies.
27-18-59. Termination of
children's benefits. -- (a) Every individual or group health
insurance contract, plan, or policy delivered, issued for delivery, or renewed
in this state on or after January 1, 2001, which provides medical
coverage that includes coverage for physician services in a physician's office,
and every policy which provides major medical or similar comprehensive type coverage,
except for supplemental policies which only provide coverage for specified
diseases and other supplemental policies, shall include a provision that
policyholders shall receive no less than thirty (30) days notice from the
accident and sickness insurer that a child covered as a dependent by the policy
holder is about to lose his or her coverage as a result of reaching the maximum
age for a dependent child, and that the child will only continue to be covered
upon documentation being provided of current college enrollment or that the
child may purchase a conversion policy if he or she is not a college student.
Nothing in this section prohibits an accident and sickness insurer from
requiring a policyholder to annually provide proof of a child's current college
enrollment in order to maintain the child's coverage. Provided further, nothing
in this section requires coverage inconsistent with the membership criteria in
effect under the policyholder's health benefits coverage.
(b) Provided, however, that This section does not apply to
insurance coverage providing benefits for: (1) hospital confinement indemnity;
(2) disability income; (3) accident only; (4) long term care; (5) Medicare
supplement; (6) limited benefit health; (7) specified diseased indemnity; or
(8) other limited benefit policies.
SECTION 34. Section 27-18.1-3 of the General Laws in Chapter 27-18.2
entitled "Compliance of Health Benefit Contracts and Medical Assistance
Program with Federal Law" is hereby amended to read as follows:
27-18.1-3. Exclusions and
limitations prohibited. -- No insurance company, health maintenance
organization, or nonprofit corporation may issue, deliver, or renew any
contract providing a health benefit or benefits on or after October 1, 1979
which contains any provisions excluding or limiting its benefits on account of
eligibility for or payment of benefits under 42 U.S.C. § 1396 et seq.;
provided, however, that the application of this section shall not increase the
personal liability to health care providers of a medical assistance recipient
of health services, as those services are defined in § 42-62-4.
SECTION 35. Section 27-18-22 of the General Laws in Chapter 27-18
entitled "Accident and Sickness Insurance Policies" is hereby amended
to read as follows:
27-18-22. Effect on other
law. -- Nothing in this chapter shall be construed to
repeal the provisions of chapter 13 13.1 of this title.
SECTION 36. Sections 27-18.6-1, 27-18.6-3, and 27-18.6-7 of the General
Laws in Chapter 27-18.6 entitled "Large Group Health Insurance
Coverage" are hereby amended to read as follows:
27-18.6-1. Purpose. -- The purpose of this chapter is to insure compliance of all policies, contracts, certificates, and
agreements of group health insurance coverage offered or delivered in this state
with the Health Insurance Portability and Accountability Act of 1996 (P.L.
104-191).
27-18.6-3. Limitation on preexisting condition exclusion.
-- (a) (1) Notwithstanding any of
the provisions of this title to the contrary, a group health plan and a health
insurance carrier offering group health insurance coverage shall not deny,
exclude, or limit benefits with respect to a participant or beneficiary because
of a preexisting condition exclusion except if:
(i) The exclusion
relates to a condition (whether physical or mental), regardless of the cause of
the condition, for which medical advice, diagnosis, care, or treatment was
recommended or received within the six (6) month period ending on the
enrollment date;
(ii) The exclusion
extends for a period of not more than twelve (12) months (or eighteen (18)
months in the case of a late enrollee) after the enrollment date; and
(iii) The period of
the preexisting condition exclusion is reduced by the aggregate of the periods
of creditable coverage, if any, applicable to the participant or the
beneficiary as of the enrollment date.
(2) For purposes of
this section, genetic information shall not be treated as a preexisting
condition in the absence of a diagnosis of the condition related to that
information.
(b) With respect to subsection
paragraph (a)(1)(iii) of this section, a period of creditable coverage
shall not be counted, with respect to enrollment of an individual under a group
health plan, if, after that period and before the enrollment date, there was a
sixty-three (63) day period during which the individual was not covered under
any creditable coverage.
(c) Any period that
an individual is in a waiting period for any coverage under a group health plan
or for group health insurance or is in an affiliation period shall not be taken
into account in determining the continuous period under subsection (b) of this
section.
(d) Except as
otherwise provided in subsection (e) of this section, for purposes of applying subsection
paragraph (a)(1)(iii) of this section, a group health plan and a health
insurance carrier offering group health insurance coverage shall count a period
of creditable coverage without regard to the specific benefits covered during
the period.
(e) (1) A group
health plan or a health insurance carrier offering group health insurance may
elect to apply subsection paragraph (a)(1)(iii) of this section
based on coverage of benefits within each of several classes or categories of
benefits. Those classes or categories of benefits are to be determined by the
secretary of the United States Department of Health and Human Services pursuant
to regulation. The election shall be made on a uniform basis for all
participants and beneficiaries. Under the election, a group health plan or
carrier shall count a period of creditable coverage with respect to any class
or category of benefits if any level of benefits is covered within the class or
category.
(2) In the case of an
election under this subsection with respect to a group health plan (whether or
not health insurance coverage is provided in connection with that plan), the
plan shall:
(i) Prominently state
in any disclosure statements concerning the plan, and state to each enrollee
under the plan, that the plan has made the election; and
(ii) Include in the
statements a description of the effect of this election.
(3) In the case of an
election under this subsection with respect to health insurance coverage
offered by a carrier in the large group market, the carrier shall:
(i) Prominently state
in any disclosure statements concerning the coverage, and to each employer at
the time of the offer or sale of the coverage, that the carrier has made the
election; and
(ii) Include in the
statements a description of the effect of the election.
(f) (1) A group
health plan and a health insurance carrier offering group health insurance
coverage may not impose any preexisting condition exclusion in the case of an
individual who, as of the last day of the thirty (30) day period beginning with
the date of birth, is covered under creditable coverage.
(2) Subdivision (1) of
this subsection shall no longer apply to an individual after the end of the
first sixty-three (63) day period during all of which the individual was not
covered under any creditable coverage. Moreover, any period that an individual
is in a waiting period for any coverage under a group health plan (or for group
health insurance coverage) or is in an affiliation period shall not be taken
into account in determining the continuous period for purposes of determining
creditable coverage.
(g) (1) A group
health plan and a health insurance carrier offering group health insurance
coverage may not impose any preexisting condition exclusion in the case of a
child who is adopted or placed for adoption before attaining eighteen (18)
years of age and who, as of the last day of the thirty (30) day period
beginning on the date of the adoption or placement for adoption, is covered
under creditable coverage. The previous sentence does not apply to coverage
before the date of the adoption or placement for adoption.
(2) Subdivision (1) of
this subsection shall no longer apply to an individual after the end of the
first sixty-three (63) day period during all of which the individual was not
covered under any creditable coverage. Moreover, any period that an individual
is in a waiting period for any coverage under a group health plan (or for group
health insurance coverage) or is in an affiliation period shall not be taken
into account in determining the continuous period for purposes of determining
creditable coverage.
(h) A group health
plan and a health insurance carrier offering group health insurance coverage
may not impose any preexisting condition exclusion relating to pregnancy as a
preexisting condition.
(i) (1) Periods of
creditable coverage with respect to an individual shall be established through
presentation of certifications. A group health plan and a health insurance
carrier offering group health insurance coverage shall provide certifications:
(i) At the time an
individual ceases to be covered under the plan or otherwise becomes covered
under a COBRA continuation provision;
(ii) In the case of
an individual becoming covered under a continuation provision, at the time the
individual ceases to be covered under that provision; and
(iii) On the request
of an individual made not later than twenty-four (24) months after the date of
cessation of the coverage described in subparagraph paragraph (i)
or (ii) of this subdivision, whichever is later.
(2) The certification
under this subsection may be provided, to the extent practicable, at a time
consistent with notices required under any applicable COBRA continuation
provision.
(3) The certification
described in this subsection is a written certification of:
(i) The period of
creditable coverage of the individual under the plan and the coverage (if any)
under the COBRA continuation provision; and
(ii) The waiting
period (if any) (and affiliation period, if applicable) imposed with respect to
the individual for any coverage under the plan.
(4) To the extent
that medical care under a group health plan consists of group health insurance
coverage, the plan is deemed to have satisfied the certification requirement
under this subsection if the health insurance carrier offering the coverage
provides for the certification in accordance with this subsection.
(5) In the case of an
election taken pursuant to subsection (e) of this section by a group
health plan or a health insurance carrier, if the plan or carrier enrolls an
individual for coverage under the plan and the individual provides a
certification of creditable coverage, upon request of the plan or carrier, the
entity which issued the certification shall promptly disclose to the
requisition plan or carrier information on coverage of classes and categories
of health benefits available under that entity's plan or coverage, and the
entity may charge the requesting plan or carrier for the reasonable cost of
disclosing the information.
(6) Failure of an
entity to provide information under this subsection with respect to previous
coverage of an individual so as to adversely affect any subsequent coverage of
the individual under another group health plan or health insurance coverage, as
determined in accordance with rules and regulations established by the
secretary of the United States Department of Health and Human Services, is a
violation of this chapter.
(j) A group health
plan and a health insurance carrier offering group health insurance coverage in
connection with a group health plan shall permit an employee who is eligible,
but not enrolled, for coverage under the terms of the plan (or a dependent of
an employee if the dependent is eligible, but not enrolled, for coverage under
the terms) to enroll for coverage under the terms of the plan if each of the
following conditions are met:
(1) The employee or
dependent was covered under a group health plan or had health insurance coverage
at the time coverage was previously offered to the employee or dependent;
(2) The employee
stated in writing at the time that coverage under a group health plan or health
insurance coverage was the reason for declining enrollment, but only if the plan
sponsor or carrier (if applicable) required a statement at the time and
provided the employee with notice of that requirement (and the consequences of
the requirement) at the time;
(3) The employee's or
dependent's coverage described in subsection (j)(1):
(i) Was under a COBRA
continuation provision and the coverage under that provision was exhausted; or
(ii) Was not under a
continuation provision and either the coverage was terminated as a result of
loss of eligibility for the coverage (including as a result of legal
separation, divorce, death, termination of employment, or reduction in the
number of hours of employment) or employer contributions towards the coverage
were terminated; and
(4) Under the terms
of the plan, the employee requests enrollment not later than thirty (30) days
after the date of exhaustion of coverage described in subparagraph paragraph
(3)(i) of this subsection or termination of coverage or employer
contribution described in subparagraph paragraph (3)(ii) of
this subsection.
(k) (1) If a group
health plan makes coverage available with respect to a dependent of an
individual, the individual is a participant under the plan (or has met any
waiting period applicable to becoming a participant under the plan and is
eligible to be enrolled under the plan but for a failure to enroll during a
previous enrollment period), and a person becomes a dependent of the individual
through marriage, birth, or adoption or placement through adoption, the group
health plan shall provide for a dependent special enrollment period during
which the person (or, if not otherwise enrolled, the individual) may be
enrolled under the plan as a dependent of the individual, and in the case of
the birth or adoption of a child, the spouse of the individual may be enrolled
as a dependent of the individual if the spouse is otherwise eligible for
coverage.
(2) A dependent
special enrollment period shall be a period of not less than thirty (30) days
and shall begin on the later of:
(i) The date
dependent coverage is made available; or
(ii) The date of the
marriage, birth, or adoption or placement for adoption (as the case may be).
(3) If an individual
seeks to enroll a dependent during the first thirty (30) days of a dependent
special enrollment period, the coverage of the dependent shall become
effective:
(i) In the case of
marriage, not later than the first day of the first month beginning after the
date the completed request for enrollment is received;
(ii) In the case of a
dependent's birth, as of the date of the birth; or
(iii) In the case of
a dependent's adoption or placement for adoption, the date of the adoption or
placement for adoption.
(l) (1) A health
maintenance organization which offers health insurance coverage in connection
with a group health plan and which does not impose any preexisting condition
exclusion allowed under subsection (a) of this section with respect to
any particular coverage option may impose an affiliation period for the
coverage option, but only if that period is applied uniformly without regard to
any health status-related factors, and the period does not exceed two (2)
months (or three (3) months in the case of a late enrollee).
(2) For the purposes
of this subsection, an affiliation shall begin on the enrollment date.
(3) An affiliation
period under a plan shall run concurrently with any waiting period under the
plan.
(4) The director may
approve alternative methods from those described under this subsection to
address adverse selection.
(m) For the purpose
of determining creditable coverage pursuant to this chapter, no period before
July 1, 1996, shall be taken into account. However, individuals who need to
establish creditable coverage for periods before July 1, 1996, and who would
have the coverage credited but for the prohibition in the preceding sentence
may be given credit for creditable coverage for those periods through the
presentation of documents or other means in accordance with any rule or
regulation that may be established by the secretary of the United States
Department of Health and Human Services.
(n) (1) Subject to
subsection (m), subsection (i) applies to events occurring after June 30, 1996.
In no case shall a certification required under subsection (i) of this section
be required to be provided before June 1, 1997.
(2) In the case of
an event occurring after June 30, 1996, and before October 1, 1996, a certification is not required to be
provided under subsection (i) unless an individual (with respect to whom the
certification is otherwise required to be made) requests the certification in
writing.
(3) In the case of an
individual who seeks to establish creditable coverage for any period for which
certification is not required because is it relates to an event
occurring before June 30, 1996, the individual may present other credible
evidence of coverage in order to establish the period of creditable coverage.
The group health plan and a health insurance carrier shall not be subject to
any penalty or enforcement action with respect to the plan's or carrier's
crediting (or not crediting) the coverage if the plan or carrier has sought to
comply in good faith with the applicable requirements of this section.
27-18.6-7. Collective bargaining agreements. -- (a) Notwithstanding anything contained in
this chapter to the contrary, except as provided in § 27-18.6-3(n), in the case
of a group health plan maintained pursuant to one or more collective bargaining
agreements between employee representatives and one or more employers ratified
before the date of the enactment of this chapter [July 13, 2000,],
this chapter does not apply to plan years beginning before the later of:
(1) The date on which
the last of the collective bargaining agreements relating to the plan
terminates (determined without regard to any extension of the collective
bargaining agreement agreed to after the date of the enactment of this
chapter [July 13, 2000);]); or
(2) July 1, 1997.
(b) For purposes of
subdivision (a)(1) of this section, any plan amendment made pursuant to
a collective bargaining agreement relating to the plan which amends the plan
solely to conform to any requirement of this chapter shall not be treated as a
termination of the collective bargaining agreement.
SECTION 37. Sections
27-19-9, 27-19-23, 27-19-23.1, 27-19-26, 27-19-27, 27-19-32, 27-19-34,
27-19-34.1, 27-19-35, 27-19-40, 27-19-40.1, 27-19-41, 27-19-44.1, 27-19-48, and
27-19-50 of the General Laws in Chapter 27-19 entitled "Nonprofit Hospital
Service Corporations" are hereby amended to read as follows:
27-19-9. Examination of affairs of corporations. --
It is the duty of the insurance
commissioner to make an examination of the financial condition and methods of
doing business of every nonprofit hospital service corporation. The examination
shall be performed, and the associated costs borne by the company, in
accordance with all of the provisions of § 27-13-1 chapter 13.1 of
this title.
27-19-23. Coverage for infertility. -- (a) Any nonprofit hospital service contract,
plan, or insurance policies here and after delivered, issued for
delivery, or renewed in this state, on or after December 1, 1989, except
contracts providing supplemental coverage to Medicare or other governmental
programs, which includes pregnancy related benefits shall provide coverage for
medically necessary expenses of diagnosis and treatment of infertility. To the
extent that a nonprofit hospital service corporation provides reimbursement for
a test or procedure used in the diagnosis or treatment of conditions other than
infertility, those tests and procedures shall not be excluded from
reimbursement when provided attendant to the diagnosis and treatment of
infertility; provided, that a subscriber copayment, not to exceed twenty
percent (20%), may be required for those programs and/or procedures the sole
purpose of which is the treatment of infertility.
(b) For the purposes
of this section, "infertility" shall mean means the
condition of an otherwise presumably healthy married individual who is unable
to conceive or produce conception during a period of one year.
27-19-23.1. Insurance coverage for post-partum hospital
stays. -- (a) Every individual or group hospital or
medical services plan contract delivered, issued for delivery, as renewed in
this state on or after September 1, 1996, shall provide coverage for a
forty-eight (48) hour time period in a hospital after a vaginal birth and
ninety-six (96) hours for a Cesarean section for a mother and her newly born
child. Any decision to shorten these minimum coverages shall be made by
the attending health care provider in consultation with the mother. The
decision shall be made in accordance with the standards for guidelines for
perinatal care published by the American College of Obstetrics and Gynecology
and the American Academy of Pediatrics. The standards shall be relative to
early discharge, defined as less than forty-eight (48) hours for a vaginal
delivery and ninety-six (96) for a cesarean delivery. In the case of early
discharge, post-delivery care shall include home visits, parent education,
assistance and training in breast or bottle feeding and the performance of any
necessary and appropriate clinical tests or any other tests or services
consistent with the above guidelines.
(b) For the purposes of this section, "attending
health care provider" shall include includes the attending
obstetrician, pediatrician, family practioner, general practitioner, or
certified nurse midwife attending the mother and newly born child.
(c) Any subscriber who is aggrieved by a denial
of benefits to be provided under this section may appeal the denial in
accordance with regulations of the department of health, which have been promulaged
promulgated pursuant to chapter 17.12 of title 23. No policy or plan
covered under this chapter shall terminate the services, reduce capitation
payment, or otherwise penalize an attending physician or other health care
provider who orders care consistent with the provisions of this section.
27-19-26. Drug coverage. -- No group health
insurer subject to the provisions of this chapter that provides coverage for
prescription drugs under a group plan master contract delivered, issued for
delivery, or renewed in this state on or after July 1, 1991, may require
any person covered under the contract to obtain prescription drugs from a mail
order pharmacy as a condition of obtaining benefits for the drugs.
27-19-27. Certified
registered nurse practitioners and psychiatric and mental health nurse clinical
specialists. -- (a) Every individual or group hospital or medical expense insurance policy
or individual or group hospital or medical service plan contract delivered,
issued for delivery, or renewed in this state may through the period ending
January 1, 1995, and thereafter shall provide coverage for the services of
the certified registered nurse practitioner and psychiatric and mental health
nurse clinical specialist practicing in collaboration with or in the employ if
a physician licensed under chapter 37 of title 5 to subscribers, if the
services are within the certified registered nurse practitioner's or
psychiatric and mental health nurse clinical specialist's area of professional
competence as established by education and certification, and are currently
reimbursed when rendered by any other licensed health care provider. No insurer
or hospital or medical service corporation may require signature by any other
health care provider as a condition of reimbursement. No insurer or hospital or
medical service corporation may be required to pay for duplicative services
actually rendered by both a certified nurse practitioner and any other health
care provider.
(b) Nothing in this chapter shall preclude the
conducting of managed care reviews and medical necessity reviews by an insurer
or hospital or medical service corporation or health maintenance organization.
27-19-32. New cancer
therapies - Under investigation.
-- Every individual or group
hospital or medical expense insurance policy or individual or group hospital or
medical service plan contract delivered, issued for delivery or renewed in this
state on or after January 1, 1995, shall provide coverage for new cancer
therapies still under investigation as outlined in this chapter.
27-19-34. Mastectomy
treatment. -- (a) Every individual or group health
insurance contract, plan, or policy delivered, issued for delivery or renewed
in this state on or after January 1, 1997, which provides medical
coverage that includes coverage for physician services in a physician's office,
and every policy which provides major medical or similar comprehensive-type
coverage, shall include coverage for prosthetic devices and/or
reconstructive surgery to restore and achieve symmetry for the patient incident
to a mastectomy. Coverage for prosthetic devices and reconstructive surgery shall
be subject to the deductible and coinsurance conditions applied to the
mastectomy and all other terms and conditions applicable to other benefits. Any
reconstructive surgery under this section must be performed within eighteen
(18) months of the original mastectomy. As used in this section,
"mastectomy" means the removal of all or part of the breast to treat
a breast cancer, tumor, or mass.
(b) Any provision in
any contract issued, amended, delivered or renewed in this state on or after
January 1, 1997, which is in conflict with this section shall be of no
force or effect.
(c)
As used in this section, "prosthetic devices" means and includes the
provisions of initial and subsequent prosthetic devices pursuant to an order of
the patient's physician or surgeon.
(d) Nothing in this
section shall be construed to require an individual or group policy to cover
the surgical procedure known as mastectomy or to prevent the application of
deductible or copayment provisions contained in the policy or plan, nor shall
this section be construed to require that coverage under an individual or group
policy be extended to any other procedures.
(e) Nothing in this
section shall be construed to authorize an insured or plan member to receive
the coverage required by this section if that coverage is furnished by a
nonparticipating provider, unless the insured or plan member is referred to
that provider by a participating physician, nurse practitioner, or certified
nurse midwife providing care.
(f) Nothing in this section shall
preclude the conducting of managed care reviews and medical necessity reviews,
by an insurer, hospital or medical service corporation or health maintenance
organization.
27-19-34.1. Insurance
coverage for mastectomy hospital stays. -- (a) The Rhode Island
General Assembly recongnizes recognizes that breast cancer is a
unique illness with both a physical and emotional impact on patients. Every
individual or group hospital or medical services plan contract delivered,
issued for delivery, as renewed in this state on or after September 1, 1997,
shall provide coverage for a minimum forty-eight (48) hour time period in a
hospital after the surgical procedures known as a mastectomy, and a minimum
twenty-four (24) hours after an axilary node dissection. Any decision to
shorten these minimum coverages shall be made by the attending physician
in consultation with and upon agreement by the patient. If the patient
participates in an early discharge, defined as in-patient care following a
mastectomy that is less than forty-eight (48) hours and in-patient care
following an axilary node dissection that is less than twenty-four (24) hours,
coverage shall include a minimum of one home visit conducted by a physician or
registered nurse.
(b) Any subscriber
who is aggrieved by a denial of benefits to be provided under this section may
appeal the denial in accordance with regulations of the department of health,
which have been promulgated pursuant to chapter 17.12 of title 23. No policy or
plan covered under this chapter shall terminate the services, reduce capitation
payment, or otherwise penalize an attending physician or other health care
provider who orders care consistent with the provisions of this section.
(c) Notice.
All plans subject to this section shall provide notice to each enrollee:
(1) In the next mass
mailing made by the plan to the employee; or
(2) As part of any
informational packet sent to the enrollee.
27-19-35. Diabetes
treatment. -- (a) Every individual or group health
insurance contract, plan, or policy delivered, issued for delivery or renewed
in this state on or after January 1, 1997, which provides medical
coverage that includes coverage for physician services in a physician's office,
and every policy which provides major medical or similar comprehensive-type
coverage, shall include coverage for the following equipment and
supplies for the treatment of insulin treated diabetes, non-insulin treated
diabetes, and gestational diabetes when medically appropriate and prescribed by
a physician: blood glucose monitors and blood glucose monitors for the legally
blind, test strips for glucose monitors and/or visual reading, insulin,
injection aids, cartridges for the legally blind, syringes, insulin pumps and
appurtenances thereto to the pumps, insulin infusion devices, and
oral agents for controlling blood sugar and therapeutic/molded shoes for the
prevention of amputation. Upon the approval of new or improved diabetes
equipment and supplies by the Food and Drug Administration, all policies
governed by this chapter shall guarantee coverage of new diabetes equipment and
supplies when medically appropriate and prescribed by a physician. The policies
shall also include coverage, when medically nessary necessary,
for diabetes self-management education to ensure that persons with diabetes are
instructed in the self-management and treatment of their diabetes, including
information on the nutritional management of diabetes. The coverage for
self-management education and education relating to medical nutrition therapy
shall be limited to medically necessary visits upon the diagnoses of diabetes,
where a physician diagnosis a significant change in the patient's symptoms or
conditions which necessitate changes in a patient's self-management, or where
reeducation or refresher training is necessary. This education, when medically
necessary and prescribed by a physician, may be provided only by the physican
physician or, upon his/her his or her referral to
by an appropriately licensed and certified health care provider and may
be conducted in group settings. Coverage for self-management education and
education relating to medical nutrition therapy shall also include home visits
when medically necessary.
(b) Benefit plans offered by a hospital service corporation may impose copayment
and/or deductibles for the benefits mandated by this chapter, however, in no
instance shall the copayment or deductible amount be greater than the copayment
or deductible amount imposed for other supplies, equipment, or physician office
visits. Benefits for services under this chapter shall be reimbursed in
accordance with the respective principles and mechanisms of reimbursement for
each insurer, hospital, or medical service corporation, or health maintenance
organization.
27-19-40. Third party reimbursement
for services of certain health care workers. -- (a) Every individual or group health insurance
contract, plan or policy delivered, issued or renewed by an insurer or
nonprofit or for profit health service corporation on or after January 1,
1998, which provides benefits to individual subscribers and members within
the state, or to all group members having a principal place of employment
within the state, shall provide benefits for services rendered by a certified
registered nurse anesthetist designated as a certified registered nurse
anesthetist by the board of nurse registration and nursing education; provided,
however, that the following conditions are met:
(1) The certified
registered nurse anesthetist provides certain health care services under the
supervision of anesthesiologists, licensed physicians or licensed dentists in
accordance with § 5-34.2-2(c), which requires substantial specialized
knowledge, judgment and skill related to the administration of anesthesia, including
pre-operative and post-operative assessment of patients; administering
anesthetics, monitoring patients during anesthesia; management of fluids in
intravenous therapy and management of respiratory care; and
(2) The policy or
contract currently provides benefits for identical services rendered by a
provider of health care licensed by the state; and
(3) The certified
registered nurse anesthetist is not a salaried employee of the licensed
hospital or facility for which the nonprofit hospital service corporation has
an alternative contractual relationship to fund the services of a certified
registered nurse anesthetist.
(b) It shall remain within the sole discretion
of the nonprofit hospital service corporation as to which certified registered
nurse anesthetists it shall contract with. Reimbursement shall be provided
according to the respective principles and policies of the nonprofit hospital
service corporation; provided, however, that no nonprofit
hospital service corporation may be required to pay for duplicative services
actually rendered by a certified registered nurse anesthetist and any other
health care provider. Nothing contained herein in this section
shall preclude the nonprofit hospital service corporation from conducting
managed care, medical necessity or utilizaton utilization review.
27-19-40.1. Third party
reimbursement for services of registered nurse first assistants. -- (a) Every individual or group health insurance contract, plan or policy
delivered, issued or renewed by an insurer or nonprofit or for profit health
service corporation on or after January 1, 2000, which provides benefits
to individual subscribers and members within the state, or to all group members
having a principal place of employment within the state, shall provide benefits
for services rendered by a registered nurse first assistant designated as a
registered nurse first assistant provided, however, that the following
conditions are met:
(1) The registered nurse first assistant provides certain health care services under the supervision of a licensed physician; is currently licensed as a registered nurse in Rhode Island; has successfully completed a course in preparing the registered nurse as a first assistant in accordance with the Association of Operating Room Nurses core curriculum guide for the registered nurse first assistant and includes a minimum of one academic year in a college or university with didactic instruction and clinical internship programs; and is certified in perioperative nursing by the Certification Board Perioperative Nursing (minimum of two (2) years perioperative experience);
(2) The policy or
contract currently provides benefits for identical services rendered by a
provider of health care licensed by the state; and
(3) The registered nurse
first assistant is not a salaried employee of the licensed hospital or facility
for which the nonprofit hospital service corporation has an alternative
contractual relationship to fund the services of a registered nurse first
assistant.
(b) It shall remain
within the sole discretion of the nonprofit hospital service corporation as to
which registered nurse first assistant it shall contract with. Reimbursement
shall be provided according to the respective principles and policies of the
nonprofit hospital service corporation; provided, however, that no nonprofit hospital
service corporation may be required to provide direct reimbursement, or pay for
duplicative services actually rendered by a registered nurse first assistant in
surgery and any other health care provider. Nothing contained in this section
precludes the nonprofit hospital service corporations from conducting managed
care, medical necessity or utilization review.
27-19-41. Human leukocyte
antigen testing. -- Every individual or group hospital or medical
services plan contract delivered or renewed in this state on or after March
19, 1998, shall include coverage of the cost for human leukocyte antigen
testing, also referred to as histocompatibility locus antigen testing, for A, B
and DR antigens for utilization in bone marrow transplantation. The testing
must be performed in a facility which that is accredited
by the American Association of Blood Banks or its successors, and is licensed
under the Clinical Laboratory Improvement Act, 42 U.S.C. § 263a, as it may be
from time to time amended. At the time of the testing, the person being tested
must complete and sign an informed consent form which that also
authorizes the results of the test to be used for participation in the National
Marrow Donor Program. The group hospital or medical services plan contract may
limit each subscriber to one of these testings per lifetime.
27-19-44.1. Genetic
information. -- (a) Except as provided in chapter 37.3 of
title 5, insurance administrators, health plans and providers shall be
prohibited from releasing genetic information without prior written
authorization of the individual. Written authorization shall be required for
each disclosure and include to whom the disclosure is being made. An exception
shall exist for those participating in research settings governed by the
federal policy for the protection of human research subjects (also known as
"The Common Rule"). Tests conducted purely for research are excluded
from the definition, as are tests for somatic (as opposed to heritable)
mutations, and testing for forensic purposes.
(b) No individual or
group health insurance contract, plan, or policy delivered, issued for
delivery, or renewed in this state on or after January 1, 2002, which
provides medical coverage that includes coverage for physician services in a
physician's office, and every policy which provides major medical or
similar comprehensive-type coverage excluding disability income, long term care
and insurance supplemental policies which only provide coverage for specified
diseases or other supplemental policies, shall:
(1) Use genetic
information or request for genetic information or the results of genetic
information or other genetic information to reject, deny, limit, cancel, refuse
to renew, increase the rates of, affect the terms or conditions of, or
otherwise affect a group or an individual's health insurance policy, contract,
or plan;
(2)
Request or require genetic information for the purpose of determining whether
or not to issue or renew an individual's health benefits coverage, to set
reimbursement/co-pay levels or determine covered benefits and services;
(3) Release the
results of genetic information without the prior written authorization of the
individual from whom the information was obtained, except in a format whereby
by which individual identifiers are removed, encrypted, or encoded so
that the identity of the individual is not disclosed. A recipient of
information pursuant to this section may use or disclose such the
information solely to carry out the purpose for which the information was
disclosed. Authorization shall be required for each redisclosure. An exception
shall exist for participation in research settings governed by the federal
policy for the protection of human research subjects (also known as "The
Common Rule");
(4) Request or
require information as to whether an individual has genetic information, or
participated in genetic information of any kind, whether for clinical or
research purposes.
(c) For the purposes of this section,
"genetic information" is information about genes, gene product, or
inherited characteristics that may derive from the individual or a family
member.
27-19-48. F.D.A. approved
prescription contraceptive drugs and devices. -- (a) Every individual
or group health insurance contract, plan, or policy that provides prescription
coverage and is delivered, issued for delivery, or renewed in this state on
or after January 1, 2001, shall provide coverage for F.D.A. approved
contraceptive drugs and devices requiring a prescription. Provided, however,
that nothing in this subsection shall be deemed to mandate or require coverage
for the prescription drug RU 486.
(b) Notwithstanding
any other provision of this section, any hospital service corporation may issue
to a religious employer an individual or group health insurance contract, plan,
or policy that excludes coverage for prescription contraceptive methods which
are contrary to the religious employer's bona fide religious tenets.
(c) As used in this
section, "religious employer" means an employer that is a
"church or a qualified church-controlled organization" as defined in
26 U.S.C. § 3121.
(d) Every religious employer that invokes the exemption provided under
this section shall provide written notice to prospective enrollees prior to
enrollment with the plan, listing the contraceptive health care services the
employer refuses to cover for religious reasons.
27-19-50. Termination of
children's benefits. -- (a) Every individual or group health insurance
contract, plan, or policy delivered, issued for delivery, or renewed in this
state on or after January 1, 2001, which provides medical coverage that
includes coverage for physician services in a physician's office, and
every policy which provides major medical or similar comprehensive type
coverage, except for supplemental policies which only provide coverage for
specified diseases and other supplemental policies, shall include a provision
that policyholders shall receive no less than thirty (30) days notice from the
nonprofit hospital service corporation that a child covered as a dependent by
the policyholder is about to lose his or her coverage as a result of reaching
the maximum age for a dependent child and that the child will only continue to
be covered upon documentation being provided of current college enrollment, or
that the child may purchase a conversion policy if he or she is not a college
student.
(b) Nothing in this
section prohibits a nonprofit hospital service corporation from requiring a policyholder
to annually provide proof of a child's current college enrollment in order to
maintain the child's coverage. Provided further, nothing in this section
requires coverage inconsistent with the membership criteria in effect under the
policyholder's health benefits coverage.
SECTION 38. Section
27-19-45 of the General Laws in Chapter 27-19 entitled "Nonprofit Hospital
Service Corporations" is hereby repealed in its entirety.
27-19-45.
Conditions of coverage for new cancer therapies. -- As provided in § 27-19-32, coverage is extended to new cancer therapies
still under investigation when the following circumstances are present:
(1) (a) Treatment is being provided pursuant to
a phase II, III or IV clinical trial which has been approved by the National
Institutes of Health (NIH) in cooperation with the National Cancer Institute
(NCI), community clinical oncology programs; the Food and Drug Administration
in the form of an investigational new drug (IND) exemption; the Department of
Veterans' Affairs; or a qualified nongovernmental research entity as identified
in the guidelines for NCI cancer center support grants;
(2) (b) The proposed therapy has been reviewed
and approved by a qualified institutional review board (IRB);
(3) (c) The facility and personnel providing the
treatment are capable of doing so by virtue of their experience, training, and
volume of patients treated to maintain expertise;
(4) (d) The patients receiving the
investigational treatment meet all protocol requirements;
(5) (e) There is no clearly superior,
noninvestigational alternative to the protocol treatment;
(6) (f) The available clinical or preclinical
data provide a reasonable expectation that the protocol treatment will be at
least as efficacious as the noninvestigational alternative; and
(7) (g) The coverage of new cancer therapy
treatment provided pursuant to a phase II clinical trial is not required for
that portion of that treatment that is provided as part of the phase II clinical
trial and is otherwise funded by a national agency, such as the National Cancer
Institute, the Veteran's Administration, the Department of Defense, or funded
by commercial organizations such as the biotechnical and/or pharmaceutical
industry or manufacturers of medical devices. Any portions of a phase II trial
which are customarily funded by government, biotechnical and/or pharmaceutical
and/or medical device industry sources in Rhode Island or in other states shall
continue to be funded in Rhode Island and coverage pursuant to this section
supplements, does not supplant customary funding.
SECTION 39.
Sections 27-20-5, 27-20-17.1, 27-20-20, 27-20-23, 27-20-29, 27-20-29.1,
27-20-30, 27-20-35, 27-20-35.1, 27-20-36, 27-20-39.1, 27-20-43, and 27-20-45 of
the General Laws in Chapter 27-20 entitled "Nonprofit Medical Service
Corporations" are hereby amended to read as follows:
27-20-5. Contracts with subscribers. -- Each nonprofit medical service corporation
may contract with its subscribers for any medical service as may be from time
to time provided under any nonprofit medical service plan adopted by the
corporation; provided, that:
(1) If any medical service as may be provided
for from time to time shall include service which may be lawfully performed or
rendered by a podiatrist, the contract shall provide for the payment for the
service so performed or rendered by a podiatrist;
(2) provided further, that If any medical
service as may be provided for from time to time shall include service which
may be lawfully performed or rendered by a certified registered nurse
practitioner or psychiatric and mental health nurse clinical specialist, the
contract will provide for the payment for the service so performed or rendered
by a certified registered nurse practitioner or psychiatric and mental health
nurse clinical specialist to subscribers. No nonprofit medical service
corporation may require supervision, signature, or referral by any other health
care provider as a condition of reimbursement to a certified registered nurse
practitioner; provided, that no nonprofit medical service corporation may be
required to pay for duplicative services actually rendered by both a certified
registered nurse practitioner and any other health care provider;
(3) and further provided, that If any
medical service as may be provided for from time to time shall include service
which may be lawfully performed or rendered by a licensed midwife, the contract
delivered, issued for delivery, or renewed in this state on or after January
1991 shall provide for the payment for the service so performed or rendered
by a licensed midwife in accordance with each health insurers' respective
principles and mechanisms of reimbursement credentialing and contracting if
those services are within the licensed midwives' area of professional
competence as defined by regulations promulgated pursuant to § 23-13-9, and are
currently reimbursed when rendered by any other licensed health care provider.
No nonprofit medical service corporation may require supervision, signature, or
referral by any other health care provider as a condition of reimbursement
except when the requirements are also applicable to other categories of health
care providers; provided, no insurer or hospital or medical service corporation
or patient may be required to pay for duplicate services actually rendered by
both a licensed midwife and any other health care provider. Direct payment for
licensed midwives will be contingent upon services rendered in a licensed
health care facility and for services rendered in accordance with rules and
regulations promulgated by the department of health; provided, however, that
this provision shall not prohibit payment for services pursuant to § 42-62-26
or for other services reimbursed by third party payors; and
(4) provided further, that If any medical
service which may be provided for from time to time shall include service which
may be rendered by a counselor in mental health or a therapist in marriage and
family practice, excluding marital and family therapy unless there is an
individual diagnosed with a mental disorder, the contract shall provide for
payment for the service so performed or rendered when deemed medically
necessary by the nonprofit medical service corporation in accordance with its standard
medical management protocols and within the nonprofit medical service
corporation's subscriber contractual limits. In the case of a limited provider
network, it shall remain within the sole discretion of the nonprofit medical
service corporation as to which certified counselors in mental health and
certified therapists in marriage and family practice with which it shall
contract. Nothing contained herein in this subdivision shall
require the nonprofit medical service corporation to provide coverage other
than in conjunction with a related medical illness.
(5) No contract
between a nonprofit medical service corporation and a dentist for the
provisions of services to patients may require that the dentist indemnify or
hold harmless the nonprofit medical service corporation for any expenses and
liabilities, including without limitation, judgments, settlements, attorneys'
fees, court costs, and any associated charges, incurred in connection with any
claim or action brought against the nonprofit medical service corporation based
on the nonprofit medical service corporation's management decisions, or
utilization review provisions for any patient.
27-20-17.1. Insurance coverage for post-partum hospital
stays. -- (a) Every individual or
group hospital or medical services plan contract delivered, issued for
delivery, or renewed in this state on or after September 1, 1996 shall
provide coverage for a forty-eight (48) hour time period in a hospital after a
vaginal birth and ninety-six (96) hours after a Cesarean section for a mother
and her newly born child. Any decision to shorten these minimum coverages shall
be made by the attending health care provider in consultation with the mother.
The decision shall be made in accordance with the standards for guidelines for
perinatal care published by the American College of Obstetrics and Gynecology
and the American Academy of Pediatrics. The standards shall be relative to
early discharge, defined as less than forth-eight (48) hours for a vaginal
delivery and ninety-six (96) for a Cesarean delivery. In the case of early
discharge, post-delivery care shall include, home visits, parent
education, assistance and training in breast or bottle feeding and the
performance of any necessary and appropriate clinical tests or any other tests
or services consistent with the above guidelines.
(b) For the purposes
of this section, "attending health care provider" shall
include includes the attending obstetrician, pediatrician, family
practitioner, general practitioner or certified nurse midwife attending the
mother and newly born child.
(c) Any
subscriber who is aggrieved by a denial of benefits to be provided under this
section may appeal the denial in accordance with regulations of the department
of health, which have been promulgated pursuant to chapter 17.12 of title 23.
No policy or plan covered under this chapter shall terminate the services,
reduce capitation payment, or otherwise penalize an attending physician or
other health care provider who orders care consistent with the provisions of
this section.
27-20-20. Coverage for infertility. -- (a) Any nonprofit medical service contract,
plan, or insurance policies here and after delivered, issued for
delivery, or renewed in this state, on or after December 1, 1989,
except contracts providing supplemental coverage to Medicare or other
governmental programs, which includes pregnancy related benefits shall provide
coverage for the medically necessary expenses of diagnosis and treatment of
infertility. To the extent that a nonprofit medical service corporation
provides reimbursement for a test or procedure used in the diagnosis or
treatment of conditions other than infertility, those tests and procedures
shall not be excluded from reimbursement when provided attendant to the
diagnosis and treatment of infertility. Provided that, subscriber copayment,
not to exceed twenty percent (20%), may be required for those programs and/or
procedures the sole purpose of which is the treatment of infertility.
(b) For the purposes
of this section, "infertility" shall mean means the
condition of an otherwise presumably healthy married individual who is unable
to conceive or produce conception during a period of one year.
27-20-23. Drug coverage. -- No group health insurer subject to the
provisions of this chapter that provides coverage for prescription drugs under
a group plan master contract delivered, issued for delivery, or renewed in this
state on or after July 1, 1991, may require any person covered under the
contract to obtain prescription drugs from a mail order pharmacy as a condition
of obtaining benefits for the drugs.
27-20-29. Mastectomy treatment. -- (a) Every individual or group health
insurance contract, plan or policy delivered, issued for delivery or renewed in
this state on or after January 1, 1997, which provides medical coverage
that includes coverage for physician services in a physician's office,
and every policy which provides major medical or similar comprehensive-type
coverage, shall include coverage for prosthetic devices or reconstructive
surgery to restore and achieve symmetry for the patient incident to a
mastectomy. Coverage for prosthetic devices and reconstructive surgery shall be
subject to the deductible and coinsurance conditions applied to the mastectomy
and all other terms and conditions applicable to other benefits. Any
reconstructive surgery under this section must be performed within eighteen
(18) months of the original mastectomy. As used in this section,
"mastectomy" means the removal of all or part of the breast to treat
a breast cancer, tumor, or mass.
(b) Any provision in
any contract issued, amended, delivered or renewed in this state on or after
January 1, 1997, which is in conflict with this section shall be of no
force or effect.
(c) As used in this
section, "prosthetic devices" means and includes the provision of
initial and subsequent prosthetic devices pursuant to an order of the patient's
physician or surgeon.
(d)
Nothing in this section shall be construed to require an individual or group
policy to cover the surgical procedure known as mastectomy or to prevent the
application of deductible or copayment provisions contained in the policy or
plan, nor shall this section be construed to require that coverage under an
individual or group policy be extended to any other procedures.
(e) Nothing in this
section shall be construed to authorize an insured or plan member to receive
the coverage required by this section if that coverage is furnished by a
nonparticipating provider, unless the insured or plan member is referred to
that provider by a participating physician, nurse practitioner, or certified
nurse midwife providing care.
(f) Nothing in this section shall preclude the conducting of managed care
reviews and medical necessity reviews, by an insurer, hospital or
medical service corporation or health maintenance organization.
27-20-29.1. Insurance coverage for mastectomy hospital stays.--
(a) The Rhode Island General
Assembly recongnizes recognizes that breast cancer is a unique
illness with both a physical and emotional impact on patients. Every individual
or group hospital or medical services plan contract delivered, issued for
delivery, or renewed in this state on or after September 1, 1997, shall
provide coverage for a minimum forty-eight (48) hour time period in a hospital
after the surgical procedures known as a mastectomy, and a minimum twenty-four
(24) hours after an axilary node dissection. Any decision to shorten these
minimum coverages shall be made by the attending physician in consultation with
and upon agreement by the patient. If the patient participates in an early
discharge, defined as in-patient care following a mastectomy that is less than
forty-eight hours and in-patient care following an axilary node dissection that
is less than twenty-four (24) hours, coverage shall include a minimum of one
home visit conducted by a physician or registered nurse.
(b) Any subscriber
who is aggrieved by a denial of benefits to be provided under this section may
appeal the denial in accordance with regulations of the department of health,
which have been promulgated pursuant to chapter 23 of title 17.12. No policy or
plan covered under this chapter shall terminate the services, reduce capitation
payment, or otherwise penalize an attending physician or other health care
provider who orders care consistent with the provisions of this section.
(c) Notice.
All plans subject to this section shall provide notice to each enrollee:
(1) In the next mass
mailing made by the plan to the employee; or
(2) As part of any
informational packet sent to the enrollee.
27-20-30. Diabetes treatment. -- (a) Every individual or group health
insurance contract, plan, or policy delivered, issued for delivery or renewed
in this state on or after January 1, 1997, which provides medical
coverage that includes coverage for physician services in a physician's office,
and every policy which provides major medical or similar comprehensive-type
coverage, shall include coverage for the following equipment and
supplies for the treatment of insulin treated diabetes, non-insulin treated
diabetes, and gestational diabetes when medically appropriate and prescribed by
a physician: blood glucose monitors and blood glucose monitors for the legally
blind, test strips for glucose monitors and/or visual reading, insulin,
injection aids, cartidges cartridges for the legally blind,
syringes, insulin pumps, and appurtenances thereto to the pumps,
insulin infusion devices, and oral agents for controlling blood sugar and
therapeutic/molded shoes for the prevention of amputation. Upon the approval of
new or improved diabetes equipment and supplies by the Food and Drug
Administration, all policies governed by this chapter shall guarantee coverage
of new diabetes equipment and supplies when medically appropriate and
prescribed by a physician. These policies shall also include coverage, when
medically necessary, for diabetes self-management education to ensure that
persons with diabetes are instructed in the self-management and treatment of
their diabetes, including information on the nutritional management of
diabetes. The coverage for self-management education and education relating to
medical nutrition therapy shall be limited to medically necessary visits upon
the diagnosis of diabetes, where a physician diagnosis a significant change in
the patient's symptoms or conditions which necessitate changes in a patient's
self-management, or where reeducation or refresher training is necessary. This
education, when medically necessary and prescribed by a physician, may be
provided only by the physican physician or, upon his/her his
or her referral, to an appropriately licensed and certified health care
provider, and may be conducted in group settings. Coverage for self-management
education and education relating to medical nutrition therapy shall also
include home visits when medically necessary.
(b) Benefit plans
offered by a hospital service corporation may impose copayment and/or
deductibles for the benefits mandated by this chapter, however, in no instance
shall the copayment or deductible amount be greater than the copayment or
deductible amount imposed for other supplies, equipment, or physician office
visits. Benefits for services under this chapter shall be reimbursed in
accordance with the respective principles and mechanisms of reimbursement for
each insurer, hospital, or medical service corporation, or health maintenance
organization.
27-20-35. Third party reimbursement for services of
certain health care workers. -- (a) Every individual or group health
insurance contract, plan or policy delivered, issued or renewed by an insurer
or nonprofit or for profit health service corporation on or after January 1,
1998, which provides benefits to individual subscribers and members within
the state, or to all group members having a principal place of employment
within the state, shall provide benefits for services rendered by a certified
registered nurse anesthetist designated as a certified registered nurse
anesthetist by the board of nurse registration and nursing education; provided,
however, that the following conditions are met:
(1) The certified registered nurse anesthetist provides
certain health care services under the supervision of anesthesiologists,
licensed physicians or licensed dentists in accordance with § 5-34.2-2(c),
which requires substantial specialized knowledge, judgment and skill related to
the administration of anesthesia, including pre-operative and post-operative
assessment of patients; administering anesthetics; monitoring patients during
anesthesia; management of fluids in intravenous therapy and management of
respiratory care; and
(2) The policy or contract currently provides benefits for identical services rendered by a provider of health care licensed by the state; and
(3) The certified registered nurse anesthetist is not a salaried employee of the licensed hospital or facility for which the nonprofit medical service corporation has an alternative contractual relationship to fund the services of a certified registered nurse anesthetist.
(b) It shall remain within the
sole discretion of the nonprofit medical service corporation as to which
certified registered nurse anesthetists it shall contract with. Reimbursement
shall be provided according to the respective principles and policies of the
nonprofit medical service corporation; provided, however, that no nonprofit
medical service corporation may be required to pay for duplicative services
actually rendered by a certified registered nurse anesthetist and any other
health care provider. Nothing contained herein in this section
shall preclude the nonprofit medical service corporation from conducting
managed care, medical necessity or utilizaton utilization review.
`27-20-35.1. Third party
reimbursement for services of registered nurse first assistants. -- (a) Every individual or group health
insurance contract, plan or policy delivered, issued or renewed by an insurer
or nonprofit or for profit health service corporation on or after January 1,
2000, which provides benefits to individual subscribers and members within
the state, or to all group members having a principal place of employment
within the state, shall provide benefits for services rendered by a registered
nurse first assistant, provided, however, that the following conditions are
met:
(1) The registered
nurse first assistant provides certain health care services under the
supervision of a licensed physician; is currently licensed as a registered
nurse in Rhode Island; has successfully completed a course in preparing the
registered nurse as a first assistant in accordance with the Association of
Operating Room Nurses core curriculum guide for the registered nurse first
assistant and includes a minimum of one academic year in a college or
university with didactic instruction and clinical internship programs; and is
certified in perioperative nursing by the Certification Board of Perioperative
Nursing (minimum of two years perioperative experience);
(2) The policy or
contract currently provides benefits for identical services rendered by a
provider of health care licensed by the state; and
(3) The registered
nurse first assistant is not a salaried employee of the licensed hospital or
facility for which the nonprofit hospital service corporation has an
alternative contractual relationship to fund the services of a registered nurse
first assistant.
(b) It remains within the sole discretion of the nonprofit medical
service corporation as to which registered nurse first assistant in surgery it
contracts with. Reimbursement is provided according to the respective
principles and policies of the nonprofit medical service corporation: provided,
however, that no nonprofit medical service corporation is required to provide
direct reimbursement, or pay for duplicative services actually rendered by a
registered nurse first assistant and any other health care provider. Nothing
contained in this section precludes the nonprofit medical service corporations
from conducting managed care, medical necessity or utilization review.
27-20-36. Human leukocyte
antigen testing. -- Every individual or group hospital or medical
services plan contract delivered or renewed in this state on or after March
19, 1998, shall include coverage of the cost for human leukocyte antigen
testing, also referred to as histocompatibility locus antigen testing, for A,
B, and DR antigens for utilization in bone marrow transplantation. The testing
must be performed in a facility which is accredited by the American Association
of Blood Banks or its successors, and is licensed under the Clinical Laboratory
Improvement Act, 42 U.S.C. § 263a, as it may be from time to time amended. At
the time of the testing, the person being tested must complete and sign an
informed consent form which also authorizes the results of the test to be used
for participation in the National Marrow Donor Program. The group hospital or
medical services plan contract may limit each subscriber to one of these
testings per lifetime.
27-20-39.1. Genetic
information. -- (a) Except as provided in chapter 37.3 of
title 5, insurance administrators, health plans and providers shall be
prohibited from releasing genetic information without prior written
authorization of the individual. Written authorization shall be required for
each disclosure and include to whom the disclosure is being made. An exception
shall exist for those participating in research settings governed by the
federal policy for the protection of human research subjects (also known as
"The Common Rule"). Tests conducted purely for research are excluded
from the definition, as are tests for somatic (as opposed to heritable)
mutations, and testing for forensic purposes.
(b) No individual or
group health insurance contract, plan, or policy delivered, issued for
delivery, or renewed in this state on or after January 1, 2002, which
provides medical coverage that includes coverage for physician services in a
physician's office, and every policy which provides major medical or
similar comprehensive-type coverage excluding disability income, long term care
and insurance supplemental policies which only provide coverage for specified
diseases or other supplemental policies, shall:
(1) Use genetic
information or request for genetic information or the results of genetic
information or other genetic information to reject, deny, limit, cancel, refuse
to renew, increase the rates of, affect the terms or conditions of, or
otherwise affect a group or an individual's health insurance policy, contract,
or plan;
(2) Request or
require genetic information for the purpose of determining whether or not to
issue or renew a group or individual's health benefits coverage, to set
reimbursement/co-pay levels or determine covered benefits and services;
(3) Release the
results of genetic information without the prior written authorization of the
individual from whom the information was obtained, except in a format whereby
by which individual identifiers are removed, encrypted, or encoded so
that the identity of the individual is not disclosed. A recipient of
information pursuant to this section may use or disclose the information solely
to carry out the purpose for which the information was disclosed. Authorization
shall be required for each redisclosure. An exception shall exist for
participation in research settings governed by the federal policy for the
protection of human research subjects (also known as "The Common
Rule");
(4) Request or
require information as to whether an individual has genetic information, or
participated in genetic information of any kind, whether for clinical or
research purposes.
(c) For the purposes of this section,
"genetic information" is information about genes, gene product, or
inherited characteristics that may derive from the individual or a family
member.
27-20-43. F.D.A. approved
prescription contraceptive drugs and devices. -- (a) Every individual or
group health insurance contract, plan, or policy that provides prescription
coverage and is delivered, issued for delivery, or renewed in this state on
or after January 1, 2001, shall provide coverage for F.D.A. approved
contraceptive drugs and devices requiring a prescription. Provided, however,
that nothing in this subsection shall be deemed to mandate or require coverage
for the prescription drug RU 486.
(b) Notwithstanding
any other provision of this section, any medical service corporation may issue
to a religious employer an individual or group health insurance contract, plan,
or policy that excludes coverage for prescription contraceptive methods which
are contrary to the religious employer's bona fide religious tenets.
(c) As used in this
section, "religious employer" means an employer that is a
"church or a qualified church-controlled organization" as defined in
26 U.S.C. § 3121.
(d) Every religious employer
that invokes the exemption provided under this section shall provide written
notice to prospective enrollees prior to enrollment with the plan, listing the
contraceptive health care services the employer refuses to cover for religious
reasons.
27-20-45. Termination of
children's benefits. -- (a) Every individual or group health
insurance contract, plan, or policy delivered, issued for delivery, or renewed
in this state on or after January 1, 2001, which provides medical
coverage that includes coverage for physician services in a physician's office,
and every policy which provides major medical or similar comprehensive type
coverage, except for supplemental policies which only provide coverage for
specified diseases and other supplemental policies, shall include a provision
that policyholders shall receive no less than thirty (30) days notice from the
nonprofit medical service corporation that a child covered as a dependent by
the policyholder is about to lose his or her coverage as a result of reaching
the maximum age for a dependent child and that the child will only continue to
be covered upon documentation being provided of current college enrollment, or
that the child may purchase a conversion policy if he or she is not a college
student.
(b) Nothing in this
section prohibits a nonprofit medical service corporation from requiring a
policyholder to annually provide proof of a child's current college enrollment
in order to maintain the child's coverage. Provided further, nothing in this
section requires coverage inconsistent with the membership criteria in effect
under the policyholder's health benefits coverage.
SECTION 40.
Section 27-20.1-17 of the General Laws in Chapter 27-20.1 entitled
"Nonprofit Dental Service Corporations" is hereby amended to read as
follows:
27-20.1-17. Termination of
children's benefits. -- (a) Every individual or group health
insurance contract, plan, or policy delivered, issued for delivery, or renewed
in this state on or after January 1, 2001, which provides medical coverage
that includes coverage for physician services in a physician's office,
and every policy which provides major medical or similar comprehensive type
coverage, except for supplemental policies which only provide coverage for
specified diseases and other supplemental policies, shall include a provision
that policyholders shall receive no less than thirty (30) days notice from the
nonprofit dental service corporation that a child covered as a dependent by the
policyholder is about to lose his or her coverage as a result of reaching the
maximum age for a dependent child and that the child will only continue to be
covered upon documentation being provided of current college enrollment, or
that the child may purchase a conversion policy if he or she is not a college
student.
(b) Nothing in this
section prohibits a nonprofit dental service corporation from requiring a
policyholder to annually provide proof of a child's current college enrollment
in order to maintain the child's coverage. Provided further, nothing in this
section requires coverage inconsistent with the membership criteria in effect
under the policyholder's health benefits coverage.
SECTION 41.
Sections 27-20.2-9 and 27-20.2-14 of the General Laws in Chapter 27-20.2
entitled "Nonprofit Optometric Service Corporations" are hereby
amended to read as follows:
27-20.2-9. Adoption of
chapter by hospital service corporation -- Any nonprofit hospital
service corporation organized pursuant to the provisions of chapter 19 of this
title, which first obtains authorization to do so by the Rhode Island
Optometric Association as evidenced by the affidavit of the president and
secretary of the society association, may amend its articles of
association to adopt the provisions of this chapter, and thereupon upon
that adoption the corporation shall have and exercise all of the powers and
be subject to all of the duties and responsibilities of a nonprofit optometric
service corporation to the same extent as though it had been incorporated as a
nonprofit optometric service corporation.
27-20.2-14. Termination of
children's benefits. -- (a) Every individual or group health
insurance contract, plan, or policy delivered, issued for delivery, or renewed
in this state on or after January 1, 2001, which provides medical coverage
that includes coverage for physician services in a physician's office,
and every policy which provides major medical or similar comprehensive type
coverage, except for supplemental policies which only provide coverage for
specified diseases and other supplemental policies, shall include a provision
that policyholders shall receive thirty (30) days notice from the nonprofit
optometric service corporation that a child covered as a dependent by the
policyholder is about to lose his or her coverage as a result of reaching the
maximum age for a dependent child and that the child will only continue to be
covered upon documentation being provided of current college enrollment, or
that the child may purchase a conversion policy if he or she is not a college student.
(b) Nothing in this
section prohibits a nonprofit optometric service corporation from requiring a
policyholder to annually provide proof of a child's current college enrollment
in order to maintain the child's coverage. Provided further, nothing in this
section requires coverage inconsistent with the membership criteria in effect
under the policyholder's health benefits coverage.
SECTION 42. Section
27-20.6-6 of the General Laws in Chapter 27-20.6 entitled "Health Care
Insurers - Coordination of Benefits" is hereby amended to read as follows:
27-20.6-6. Rules and
regulations. -- On or before October 1, 1989, The director of the department of business
regulation shall, upon twenty (20) days prior notice published in the
Providence Journal, hold a hearing to consider promulgating promulgate
rules and regulations, using the NAIC coordination of benefits model
regulations as a guideline, which shall address: (1) the necessity and/or
reasonableness of administrative penalties by entities subject to this chapter;
(2) other procedures which may be necessary to carry out the provisions of this
chapter.
SECTION 43. Section 27-20-40 of the General Laws in Chapter 27-20
entitled "Nonprofit Medical Service Corporations" is hereby repealed
in its entirety.
27-20-40. Conditions of
coverage. -- As provided in § 27-20-27, coverage is
extended to new cancer therapies still under investigation when the following
circumstances are present:
(a) Treatment is being provided pursuant to a
phase II, III or IV clinical trial which has been approved by the National
Institutes of Health (NIH) in cooperation with the National Cancer Institute
(NCI), community clinical oncology programs; the Food and Drug Administration
in the form of an investigational new drug (IND) exemption; the Department of
Veterans' Affairs; or a qualified nongovernmental research entity as identified
in the guidelines for NCI cancer center support grants;
(b) The proposed therapy has been reviewed
and approved by a qualified institutional review board (IRB);
(c) The facility and personnel providing the
treatment are capable of doing so by virtue of their experience, training, and
volume of patients treated to maintain expertise;
(d) The patients receiving the
investigational treatment meet all protocol requirements;
(e) There is no clearly superior,
noninvestigational alternative to the protocol treatment;
(f) The available clinical or preclinical
data provide a reasonable expectation that the protocol treatment will be at
least as efficacious as the noninvestigational alternative; and
(g) The coverage of new cancer therapy
treatment provided pursuant to a phase II clinical trial is not required for
only that portion of that treatment as is provided as part of the phase II
clinical trial and is otherwise funded by a national agency, such as the
National Cancer Institute, the Veteran's Administration, the Department of
Defense, or funded by commercial organizations such as the biotechnical and/or
pharmaceutical industry or manufacturers of medical devices. Any portions of a
phase II trial which are customarily funded by government, biotechnical and/or
pharmaceutical and/or medical device industry sources in Rhode Island or in
other states shall continue to be funded in Rhode Island and coverage pursuant
to this section supplements, does not supplant customary funding.
SECTION
44. Section 27-18-4 of the General Laws in Chapter 27-18 entilted
"Accident and Sickness Insurance Policies" is hereby amended to read
as follows:
27-18-4. Optional
provisions. -- Except as provided in § 27-18-5, no policy
delivered or issued for delivery to any person in this state shall contain
provisions respecting the matters set forth below in this section unless the
provisions are in the words in which they appear in this section; provided, however,
that the insurer may, at its option, use in lieu of any provision a
corresponding provision of different wording approved by the commissioner which
is not less favorable in any respect to the insured or the beneficiary. The
provision contained in the policy shall be preceded individually by the
appropriate caption appearing in this section or, at the option of the insurer,
by any appropriate individual or group captions or subcaptions as the
commissioner may approve:
(1) A provision as
follows:
"CHANGE OF OCCUPATION: If the insured be
is injured or contracts sickness after having changed his or her
occupation to one classified by the insurer as more hazardous than that stated in
this policy or while doing for compensation anything pertaining to an
occupation so classified, the insurer will pay only that portion of the
indemnities provided in this policy as the premium paid would have purchased at
the rates and within the limits fixed by the insurer for the more hazardous
occupation. If the insured changes his or her occupation to one classified by
the insurer as less hazardous than that stated in this policy, the insurer,
upon receipt of proof of the change of occupation, will reduce the premium rate
accordingly, and will return the excess pro rata unearned premium from the date
of change of occupation or from the policy anniversary date immediately
preceding receipt of the proof, whichever is the more recent. In applying this provision,
the classification of occupational risk and the premium rates shall be such as
have been last filed by the insurer, prior to the occurrence of the loss for
which the insurer is liable or prior to the date of proof of change in
occupation, with the state official having supervision of insurance in the
state where the insured resided at the time this policy was issued; but, if the
filing was not required, then the classification of occupational risk and the
premium rates shall be those last made effective by the insurer in the state
prior to the occurrence of the loss or prior to the date of proof of change in
occupation."
(2) A provision as
follows:
"MISSTATEMENT OF AGE: If the age of the
insured has been misstated, all amounts payable under this policy shall be such
as the premium paid would have purchased at the correct age."
(3) A provision as
follows:
"OTHER INSURANCE IN THIS INSURER: If an
accident or sickness or accident and sickness policy or policies previously
issued by the insurer to the insured be is in force concurrently herewith
with this policy, making the aggregate indemnity for . . . . . . . . . .
." (insert type of coverage or coverages) "in excess of $. . . . . .
. ." (insert maximum limit of indemnity or indemnities) "the excess insurance
shall be void and all premiums paid for the excess shall be returned to the
insured or to his or her estate," or, in lieu thereof:
"Insurance effective at any one time on
the insured under a like policy or policies in this insurer is limited to the
one such policy elected by the insured, his or her beneficiary or his or her
estate, as the case may be, and the insurer will return all premiums
paid for all other like policies."
(4) A provision as
follows:
"INSURANCE WITH OTHER INSURERS: If there
be is other valid coverage, not with this insurer, providing
benefits for the same loss on a provision of service basis or on an expense
incurred basis and of which this insurer has not been given written notice
prior to the occurrence or commencement of loss, the only liability under any
expense incurred coverage of this policy shall be for the proportion of the
loss as the amount which would otherwise have been payable hereunder plus the
total of the like amounts under all the other valid coverages for the same loss
of which this insurer had notice bears to the total like amounts under all
valid coverages for the loss, and for the return of the portion of the premiums
paid as shall exceed the pro rata portion for the amount so determined. For the
purpose of applying this provision when other coverage is on a provision of
service basis, the "like amount" of the other coverage shall be taken
as the amount which the services rendered would have cost in the absence of the
coverage."
(If the foregoing
this policy provision is included in a policy which also contains the
next following policy provision, there shall be added to the caption of the
foregoing this provision the phrase " - EXPENSE INCURRED
BENEFITS." The insurer may, at its option, include in this provision a
definition of "other valid coverage", approved as to form by the
commissioner, which definition shall be limited in subject matter to coverage
provided by organizations subject to regulation by insurance law or by
insurance authorities of this or any other state of the United States or any
province of Canada, and by hospital or medical service organizations, and to
any other coverage the inclusion of which may be approved by the commissioner.
In the absence of the definition, the term shall not include group insurance,
automobile medical payments insurance, or coverage provided by hospital or
medical service organizations or by union welfare plans or employer or employee
benefit organizations. For the purpose of applying the foregoing this
policy provision with respect to any insured, any amount of benefit
provided for the insured pursuant to any compulsory benefit statute, including
any workers' compensation or employer's liability statute, whether provided by
a governmental agency or otherwise, shall in all cases be deemed to be
"other valid coverage" of which the insurer has had notice. In
applying the foregoing this policy provision, no third party
liability coverage shall be included as "other valid coverage".)
(5) A provision as
follows:
"INSURANCE WITH OTHER INSURERS: If there
be is other valid coverage, not with this insurer, providing
benefits for the same loss on other than an expense incurred basis and of which
this insurer has not been given written notice prior to the occurrence or commencement
of loss, the only liability for those benefits under this policy shall be for
the proportion of the indemnities otherwise provided hereunder for the
loss as the like indemnities of which the insurer had notice (including the
indemnities under this policy) bear to the total amount of all like indemnities
for the loss, and for the return of the portion of the premium paid as shall
exceed the pro rata portion for the indemnities thus determined."
(If the foregoing
this policy provision is included in a policy which also contains the
next preceding policy provision, there shall be added to the caption of the
foregoing this provision the phrase " - OTHER BENEFITS."
The insurer may, at its option, include in this provision a definition of
"other valid coverage", approved as to form by the commissioner,
which definition shall be limited in subject matter to coverage provided by
organizations subject to regulation by insurance law or by insurance
authorities of this or any other state of the United States or any province of
Canada, and to any other coverage the inclusion of which may be approved by the
commissioner. In the absence of the definition, such term shall not include
group insurance, or benefits provided by union welfare plans or by employer or
employee benefit organizations. For the purpose of applying the foregoing
this policy provision with respect to any insured, any amount of benefit
provided for the insured pursuant to any compulsory benefit statute, including
any workers' compensation or employer's liability statute, whether provided by
a governmental agency or otherwise, shall in all cases be deemed to be
"other valid coverage" of which the insurer has had notice. In
applying the foregoing this policy provision, no third party
liability coverage shall be included as "other valid coverage".)
(6) A provision as
follows:
"RELATION OF EARNINGS TO INSURANCE: If
the total monthly amount of loss of time benefits promised for the same loss
under all valid loss of time coverage upon the insured, whether payable on a
weekly or monthly basis, shall exceed the monthly earnings of the insured at
the time disability commenced or his or her average monthly earnings for the
period of two (2) years immediately preceding a disability for which claim is
made, whichever is the greater, the insurer will be liable only for the
proportionate amount of the benefits under this policy as the amount of the
monthly earnings or the average monthly earnings of the insured bears to the
total amount of monthly benefits for the same loss under all the coverage upon
the insured at the time the disability commences, and for the return of the
part of the premiums paid during the two (2) years that exceeds the pro rata
amount of the premiums for the benefits actually paid under this policy; but
this shall not operate to reduce the total monthly amount of benefits payable
under all the coverage upon the insured below the sum of two hundred dollars
($200) or the sum of the monthly benefits specified in the coverages,
whichever is the lesser, nor shall it operate to reduce benefits other than
those payable for loss of time."
(The foregoing
This policy provision may be inserted only in a policy which the insured
has the right to continue in force subject to its terms by the timely payment
of premiums: (A) (i) until at least age fifty (50);
or, (B) (ii) in the case of a policy issued after age
forty-four (44), for at least five (5) years from its date of issue. The
insurer may, at its option, include in this provision a definition of "valid
loss of time coverage", approved as to form by the commissioner, which
definition shall be limited in subject matter to coverage provided by
governmental agencies or by organizations subject to regulation by insurance
law or by insurance authorities of this or any other state of the United States
or any province of Canada, or to any other coverage the inclusion of which may
be approved by the commissioner or any combination of those this coverages.
In the absence of a definition, the term shall not include any coverage
provided for the insured pursuant to any compulsory benefit statute, including
any workers' compensation or employer's liability statute, or benefits provided
by union welfare plans or by employer or employee benefit organizations.)
(7) A provision as
follows:
"UNPAID PREMIUM: Upon the payment of a
claim under this policy, any premium then due and unpaid or covered by
any note or written order may be deducted therefrom from the payment."
(8) A provision as
follows:
"CANCELATION CANCELLATION:
The insurer may cancel this policy at any time by written notice delivered to
the insured, or mailed to his or her last address as shown by the records of
the insurer, stating when, not less than ten (10) days thereafter after
this, the cancelation cancellation shall be effective; and,
after the policy has been continued beyond its original term, the insured may
cancel this policy at any time by written notice delivered or mailed to the
insurer, effective upon receipt or on a later date as may be specified in the
notice. In the event of cancellation cancellation, the insurer
will return promptly the unearned portion of any premium paid. If the insured
cancels, the earned premium shall be computed by the use of the short-rate
table last filed with the state official having supervision of insurance in the
state where the insured resided when the policy was issued. If the insurer
cancels, the earned premium shall be computed pro rata. Cancelation Cancellation
shall be without prejudice to any claim originating prior to the effective
date of cancellation cancellation."
(9) A provision as
follows:
"CONFORMITY WITH STATE STATUTE: Any
provision of this policy which, on its effective date, is in conflict with the
statutes of the state in which the insured resides on that date, is hereby
amended to conform to the minimum requirements of those statutes."
(10) A provision as
follows:
"ILLEGAL OCCUPATION: The insurer shall
not be liable for any loss to which a contributing cause was the insured's
commission of or attempt to commit a felony or to which a contributing cause
was the insured's being engaged in an illegal occupation."
(11) A provision as
follows:
"INTOXICANTS
AND NARCOTICS: The insurer shall not be liable for any loss sustained or
contracted in consequence of the insured's being intoxicated or under the
influence of any narcotic unless administered on the advice of a
physician."
SECTION 45. Section 21-2-11 of the General Laws in Chapter 21-2
entitled "Milk Sanitation Code" is hereby amended to read as follows:
21-2-11. Emergency powers. -- (a) In the event of any serious disaster, such as conflagration, enemy
attack, earthquake, flood, hurricane, tornado, drought, or other emergency,
which shall result in an unusual nonseasonal shortage in the milk supply in the
state of Rhode Island, the director shall have power, upon issuance of an order
by him or her specifying the nature and extent of such the
emergency and without notice: (1)(a) to suspend part or all of
the regulations made under authority of this chapter; (2)(b) to
promulgate other or additional emergency regulations; and (3)(c)
to suspend part or all of the requirements of this chapter pertaining to
inspection and the obtaining of permits by milk plants located outside the
state of Rhode Island from which milk is derived for sale in the state of Rhode
Island and pertaining to inspection of their milk producers and haulers.;
(b) and In the case of any such
special emergency, the director may issue emergency permits for the importation
of milk into the state of Rhode Island which has not been inspected at the
source in accordance with this statute and the regulations thereunder pursuant
to this chapter; provided, however, that the director shall be satisfied
that any such source of milk so admitted by emergency permit shall not
constitute a threat to the health of the people of Rhode Island, and provided
that environmental conditions surrounding the production, transportation, and
processing of the imported milk shall reasonably have been subject to
inspection at its source under authority of law other than that of the state of
Rhode Island.
(c) The suspension and emergency regulations
shall be for the duration of the emergency or forty (40) days, whichever period
shall be shorter.
(d) The director is further empowered in the
event of any contamination or threat of contamination of the milk supply,
alone to promulgate additional emergency regulations pertaining to the
treatment and conditions of production, distribution, and sale of milk, the
regulations to go into effect forthwith immediately without a
hearing. The emergency regulations shall be in effect forty (40) days or the
duration of the emergency, whichever period shall be shorter. The director
shall promulgate the emergency regulations by filing a copy thereof of
them in the secretary of state's office and having copies available for
public inspection. As soon as practicable, the director shall give notice of
the promulgation of the emergency regulations.
SECTION 46. Section
21-9-13 of the General Laws in Chapter 21-9 entitled "Frozen
Desserts" is hereby amended to read as follows:
21-9-13. Regulations. -- (a) The authority to promulgate regulations for the efficient enforcement
of this chapter is hereby vested in the director of health, and he or
she is hereby authorized to promulgate, among others, regulations,
definitions, and standards which are not inconsistent with the provisions of
this chapter to govern the manufacture, labeling, transportation, advertising,
and sale of frozen desserts and frozen dessert mixes, and the employee health
standards and the sanitary conditions of the buildings, grounds, equipment,
containers, and vehicles where such those products are handled,
manufactured, transported, sold, and/or stored.
(b) Whenever such
the action will promote honesty and fair dealing in the interest of
consumers, the director of health shall promulgate regulations fixing and
establishing for frozen desserts and frozen dessert mixes definitions and
standards of identity and quality and reasonable standards of fill of
containers. In prescribing a definition and standard of identity for frozen
desserts and frozen dessert mixes in which optional ingredients are permitted,
the director of health shall, for the purpose of promoting honesty and fair
dealing in the interest of consumers, designate the optional ingredients which
shall be named on the label.
(c) The definitions
and standards promulgated under the provisions of this chapter shall conform as
far as practicable to the definitions and standards promulgated under the
authority of 21 U.S.C. § 341. which are in effect as of April 19,
1962.
(d) Hearings
authorized or required by this chapter shall be conducted by the director of health
or such any officer, agent, or employee as that the
director of health may designate for the purpose.
(e) The adoption of
regulations shall be in accordance with chapter 35 of title 42.
SECTION 47. Section
21-11-3 of the General Laws in Chapter 21-11 entitled "Meats" is
hereby amended to read as follows:
21-11-3. License required
for processing and packing houses.
-- No person, firm, association, or
corporation shall operate within this state any establishment for the purpose
of slaughtering any animal for human consumption, or for canning, curing,
smoking, salting, packing, rendering, or otherwise handling the carcass of any
animal or part thereof of the carcass, or for the manufacturing
of any meat product or meat food product, until that person, firm, association,
or corporation shall have obtained a license from the state department
of health. This section shall not apply to a retail market offering for sale
only those primal parts commonly known in the trade as sides, quarters,
shoulders, hams, backs, bellies, tongues, livers, or similar parts, or meat,
meat products, or meat food products, which have been obtained from the
establishment of a person, firm, association, or corporation licensed in
accordance with provisions of this section, nor to any retail market as
heretofore defined wherein where meat processing consists solely of
grinding meat for sale on the premises.
SECTION 48. Section 21-16-1 of the General
Laws in Chapter 21-16 entitled "Kosher Foods" is hereby amended to
read as follows:
21-16-1. Violations or
deception as to religious dietary laws by dealers in meats. -- A person, firm, or corporation shall be guilty of a misdemeanor:
(1)(a) Who shall knowingly sell or expose for sale any meat or meat
preparation, either raw or prepared for human consumption, and falsely
represent the same it to be kosher or as having been prepared
under the supervision of a rabbi or as a product or products sanctioned by the
traditional or orthodox Hebrew religious requirements and dietary laws;,
or
(2)(b) Who shall falsely represent any food product or the contents of any
package or container to be so constituted and prepared, by having or permitting
to be inscribed thereon the word "kosher" in any language;,
or
(3)(c) Who shall sell or expose for sale in the same place of business both
kosher and non-kosher meat or meat preparation, either raw or prepared for
human consumption, who fails to indicate on the window signs and all display
advertising, in block letters at least four inches (4”) in height, "kosher
and non-kosher meat sold here"; or
(4)(d) Who shall expose for sale in any show window or place of business both
kosher and non-kosher meat or meat preparation, either raw or prepared for
human consumption, who fails to display over each kind of meat or meat
preparation so exposed a sign in block letters at least four inches (4”) in
height reading "kosher meat" or "non-kosher meat," as the
case may be;, or
(5)(e) Who shall, while dealing or purporting to deal in kosher meat or meat
preparations, prepare or handle or sell, or cause to be prepared or handled or
sold, any food product which, when so prepared or handled or sold together with
kosher meat or meat preparation, constitutes a violation of the traditional or
orthodox Hebrew religious requirements and dietary laws, and thereby render
such by which renders the kosher meat or meat preparation, so
prepared or handled or sold in conjunction therewith, non-kosher;,
or
(6)(f) Who shall otherwise in the preparation, handling, or sale of kosher meat
or meat preparation fail to comply strictly with the religious requirements and
dietary laws necessary to constitute the meat or meat preparation genuinely
kosher;, or
(7)(g) Who shall, without complying with such Hebrew religious or
dietary laws, issue or maintain any sign or advertisement in any language
purporting to represent that he or she sells or deals in kosher meat or meat
preparations;, or
(8)(h) Who shall display on his or her window, door,
or in his or her place of business, words or letters in the Hebrew language, or
any sign, emblem, insignia, symbol, or mark in simulation of Hebrew words or
letters, the display of which might reasonably be calculated to deceive or lead
a person to believe that a representation, express or implied, is being made
that the meat or meat preparation exposed for sale is kosher and in conformity
with the traditional or orthodox Hebrew religious requirements.
SECTION 49. Sections
21-23-3 and 21-23-4 of the General Laws in Chapter 21-23 entitled
"Nonalcoholic Bottled Beverages, Drinks and Juices" are hereby
amended to read as follows:
21-23-3. Suspension or
revocation of permits. -- Permits granted under this chapter may be
suspended or revoked by the department of health for violation of any provision
of this chapter or the regulations promulgated pursuant thereto to
this chapter or of chapter 27 of this title or chapter 31 of this title.
21-23-4. Adoption of
regulations. -- All nonalcoholic beverage, drink, or juice
regulations and any amendments thereto, to them adopted pursuant
to the Federal Food, Drug and Cosmetic Act, [21 U.S.C. §§ 301-392],
which are in effect on May 8, 1979, or which are adopted on or after such date
21 U.S.C. § 301 et seq., are the bottled beverage regulations in this state.
The department may, by regulation, provide for modification or deviation from such
those regulations, whether or not such the modifications
or deviations are in accordance with the regulations adopted pursuant to the
Federal Food, Drug, and Cosmetic Act.
The director of
health is further authorized to adopt any other regulations for bottled
beverages he or she deems necessary in accordance with authority granted under
this chapter, § 21-23-7, chapter 27 of this title and § 23-1-18(5).
SECTION 50. Section
21-5-8 of the general Laws in Chapter 21-5 entitled "Analysis of Milkfat
Content in Milk or Milk Products" is hereby repealed in its entirety.
21-5-8. Inspection. -- The director shall inspect, or cause to be inspected, at least once each year,
each Babcock or other centrifugal machine used within the state of Rhode Island
for the purpose of analysis or inspection of milk.
SECTION
51. Sections 21-24-2 and 21-24-4 of the General Laws in Chapter 21-24 entitled
"Flour and Bread" are hereby amended to read as follows:
21-24-2. Regulations. -- All bakery products, cereal flours, and
related products regulations and any amendments thereto to them
adopted by the federal government pursuant to the Food, Drug, and Cosmetic Act,
CFR 21, Parts 136, entitled "Bakery Products," and 137, entitled
"Cereal Flours and Related Products," on May 11, 1982, or which
are adopted on or after that date, are the regulations in this state. The
department may by regulation provide for modification or deviation from the aforesaid
regulation where the interest of Rhode Island consumers may warrant,
whether or not the modifications or deviations are in accordance with the
regulations adopted pursuant to the Federal Food, Drug, and Cosmetic Act,
[21 U.S.C. §§ 301 to 392 et seq.;],
provided, the amendments do not interfere with interstate commerce. A federal
regulation automatically adopted pursuant to this chapter takes effect in this
state on the date it becomes effective as a federal regulation. The director
shall publish a notice of the adoption in a newspaper having general
circulation throughout the state. A person who may be adversely affected by a
regulation may, within thirty (30) days after a federal regulation is
automatically adopted, file with the director, in writing, objections and a
request for a hearing. The timely filing of substantial objections to a federal
regulation automatically adopted stays the effect of the regulation. If no
substantial objections are received and no hearing is requested within thirty
(30) days after publication of a notice of the adoption of a federal
regulation, it shall be effective as of the date it was adopted by the federal
government. If timely substantial objections are made to a federal regulation
within thirty (30) days after it is automatically adopted, the director, after
notice, shall conduct a public hearing in accordance with the provisions of
chapter 35 of title 42. The director of health is further authorized to adopt
any regulations for bakery products, cereal flours, and related products that
he or she deems necessary in accordance with authority granted under this
chapter, chapter 31 of this title, chapter 27 of this title, and § 23-1-18(5).
` 21-24-4. Enforcement of provisions.
-- Enforcement of this chapter shall be in accordance with the provisions
of §§ 23-1-20 - 23-1-24.
SECTION 52. Section 21-26-1 of the General
Laws in Chapter 21-26 entitled "Soda and Cream of Tartar" is hereby
amended to read as follows:
21-26-1. Appointment of municipal inspectors. -- The city council of Providence shall,
and the town councils of the several cities and towns may,
appoint an inspector of saleratus, bicarbonate of soda, and cream of tartar for
the city cities and towns., respectively.
SECTION
53. Section 21-27.1-3 (Effective until January 7, 2003) and 21-27.1-3
(Effective January 7, 2003) of the General Laws in Chapter 21-27 entitled
"Plastic Recycling and Litter Act" are hereby amended to read as
follows:
21-27.1-3. Plastic recycling and litter commission.
[Effective until January 7, 2003.] -- (a) There is hereby created a permanent commission consisting of
thirteen (13) members: one of whom shall be the director of the department of
environmental management or his or her designee, who shall act as chairperson
of the commission; one of whom shall be the director of the solid waste
management corporation or his or her designee; one of whom shall be the
chairperson of the source reduction task force or his or her designee; one of
whom shall be a state senator appointed by the senate majority leader; one of
whom shall be a state representative appointed by the speaker; one of whom
shall be a representative of the plastic packaging industry, appointed by the
governor; one of whom shall be a distributor of plastic/foam food service
products, appointed by the lieutenant governor; one of whom shall be a retailer
who sells plastic/foam food service products, appointed by the senate majority
leader; one of whom shall be a fast food service representative or owner,
appointed by the speaker; one of whom shall be a representative of a hospital
or hospital organization, appointed by the governor; two (2) of whom shall be
representatives of environmental groups involved with litter issues; one of
whom shall be appointed by the lieutenant governor and the other appointed by
the senate majority leader; one of whom shall be a representative from an
educational institution food service, appointed by the speaker.
(b) The purpose of
the commission shall be to produce a plan which shall be submitted to the
governor and the general assembly on or before January 1, 1991, which plan
will provide for the maximum recycling of plastic and foam food service
products. For those products which cannot be recycled, the commission will
develop guidelines for the use of photodegradable and biodegradable products
wherever feasible. These guidelines would take effect January 1, 1992.
(c) The commission
shall continue thereafter to monitor the plan and guidelines and study
and update its findings and recommendations on a continuing basis.
21-27.1-3. Plastic recycling and litter commission.
[Effective January 7, 2003.] -- (a)
There is hereby created a permanent commission consisting of thirteen
(13) members: one of whom shall be the director of the department of
environmental management or his or her designee, who shall act as chairperson
of the commission; one of whom shall be the director of the solid waste
management corporation or his or her designee; one of whom shall be the
chairperson of the source reduction task force or his or her designee; one of
whom shall be a state senator appointed by the president of the senate; one of
whom shall be a state representative appointed by the speaker; one of whom
shall be a representative of the plastic packaging industry, appointed by the
governor; one of whom shall be a distributor of plastic/foam food service
products, appointed by the lieutenant governor; one of whom shall be a retailer
who sells plastic/foam food service products, appointed by the president of the
senate; one of whom shall be a fast food service representative or owner,
appointed by the speaker; one of whom shall be a representative of a hospital
or hospital organization, appointed by the governor; two (2) of whom shall be
representatives of environmental groups involved with litter issues; one of
whom shall be appointed by the lieutenant governor and the other appointed by
the president of the senate; one of whom shall be a representative from an
educational institution food service, appointed by the speaker.
(b) The purpose of
the commission shall be to produce a plan which shall be submitted to the
governor and the general assembly on or before January 1, 1991, which plan
will provide for the maximum recycling of plastic and foam food service products.
For those products which cannot be recycled, the commission will develop
guidelines for the use of photodegradable and biodegradable products wherever
feasible. These guidelines would take effect January 1, 1992.
(c) The commission
shall continue thereafter to monitor the plan and guidelines and study
and update its findings and recommendations on a continuing basis.
SECTION
54. Sections 28-28-2.10, 21-28-3.05, 21-28-3.18, 21-28-4.01, 21-28-4.15,
21-28-4.17.1, 21-28-5.04, 21-28-5.05, 21-28-5.07, 21-28-5.07.2, 21-28-5.07.3,
21-28-5.07.4, and 21-28-5.07.5 of the General Laws in Chapter 21-28 entitled
"Uniform Controlled Substances Act" are hereby amended to read as
follows:
21-28-2.10. Exemption of
dextromethorphan. -- Dextromethorphan shall not be deemed to be
included in any schedule by reason of enactment of this chapter unless
controlled after the date of such enactment pursuant to the foregoing
provisions of this article.
21-28-3.05. Order to show
cause. -- (a) Before denying, suspending, or revoking a
registration, or refusing a renewal of a registration, the director of health
shall serve upon the applicant or registrant an order to show cause why the
registration should not be denied, revoked, or suspended, or why the renewal
should not be refused. The order to show cause shall contain a statement of the
basis thereof of the order and shall call upon the applicant or
registrant to appear before the director of health at a time and place stated
in the order but in no event less than thirty (30) days after the date of
receipt of the order. Proceedings to deny, suspend, or revoke shall be
conducted pursuant to this section in accordance with chapter 35 of title 42,
( the Administrative Procedures Act.). The proceedings
shall be independent of, and not in lieu of, criminal prosecution or other
proceedings under this chapter or any law of the state.
(b) The director of
health may suspend for a period of ten (10) days any registration
simultaneously with the institution of proceedings under this section in cases
where he or she finds that there is an imminent danger to the public health or
safety. The suspension shall continue in effect until the conclusion
of the proceedings, including judicial review thereof of them, shall
continue in effect until the conclusion, unless sooner withdrawn by the
director of health or dissolved by a court of competent jurisdiction.
21-28-3.18. Prescriptions. -- (a) An apothecary in
good faith may sell and dispense controlled substances in schedule II to any person
upon a written prescription, by a practitioner licensed by law to
prescribe or administer such those substances, dated and signed
by the person prescribing on the day when issued and bearing the full name and
address of the patient to whom, or of the owner of the animal for which the
substance is dispensed and the full name, address and registration number under
the federal law of the person prescribing, if he or she is required by that law
to be so registered. If the prescription is for an animal, it shall state the
species of the animal for which the substance is prescribed.
(b) The apothecary
filling the prescription shall sign his or her full name and shall write the
date of filling on the face of the prescription.
(c) The prescription
shall be retained on file by the proprietor of the pharmacy in which it was
filled for a period of two (2) years so as to be readily accessible for
inspection by any public officer or employee engaged in the enforcement of this
chapter.
(d)(1)
Prescriptions for controlled substances in schedule II shall be filed
separately and shall not be refilled. The form of record for prescription slips
for controlled substances in schedule II shall consist of two (2) parts, an
original and a duplicate which are required to be presented to the pharmacy by
the ultimate user or his or her representative.
Pharmacies dispensing controlled substances
in schedule II are required to deliver to the director of health all duplicate
copies of such the prescriptions on or before the fifth day of
the month following the date of dispensing. The prescription slip shall be a
form provided by the director of health.
(2) The director of health may, after
appropriate notice and hearing pursuant to § 42-35-3, promulgate rules and
regulations for the purpose of adopting a system for electronic data
transmission of prescriptions for controlled substances in schedule II and III,
and needles and syringes. Such a This system, when operational,
shall negate the necessity to utilize the two-part prescription described above
in subdivision (1) of this subsection.
(e) A prescription
for a schedule II narcotic substance to be compounded for the direct
administration to a patient by parenteral, intravenous, intramuscular,
subcutaneous, or intraspinal infusion, may be transmitted by the
practitioner or practitioner's agent to the pharmacy by facsimile. The
facsimile will serve as the original prescription.
(f) A prescription
written for a schedule II substance for a resident of a long term care facility
may be transmitted by the practitioner or the practitioner's agent to the
dispensing pharmacy by facsimile. The facsimile serves as the original
prescription.
(g) A prescription
for a schedule II narcotic substance for a patient residing in a hospice
certified by Medicare under title XVII XVIII of the Social Security
Act, 42 U.S.C. § 1395 et seq., or licensed by the state, may be
transmitted by the practitioner or practitioner's agent to the dispensing
pharmacy by facsimile. The practitioner or the practitioner's agent will note
on the prescription that the patient is a hospice patient. The facsimile serves
as the original written prescription.
(h) An apothecary, in
lieu of a written prescription, may sell and dispense controlled substances in
schedules III, IV, and V to any person, upon an oral prescription of a
practitioner. In issuing an oral prescription the prescriber shall furnish the
apothecary with the same information as is required by subsection (a) of
this section in the case of a written prescription for controlled
substances in schedule II, except for the written signature of the person
prescribing, and the apothecary who fills the prescription, shall immediately
reduce the oral prescription to writing and shall inscribe the information on
the written record of the prescription made. This record shall be filed and
preserved by the proprietor of the pharmacy in which it is filled in accordance
with the provisions of subsection (c) of this section. In no case may a
prescription for a controlled substance listed in schedules III, IV, or V be
filled or refilled more than six (6) months after the date on which the
prescription was issued and no prescription shall be authorized to be refilled
more than five (5) times. Each refilling shall be entered on the face or back
of the prescription and note the date and amount of controlled substance
dispensed, and the initials or identity of the dispensing apothecary.
(i) In the case of an
emergency situation as defined in federal law, an apothecary may dispense a controlled
substance listed in schedule II upon receiving an oral authorization of a
prescribing practitioner provided that:
(1) The quantity
prescribed and dispensed is limited to the amount adequate to treat the patient
during the emergency period and dispensing beyond the emergency period must be
pursuant to a written prescription signed by the prescribing practitioner.
(2) The prescription
shall be immediately reduced to writing and shall contain all the information
required in subsection (a) of this section.
(3) The prescription
must be dispensed in good faith in the normal course of professional practice.
(4) Within seven (7)
days after authorizing an emergency oral prescription, the prescribing
practitioner shall cause a written prescription for the emergency quantity
prescribed to be delivered to the dispensing apothecary. The prescription shall
have written on its face "Authorization for emergency dispensing" and
the date of the oral order. The written prescription upon receipt by the apothecary
shall be attached to the oral emergency prescription which had earlier been
reduced to writing.
(j) (1) The partial
filling of a prescription for a controlled substance listed in schedule II is
permissible, if the apothecary is unable to supply the full quantity called for
in a written prescription or emergency oral prescription and he or she makes a
notation of the quantity supplied on the face of the written prescription or
oral emergency prescription which has been reduced to writing. The remaining
portion of the prescription may be filled within seventy-two (72) hours of the
first partial filling, however, if the remaining portion is not, or cannot be
filled within seventy-two (72) hours, the apothecary shall notify the
prescribing practitioner. No further quantity may be supplied beyond
seventy-two (72) hours without a new prescription.
(2)(i) A
prescription for a schedule II controlled substance written for a patient in a
long term care facility (LTCF), or for a patient with a medical diagnosis
documenting a terminal illness, may be filled in partial quantities to include
individual dosage units. If there is a question whether a patient may be
classified as having a terminal illness, the pharmacist must contact the
practitioner prior to partially filling the prescription. Both the pharmacist
and the prescribing practitioner have a corresponding responsibility to assure
that the controlled substance is for a terminally ill patient.
(ii)(A) The pharmacist must record on the prescription whether the patient is
"terminally ill" or an "LTCF patient." A prescription that
is partially filled, and does not contain the notation "terminally
ill" or "LTCF patient", shall be deemed to have been filled in
violation of the act this chapter.
(iii)(B) For each partial filling, the dispensing pharmacist shall record on the
back of the prescription (or on another appropriate record, uniformly
maintained, and readily retrievable), the:
(A)(1) Date of the partial filling;
(B)(2) Quantity dispensed;
(C)(3) Remaining quantity authorized to be dispensed; and
(D)(4) Identification of the dispensing pharmacist.
(iv)(C) The total quantity of schedule II controlled substances dispensed in all
partial fillings, must not exceed the total quantity prescribed.
(v)(D) Schedule II prescriptions for patients in a LTCF, or patients with a
medical diagnosis documenting a terminal illness, are valid for a period
not to exceed sixty (60) days from the issue date, unless sooner terminated by
the discontinuance of medication.
(k) Automated data
processing systems. As an alternative to the prescription record keeping
provision of subsection (h) of this section, an automated data
processing system may be employed for the record keeping system, if the
following conditions have been met:
(1) The system shall
have the capability of producing sight-readable documents of all original and
refilled prescription information. The term "sight-readable" means
that an authorized agent shall be able to examine the record and read the information.
During the course of an on-site inspection, the record may be read from the
CRT, microfiche, microfilm, printout, or other method acceptable to the
director. In the case of administrative proceedings, records must be provided
in a paper printout form.
(2) Such The
information shall include, but not be limited to, the prescription requirements
and records of dispensing as indicated in subsection (h) of this section.
(3) The individual pharmacist
responsible for completeness and accuracy of the entries to the system must
provide documentation of the fact that prescription information entered into
the computer is correct. In documenting this information, the pharmacy shall
have the option to either:
(i)(A) Maintain a bound log book, or separate file, in which each individual
pharmacist involved in the dispensing shall sign a statement each day,
attesting to the fact that the prescription information entered into the
computer that day has been reviewed and is correct as shown. The book or file
must be maintained at the pharmacy employing such a that system
for a period of at least two (2) years after the date of last dispensing; or
(ii)(B) Provide a printout of each day's prescription information. That printout
shall be verified, dated, and signed by the individual pharmacist verifying
that the information indicated is correct. The printout must be maintained at
least two (2) years from the date of last dispensing.
(4) An auxiliary
record keeping system shall be established for the documentation of refills, if
the automated data processing system is inoperative for any reason. The
auxiliary system shall ensure that all refills are authorized by the original
prescription, and that the maximum number of refills is not exceeded. When this
automated data processing system is restored to operation, the information
regarding prescriptions filled and refilled during the inoperative period,
shall be entered into the automated data processing system within ninety-six
(96) hours.
(5) Any pharmacy
using an automated data processing system must comply with all applicable state
and federal laws and regulations.
(6) A pharmacy shall
make arrangements with the supplier of data processing services or materials to
ensure that the pharmacy continues to have adequate and complete prescription
and dispensing records if the relationship with such the supplier
terminates for any reason. A pharmacy shall ensure continuity in the
maintenance of records.
(7) The automated
data processing system shall contain adequate safeguards for security of the
records, to maintain the confidentiality and accuracy of the prescription
information. Safeguards against unauthorized changes in data after the
information has been entered and verified by the registered pharmacist shall be
provided by the system.
(l) Prescriptions for
controlled substances as found in schedules II, III and IV of § 21-28-2.08 will
become void unless dispensed within thirty (30) days of the original date of
the prescription. The prescriptions in schedules III, IV, and V cannot be
written for more than one hundred (100) dosage units and not more than one
hundred (100) dosage units may be dispensed at one time. For purposes of this
section, a dosage unit shall be defined as a single capsule, tablet or
suppository, or not more than one (1) teaspoon of an oral liquid.
(m) Prescriptions for
controlled substances as found in schedule II may be written for up to a 30-day
supply, with a maximum of two hundred and fifty (250) dosage units, as
determined by the prescriber's directions for use of the medication. In no
event shall more than a 30-days' supply, up to a maximum of two hundred and
fifty (250) dosage units, be dispensed at one time.
21-28-4.01. Prohibited acts A
- Penalties. -- (a)(1) Except as authorized by this
chapter, it shall be unlawful for any person to manufacture, deliver, or
possess with intent to manufacture or deliver a controlled substance.
(2)(1) Any person who is not a drug dependent person, as defined in § 21-28-1.02(15)
21-28-1.02(18), who violates this subsection with respect to a
controlled substance classified in schedule I or II, except the substance
classified as marijuana, is guilty of a crime and upon conviction may be
imprisoned to a term up to life, or fined not more than five hundred thousand
dollars ($500,000) nor less than ten thousand dollars ($10,000), or both.
(3) Provided, however, that Where the
deliverance as prohibited herein in this subsection shall be the
proximate cause of death to the person to whom the controlled substance is
delivered, it shall not be a defense that the person delivering the substance
was at the time of delivery, a drug dependent person as defined in § 21-28-1.02(15)
21-28-1.02(18).
(4)(2) Any person, except as provided for in subsection (A)(1) subdivision
(2) of this subsection, who violates this subsection with respect to:
(i)(a) A controlled substance classified in schedule I or II, is guilty
of a crime and upon conviction may be imprisoned for not more than thirty (30)
years, or fined not more than one hundred thousand dollars ($100,000) nor less
than three thousand dollars ($3,000), or both;
(ii)(b) A controlled substance classified in schedule III or IV, is guilty of a
crime and upon conviction may be imprisoned for not more than twenty (20)
years, or fined not more than forty thousand dollars ($40,000), or both;
provided, however, with respect to a controlled substance classified in
schedule III(d), upon conviction may be imprisoned for not more than
five (5) years, or fined not more than twenty thousand dollars ($20,000), or
both.
(iii)(c) A controlled substance classified in schedule V, is guilty of a crime
and upon conviction may be imprisoned for not more than one year, or fined not
more than ten thousand dollars ($10,000), or both.
(b)(1) Except
as authorized by this chapter, it is unlawful for any person to create,
deliver, or possess with intent to deliver, a counterfeit substance.
(2)(1) Any person who violates this subsection with respect to:
(i)(a) A counterfeit substance classified in schedule I or II, is guilty of a
crime and upon conviction may be imprisoned for not more than thirty (30)
years, or fined not more than one hundred thousand dollars ($100,000), or both;
(ii)(b) A counterfeit substance classified in schedule III or IV, is guilty of a
crime and upon conviction may be imprisoned for not more than twenty (20)
years, or fined not more than forty thousand dollars ($40,000), or both;
provided, however, with respect to a controlled substance classified in
schedule III(d), upon conviction may be imprisoned for not more than
five (5) years, or fined not more than twenty thousand dollars ($20,000) or
both.
(iii)(c) A counterfeit substance classified in schedule V, is guilty of a crime
and upon conviction may be imprisoned for not more than one year, or fined not
more than ten thousand dollars ($10,000), or both.
(c)(1) It
shall be unlawful for any person knowingly or intentionally to possess a
controlled substance, unless the substance was obtained directly from or
pursuant to, a valid prescription or order of a practitioner while
acting in the course of his or her professional practice, or except as
otherwise authorized by this chapter.
(2)(1) Any person who violates this subsection with respect to:
(i)(a) A controlled substance classified in schedules I, II and III, IV, and V,
except the substance classified as marijuana, is guilty of a crime and upon
conviction may be imprisoned for not more than three (3) years or fined not
less than five hundred dollars ($500) nor more than five thousand dollars
($5,000), or both;
(ii)(b) A controlled substance classified in schedule I as marijuana is guilty
of a misdemeanor and upon conviction may be imprisoned for not more than one
year or fined not less than two hundred dollars ($200) nor more than five
hundred dollars ($500), or both.;
(3)(2) Additionally every person convicted or who pleads nolo contendere under subsection
(C)(1)(a) paragraph (2)(i) of this subsection or convicted or who
pleads nolo contendere a second or subsequent time under subsection
(C)(1)(b) above paragraph (2)(ii) of this subsection, who is not
sentenced to a term of imprisonment to serve for the offense, shall be required
to:
(i)(a) Perform no less than one hundred (100) hours of community service;
(ii)(b) Be referred to Treatment Alternatives to Street Crime (TASC) to
determine the existence of problems of drug abuse. Should TASC determine the
person needs treatment, it will arrange for said the treatment to
be provided and after completion of said the treatment, the
person shall perform his or her required community service and attend the drug
education program;.
(iii)(c) Attend and complete a drug counseling and education program as
prescribed by the director of the department of health and pay the sum of four
hundred dollars ($400) to help defray the costs of this program which shall be
deposited as general revenues. Failure to attend may result after hearing by
the court in jail sentence up to one year;
(iv)(d) The court shall not suspend any part or all of the imposition of the fee
required by this subsection, unless the court finds an inability to pay;.
(v)(e) If the offense involves the use of any automobile to transport the
substance or the substance is found within an automobile, then a person
convicted or who pleads nolo contendere under those subsections paragraphs
(2)(i) and (ii) of this subsection shall be subject to a loss of license
for a period of six (6) months for a first offense and one year for each
offense thereafter.
(4)(3) All fees assessed and collected pursuant to subsection (C)(2)(c) paragraph
(3)(iii) of this subsection shall be deposited as general revenues and
shall be collected from the person convicted or who pleads nolo contendere
before any other fines authorized by this chapter.
(d) It shall be
unlawful for any person to manufacture, distribute, or possess with intent to
manufacture or distribute, an imitation controlled substance. Any person who
violates this subsection is guilty of a crime, and upon conviction shall be
subject to the same term of imprisonment and/or fine as provided by this
chapter for the manufacture or distribution of the controlled substance which
the particular imitation controlled substance forming the basis of the
prosecution was designed to resemble and/or represented to be; but in no case
shall the imprisonment be for more than five (5) years nor the fine for more
than twenty thousand dollars ($20,000).
(e) It shall be
unlawful for a practitioner to prescribe, order, distribute, supply, or sell an
anabolic steroid or human growth hormone for: (1)(i)
enhancing performance in an exercise, sport, or game, or (2)(ii)
hormonal manipulation intended to increase muscle mass, strength, or weight
without a medical necessity. Any person who violates this subsection is guilty
of a misdemeanor and upon conviction may be imprisoned for not more than six
(6) months or a fine of not more than one thousand dollars ($1,000), or both.
21-28-4.15. Employment of person under age eighteen
(18). -- (a)(1) It shall be
unlawful for any person eighteen (18) years of age or older to hire, employ or
otherwise use any person under eighteen (18) years of age who is at least three
(3) years his or her junior to manufacture, transport, carry, sell, prepare for
sale or offer for sale a controlled substance; provided, however, that the
provisions of this subsection shall not apply to individuals enrolled in a
pharmacy training program approved by the director.
(b)(2) Any person who violates this section with respect to:
(1)(a) A controlled substance classified in schedules I and II, except the
substance classified as marijuana, is guilty of a crime and upon
conviction shall be imprisoned for not less than fifteen (15) years and may be
imprisoned for a term up to life and fined not more than five hundred thousand
dollars ($500,000). In all such cases, the justice imposing sentence shall
impose a minimum sentence of fifteen (15) years imprisonment and may only
impose a sentence less than that minimum if he or she finds that substantial
and compelling circumstances exist which justify imposition of the alternative
sentence. The finding may be based upon the character and background of the
defendant, the corporation cooperation of the defendant with law
enforcement authorities, the nature and circumstances of the offense, and/or
the nature and quality of the evidence presented at trial. If a sentence which
is less than imprisonment for a term of fifteen (15) years is imposed, the
trial justice shall set forth on the record the circumstances which he or she
found as justification for imposition of the lesser sentence;.
(2)(b) A controlled substance classified in schedule III or IV, is
guilty of a crime and upon conviction may be imprisoned for not more than
twenty (20) years or fined not more than forty thousand dollars ($40,000) or
both;
(3)(c) A controlled substance classified in schedule V or marijuana, is
guilty of a crime and upon conviction may be imprisoned for not more than one
year or fined not more than ten thousand dollars ($10,000) or both.
21-28-4.17.1. Assessment for drug education,
counseling and treatment. -- Any person convicted of any offense under Article IV of the Uniform
Controlled Substances Act this article, other than the possession
offenses described in § 21-28-4.01(c), shall, in addition to any other sentence
and/or fine imposed, be assessed four hundred dollars ($400) by the court and
the assessment shall be collected from the person convicted before any other
fines authorized by this chapter. The court shall not suspend any part or all
of the imposition of the assessment required by this subsection, unless the
court finds an inability to pay. The assessment shall be deposited in the "drug
education, assessment and treatment account" to be used by the
department of mental health, retardation and hospitals (MHRH)
and the department of health for the purposes provided for in §
21-28-4.01(C)(3) purpose of administration, drug education, and
treatment.
21-28-5.04. Forfeiture of
property and money. -- (a) Any property, real or personal, including,
but not limited to, vessels, vehicles, or aircraft, and money or
negotiable instruments, securities, or other things of value or any property
constituting, or derived from any proceeds, furnished or intended to be
furnished by any person for the transportation of or in exchange for a
controlled substance and which has been or is being used in violation of §
21-28-4.01(a) or (b) or in, upon or by means of which any violation of §
21-28-4.01(a) or (b) or § 21-28-4.01.1 or § 21-28-4.01.2 has taken or is
taking place, and all real property including any right, title, and
interest in the whole of any lot or tract of land and any appurtenances or
improvements, which is used in the commission of a violation of §
21-28-4.01(a) or (b) or § 21-28-4.01.1 or § 21-28-4.01.2, or which was
purchased with funds obtained as a result of the commission of a violation of §
21-28-4.01(a) or (b) or § 21-28-4.01.1 or § 21-28-4.01.2, shall be
seized and forfeited; provided that no property or money, as enumerated above,
used by any person shall be forfeited under the provisions of this chapter
unless it shall appear that the owner of the property or money had knowledge,
actual or constructive, and was a consenting party to the alleged illegal act.
All moneys, coin and currency, found in close proximity to forfeitable
controlled substances, to forfeitable drug manufacturing or distributing
paraphernalia, or to forfeitable records of the importation, manufacture, or
distribution of controlled substances, are presumed to be unlawfully furnished
in exchange for a controlled substance or otherwise used in violation of this
chapter. The burden of proof is upon claimants of the property to rebut this
presumption.
(b) Property taken or
detained under this section shall not be repleviable, but shall be deemed to be
in the custody of the law enforcement agency making the seizure and whenever
property or money is forfeited under this chapter it shall be utilized as
follows:
(1) Where the seized
property is a vessel, vehicle, aircraft, or other personal property it may be
retained and used by the law enforcement agency that seized the property where
the use of the property is reasonably related to the law enforcement duties of
the seizing agency. If the seized property is a motor vehicle which is
inappropriate for use by law enforcement agency due to style, size, or color,
the seizing agency shall be allowed to apply the proceeds of sale or the trade
in value of the vehicle towards the purchase of an appropriate vehicle for use
for activities reasonably related to law enforcement duties.
(2) The law enforcement
agency may sell any forfeited property which is not required by this chapter to
be destroyed and which is not harmful to the public. The proceeds from the sale
are to be distributed in accordance with subdivision (3) of this subsection.
(3) As to the
proceeds from the sale of seized property as referred to above in subsection
(b)(2) subdivision (2) of this subsection and as to moneys, coin and
currency, negotiable instruments, securities, or other things of value as
referred to in subsection (a) of this section, the distribution shall be as
follows:
(i)(A)(A) (i) All proceeds of the forfeiture of real or personal property shall be
distributed as follows: All costs of advertising administrative forfeitures
shall first be deducted from the amount forfeited. Of the remainder, twenty
percent (20%) of the proceeds shall be provided to the attorney general's
department to be used for further drug-related law enforcement activities
including, but not limited to, investigations, prosecutions and the administration
of this chapter; seventy percent (70%) of the proceeds shall be divided among
the state and local law enforcement agencies proportionately based upon their
contribution to the investigation of the criminal activity related to the asset
being forfeited; and ten percent (10%) of the proceeds shall be provided to the
department of health for distribution to substance abuse treatment programs.
(B)(ii) The law enforcement agencies involved in the investigation with the
assistance of the attorney general shall by agreement determine the respective
proportionate share to be received by each such agency. If the agencies
are unable to reach agreement, application shall be made by one or more of the
agencies involved to the presiding justice of the superior court, who shall
determine the respective proportionate share attributable to each law
enforcement agency. The proceeds from all forfeitures shall be held by the
general treasurer in a separate account until such time as an allocation is
determined by agreement of the agencies or by the presiding justice. It shall
be the duty and responsibility of the general treasurer to disburse the
allocated funds from the separate account to the respective law enforcement
agencies.
(ii)(B) Each state or local law enforcement agency shall be entitled to keep the
forfeited money or the proceeds from sales of forfeited property. The funds
shall be used for law enforcement purposes and investigations of violations of
this chapter. The funds received by a state law enforcement agency shall be
maintained in a separate account by the general treasurer. The funds received
by a local law enforcement agency shall be maintained in a separate account by
the local agency's city or town treasurer.
(c)(1) There
is hereby established in the state's treasury a special fund to be known
as the asset forfeiture fund in which shall be deposited the excess proceeds of
forfeitures arising out of criminal acts occurring before July 1, 1987. The
asset forfeiture fund shall be used to fund drug-related law enforcement
activity and the treatment and rehabilitation of victims of drug abuse. The
fund shall be administered through the office of the general treasurer. The
presiding justice of the superior court shall have the authority to determine the
feasibility and amount of disbursement to those state or local law enforcement
agencies which have made application.
(2) Upon the application of any law enforcement
agency of the state of Rhode Island when a special need exists concerning the enforcement
of the provisions of this chapter, the attorney general or his or her
designee may apply to the presiding justice of the superior court for the
release from the general treasury sums of money. When the presiding justice
upon consideration of the reasons set forth by that agency deems them to be
reasonable and necessary to the accomplishment of a goal within the powers and
duties of that law enforcement agency, he or she may issue an order ex parte
providing for the release of the funds.
(d) Each law
enforcement agency making any seizure(s) which result(s) in a forfeiture
pursuant to this section shall certify and file with the state treasurer
between January 1 and January 30 an annual report detailing the property or
money forfeited during the previous calendar year and the use or disposition of
the property or money. The report shall be made in such the form
and manner as may be provided or specified by the treasurer and the aforementioned
annual law enforcement agency reports shall be provided to the local
governmental body governing the agency and to the house and senate judiciary
committees.
(e) Any law
enforcement agency whose duty it is to enforce the laws of this state relating
to controlled substances is empowered to authorize designated officers or
agents to carry out the seizure provisions of this chapter. It shall be the
duty of any officer or agent so authorized or designated or authorized by law,
whenever he or she shall discover any property or monies which have been or are
being used in violation of any of the provisions of this chapter, or in, upon
or by means of which any violation of this chapter has taken or is taking
place, to seize such the property or monies and to place it in
the custody of such the person as may be authorized or designated
for that purpose by the respective law enforcement agency pursuant to those
provisions.
21-28-5.05. Forfeiture of
controlled substances, related materials and other property, equipment and
records. -- (a) The following shall be subject to
forfeiture to the state and no property right shall exist in them:
(1) All controlled
substances which have been manufactured, distributed, dispensed, or acquired in
violation of this chapter.
(2) All raw
materials, products, and equipment of any kind which are used, or intended for
use, in manufacturing, compounding, processing, delivering, importing, or
exporting any controlled substance in violation of this chapter.
(3) All property
which is used, or intended for use, as a container for property described in subsection
(a)(1) or (2) subdivision (1) or (2) of this subsection, subject to
the limitations of § 21-28-5.04.
(4) All books,
records and research, including formulas, microfilm, tapes, and data which are
used, or intended for use, in violation of this chapter.
(5) All imitation controlled substances which
have been manufactured, distributed, or acquired in violation of this chapter.
(b)
Property taken or detained under this section shall not be repleviable, but
shall be deemed to be in the custody of the law enforcement agency making the
seizure. Whenever property is forfeited under this chapter the law enforcement
agency may:
(1) Retain the
property for official use;
(2) Sell any
forfeited property which is not required by this chapter to be destroyed and
which is not harmful to the public, but the proceeds of the sale, after first
deducting an amount sufficient for all proper expenses of the proceedings for
forfeiture and sale, including expenses of seizure, maintenance of custody,
advertising, and court costs, shall be paid to the general treasurer for the
use thereof of the state.
21-28-5.07. Disposition of
controlled substances. -- (a) Any person lawfully in possession of
excess or undesired controlled substances shall dispose of such the
controlled substances in a manner established in regulation by the director
which shall include, but not be limited to, requirements that such the
person shall keep a full and complete record of all controlled substances received
and of all controlled substances disposed of, showing: (1) the
exact kinds, quantities, and forms of the controlled substances; (2) the
persons from whom received and to whom delivered;, (3) by
whose authority received, delivered, and destroyed; and (4) the date of
the receipt, disposal or destruction, which record shall be open to inspection
by all federal or state officers, including the director of health and the
director's delegated personnel, charged with the enforcement of federal law or
of this chapter.
(b) [Deleted by
P.L. 1997, ch. 30, art. 28, § 5.] Controlled substances and imitation
controlled substances seized by or in the possession of the Rhode Island state
police shall be distributed or destroyed as hereinafter provided by
regulation. The superintendent of state police shall keep a full and
complete record of all controlled substances received and of all controlled
substances disposed of, showing: (1) the exact kinds, quantities,
and forms of the controlled substances; (2) the persons from whom
received and to whom delivered; (3) by whose authority received,
delivered, and destroyed; and (4) the dates of the receipt, disposal, or
destruction, which record shall be open to inspection by all federal or state
officers charged with the enforcement of federal law or of this chapter.
(c) Controlled
substances and imitation controlled substances seized by or in the possession
of any municipal or state law enforcement agency other than the Rhode Island
state police shall be distributed or destroyed as hereinafter provided by
regulation. The chief law enforcement official of each such agency
shall keep a full and complete record of all controlled substances received and
of all controlled substances disposed of, showing: (1) the exact
kinds, quantities, and forms of the controlled substances; (2) the
persons from whom received and to whom delivered; (3) by whose authority
received, delivered, and destroyed; and (4) the dates of the receipt,
disposal, or destruction, which record shall be open to inspection by all
federal or state officers charged with the enforcement of federal law or of
this chapter.
(d) The director of
health or his or her designee is authorized: (1) to enter any premises
where controlled substances are brought for disposal pursuant to this section;
(2) to inspect any and all aspects of the disposal process and related records;
and (3) to obtain and test samples of any and all controlled substances being
processed for disposal for the purpose of determining compliance with state and
federal law.
21-28-5.07.2. Issuance of orders. -- Upon such an application as provided in § 21-28-5.07.1
the presiding justice of the superior court, or the senior associate justice of
the superior court when the presiding justice shall disqualify himself or
herself from entering such the order, may enter an ex parte
order, authorizing the use of controlled substances seized as contraband if the
justice determines on the basis of the evidence submitted that:
(1) There is probable
cause to believe that a particular, identified individual is committing, has
committed or is about to commit a particular designated offense;
(2) It has been
demonstrated that the use of such the controlled substances will
assist law enforcement officials in the investigation of felony violations of the
uniform controlled substances act this chapter or felony violations
of other criminal laws of this state and that normal investigative procedures
have been tried and have failed or reasonably appear to be unlikely to succeed
if tried or to be too dangerous.
21-28-5.07.3. Disclosure. -- Notwithstanding the decision of the justice, any materials submitted or
testimony offered pursuant to § 21-28-5.07.1 shall be kept under seal
and not available for inspection, except after hearing by the issuing justice
who shall determine, prior to their release, that the sealing of the records is
no longer necessary for the protection of the integrity of the investigation or
the protection of any sources of information which contributed to the
investigation will not be compromised thereby by the release.
21-28-5.07.4. Control of
controlled substance. -- (a) Any controlled substance which has been authorized to be used by the state
police, local police or investigator appointed pursuant to § 42-9-8.1
designated by the attorney general in investigations of controlled substance
violations, shall be kept under the physical control of the requesting
law enforcement agency until the said controlled substance is to
be used in an investigation.
(b) When used in an investigation, at no time
shall any substantial amount of the controlled substance be physically
delivered to a person unless the police intend to and are able to immediately
arrest said the person to whom the controlled substance was
delivered for commission of a felony criminal offense.
(c) Upon final disposition of all matters
regarding the use of any controlled substances in accordance with this
section § 21-28-5.07.1, such the controlled substance shall
be destroyed in accordance with the provisions of § 21-28-5.07.
21-28-5.07.5. Rules and
regulations. -- The department of attorney general
shall promulgate rules and regulations in furtherance of the administration of their
his or her responsibilities pursuant to this chapter and concerning the
custody and control of all controlled substances utilized pursuant to this
section § 21-28-5.07.1 and no application for use of controlled
substances shall be applied for until the rules and regulations have been
formally approved by the attorney general.
SECTION
55. Sections 21-28-6.01 and 21-28-6.02 of the General Laws in Chapter 21-28
entitled "Uniform Controlled Substances Act" are hereby repealed in
their entirety.
21-28-6.01. Pending proceedings. (a) Prosecutions for any violations of law occurring prior to July 1,
1974, shall not be affected by these repealers or amendments, or abated by
reason thereof of them.
(b) Civil seizures
or forfeitures and injunctive proceedings commenced prior to July 1, 1974,
shall not be affected by these repealers or amendments, or abated by reason
thereof of them.
(c) All
administrative proceedings pending before the department on July 1, 1974, shall
be continued and brought to final determination in accord with laws and
regulations in effect prior to July 1, 1974. Drugs placed under control prior
to July 1, 1974, which are not listed within schedules I through V inclusive,
shall automatically be controlled and listed in the appropriate schedule.
(d) The provisions
of this chapter shall be applicable to violations of law, seizures and
forfeiture, injunctive proceedings, administrative proceedings, and
investigations which occur following July 1, 1974.
21-28-6.02. Continuation of regulations.
-- Any orders, rules and
regulations which have been promulgated under any law affected by this chapter
and which are in effect on June 30, 1974 shall continue in effect until
notified, superseded, or repealed by the director.
21-28-5.04.2.
Civil forfeiture procedure.
21-28-5.04.2 Civil forfeiture procedure. -- (a) In addition to or in lieu of the criminal forfeiture procedures of
this chapter, any property described in § 21-28-5.04 except as designated in
subsection (b) of this section, is subject to civil forfeiture to the state.
Civil forfeiture proceedings shall be in the nature of an action in rem and
shall be governed by the civil rules for in rem proceedings.
(b) All property
described in § 21-28-5.04 is subject to civil forfeiture except that:
(1) No conveyances
used by any person as a common carrier in the transaction of business as a
common carrier shall be forfeited under the provisions of this section unless
it appears that the owner or other person in charge of the conveyance was a
consenting party or privy to the covered offense charged;
(2) No conveyance
shall be forfeited under the provisions of this section by reason of any act or
omission established by the owner thereof of it to have been
committed or omitted by any person other than the owner while the conveyance
was unlawfully in the possession of a person other than the owner in violation
of the criminal laws of this state or of the United States; and
(3) No property shall
be forfeited under this section, to the extent of the interest of an owner, by
reason of any act or omission established by that owner to have been committed
or omitted without knowledge or consent of that owner.
(c) Property subject
to forfeiture under this section may be seized by a law enforcement officer:
(1) Upon process
issued pursuant to the Rules of Civil Procedure applicable to in rem
proceedings;
(2) Upon process
issued pursuant to a legally authorized search warrant; or
(3) Without such
court process when:
(i)(A) The seizure is incident to a lawful arrest or search;
(ii)(B) The property subject to seizure has been the subject of a prior judgment
in favor of the state in a controlled substance act;
(iii)(C) The law enforcement officer has probable cause to believe that the
property is directly or indirectly dangerous to health or safety; or
(iv)(D) The law enforcement officer has probable cause to believe that the
property is forfeitable under § 21-28-5.04.
(d) In the event of a
seizure under § 21-28-5.04 the property shall not be subject to sequestration
or attachment but is deemed to be in the custody of the law enforcement agency
making the seizure, subject only to the order of the court. When property is
seized under this section, pending forfeiture and final disposition, the law
enforcement agency making the seizure may:
(1) Place the
property under seal;
(2) Remove the
property to a storage area for safekeeping;
(3) Remove the
property to a place designated by the court; or
(4) Request another
agency authorized by law to take custody of the property and remove it to an
appropriate location within the jurisdiction of the court.
(e) As soon as
practicable after seizure, the seizing agency shall conduct an inventory upon
and cause the appraisal of the property seized.
(f) In the event of a
seizure under this section, the seizing agency shall within thirty (30) days
send to the attorney general a written request for forfeiture, which shall
include a statement of all facts and circumstances including the names of all
witnesses then known, the appraised value of the property and the statutory provision
relied upon for forfeiture.
(g) The attorney
general shall immediately examine the facts and applicable law of the cases
referred to him or her pursuant to this section, and if it is probable that the
property is subject to forfeiture shall forthwith immediately
cause the initiation of administrative or judicial proceedings against the
property. If, upon inquiry and examination, the attorney general determines
that such those proceedings probably cannot be sustained or that
justice does not require the institution of such the proceedings,
he or she shall make a written report of such those findings,
transmit a copy to the seizing agency, and forthwith immediately
authorize the release of the property.
(h) If the value of
any personal property seized does not exceed twenty thousand dollars ($20,000),
the attorney general may forfeit the property administratively in the following
manner:
(1) The attorney
general shall provide notice of intention to forfeit property administratively
by publication in a local newspaper of general circulation, one day per week
for three (3) consecutive weeks.
(2) In addition, to
the extent practicable, the attorney general shall provide notice by registered
mail of intent to forfeit the property administratively to all known interested
parties and all parties whose identity is reasonably subject to discovery who
may have an interest in the property seized.
(3) Notice by
publication and by mail shall include:
(i)(A) A description of the property;
(ii)(B) The appraised value of the property;
(iii)(C) The date and place of seizure;
(iv)(D) The violation of law alleged against the subject property;
(v)(E) The instructions for filing claim and cost bond or a petition for
remission or mitigation; and
(vi)(F) A notice that the property will be forfeited to the state if a petition
for remission or mitigation or a claim and cost bond has not been timely filed.
(4) Persons claiming
an interest in the property may file petitions for remission or mitigation of
forfeiture or a claim and cost bond with the attorney general within thirty
(30) days of the final notice by publication or receipt of written notice,
whichever is earlier.
(5) The attorney
general shall inquire into the facts and circumstances surrounding petitions
for remission or mitigation of forfeiture.
(6) The attorney
general shall provide the seizing agency and the petitioner a written decision
on each petition for remission or mitigation within sixty (60) days of receipt
of the petition unless the circumstances of the case require additional time,
in which case the attorney general shall notify the petitioner in writing and
with specificity within the sixty (60) day period that the circumstances of the
case require additional time and further notify the petitioner of the expected
decision date.
(7) Any person
claiming seized property under this subsection may institute de novo judicial
review of the seizure and proposed forfeiture by timely filing with the
attorney general a claim and bond to the state in the amount of ten percent
(10%) of the appraised value of the property or in the penal sum of two hundred
fifty dollars ($250), whichever is greater, with sureties to be approved by the
attorney general, upon condition that in the case of forfeiture the claimant shall
pay all costs and expenses of the proceedings at the discretion of the court.
Upon receipt of the claim and bond, or if he or she otherwise so elects, the
attorney general shall file with the court a complaint in rem in accordance
with the procedures set forth in this section. Any funds received by the
attorney general as cost bonds shall be placed in an escrow account pending
final disposition of the case.
(8) If no petitions
or claims with bonds are timely filed, the attorney general shall prepare a written
declaration of forfeiture of the subject property to the state and dispose of
the property in accordance with this chapter.
(9) If the petition
is denied, the attorney general shall prepare a written declaration of
forfeiture to the state and dispose of the property in accordance with this
chapter and the attorney general's regulations, if any, promulgated thereunder
pursuant to this chapter.
(10) A written
declaration of forfeiture signed by the attorney general pursuant to this
chapter shall be deemed to provide good and sufficient title to the forfeited
property.
(i) If the value of
any personal property seized exceeds twenty thousand dollars ($20,000), the
attorney general shall file a complaint in rem against the property within
twenty (20) days of the receipt of the report referred to in subsection (f) of
this section and thereafter provide notice of intention to forfeit by
publication in a local newspaper of general circulation for a period of at
least once per week for three (3) consecutive weeks. The notice shall include:
(1)(A) A description of the property;
(2)(B) The appraised value of the property;
(3)(C) The date and place of seizure;
(4)(D) The violation of law alleged against the subject property.;
(j)(1) The case
may be tried by a jury, if in the superior court, upon the request of either
party, otherwise by the court, and the cause of forfeiture alleged being
proved, the court which shall try the case shall enter upon judgment for the
forfeiture and disposition of such the property according to law.
(2)(1) An appeal may be claimed by either party from any judgment of forfeiture
rendered by the district court, to be taken in like manner as by defendants in
criminal cases within the jurisdiction of the district court to try and
determine, to the superior court for the same county in which the division of
the district court rendering judgment is situated and like proceedings may be
had therein as in cases of informations for forfeitures originally filed in
that court.
(3)(2) The judgment of the superior court shall be final in all cases of such
the forfeitures, whether originally commenced in that court or brought
there by appeal, unless a new trial be ordered, for cause shown by the supreme
court.
(k) The in rem action
shall be brought in the district court if the value of the property seized is
less than two hundred fifty thousand dollars ($250,000), otherwise the in rem
action shall be brought in the superior court. The attorney general shall also,
to the extent practicable, provide written notice of the action in rem to all
known interested parties and all persons whose identity is reasonably subject
to discovery who may have an interest in the property.
(l) Persons claiming
an interest in the property may file claims against the property within thirty
(30) days of the final notice by publication or receipt of written notice,
whichever is earlier. The claims shall be filed and adjudicated in the manner
set forth for petitions in criminal proceedings in § 21-28-5.04.1(f).
(m) If the property
sought to be forfeited is real property, the attorney general shall file a
complaint in rem in the superior court against the property. In addition to
providing notice as required by this chapter, the attorney general shall file a
lis pendens with respect to the property with the recorder of deeds in the city
or town in which the property is located.
(n) Upon order of the
court forfeiting the subject property to the state, the state shall have clear
title to the forfeited property, and the attorney general may transfer good and
sufficient title to any subsequent purchaser or transferee. Title to the
forfeited property shall be deemed to have vested in the state upon the
commission of the act giving rise to the forfeiture under this chapter.
(o) Upon entry of
judgment for the claimant in any proceeding to forfeit property under this
chapter, the property shall be returned forthwith immediately to
the claimant. If it appears that there was reasonable cause for the seizure of
or the filing of the complaint, the court shall cause a proper
certificate thereof of that to be entered, and the claimant shall
not, in that case, be entitled to costs or damages, nor shall the person or
agency who made the seizure, nor the attorney general not nor the
prosecutor, be liable to suit or judgment on account of the seizure, suit, or
prosecution.
(p) In any action
brought under this section, the state shall have the initial burden of showing
the existence of probable cause for seizure or arrest of the property. Upon such
a that showing by the state, the claimant shall have the burden of
showing by a preponderance of evidence that the property was not subject to
forfeiture under this section.
SECTION 57. Section
31-41.1-4 of the General Laws in Chapter 31-41.1 entitled "Adjudication of
Traffic Offenses" is hereby amended to read as follows:
31-41.1-4. Schedule of violations. -- (a) The penalties for violations of the
enumerated sections, listed in numerical order, correspond to the fines
described; provided, however, those offenses for which punishments which may
vary according to the severity of the offense, or punishment which require the
violator to perform a service, shall be heard and decided by the traffic
tribunal or municipal court. The following violations may be handled
administratively through the method prescribed in this chapter; provided,
however, this list is not exclusive and jurisdiction may be conferred on the
traffic tribunal with regard to other violations.
|
|
VIOLATIONS SCHEDULE |
|
|
Section of General Laws |
|
Total Fine |
|
08-08.2-02 |
DOT, DEM, or other agency and department violations |
$50.00 |
|
24-10-17 |
Soliciting rides in motor vehicles |
50.00 |
|
24-10-18 |
Backing up prohibited |
50.00 |
|
24-10-20 |
Park and ride lots |
50.00 |
|
31-03-12 |
Visibility of plates |
50.00 |
|
31-03-18 |
Display of plates |
50.00 |
|
31-03-32 |
Driving with expired registration |
50.00 |
|
31-03-34 |
Failure to notify division of change of address |
50.00 |
|
31-03-35 |
Notice of change of name |
50.00 |
|
31-03-40 |
Temporary plates - dealer issued |
50.00 |
|
31-04-03 |
Temporary registration - twenty (20) day bill of sale |
50.00 |
|
31-07-01 |
Operating on foreign registration |
|
|
31-08-01 |
Operating without evidence of registration |
50.00 |
|
31-10.0-10 |
Rules as to armed forces license |
50.00 |
|
31-10.0-30 |
Driving on expired license |
50.00 |
|
31-10.0-32 |
Notice of change of address |
50.00 |
|
31-10.1-04 |
No motorcycle helmet (operator) |
50.00 |
|
31-10.1-05 |
Motorcycle handlebar violation |
50.00 |
|
31-10.1-06 |
No motorcycle helmet (passenger) |
50.00 |
|
31-10.1-07 |
Inspection of motorcycle required |
50.00 |
|
31-12-12 |
Local motor vehicle ordinance |
50.00 |
|
31-13-04 |
Obedience to devices |
50.00 |
|
31-13-06(3)(i) |
Eluding traffic light |
50.00 |
|
31-13-09 |
Flashing signals |
50.00 |
|
31-13-11 |
Injury to signs or devices |
50.00 |
|
31-14-01 |
Reasonable and prudent speed |
50.00 |
|
31-14-03 |
Condition requiring reduced speed |
50.00 |
|
31-14-09 |
Below minimum speed |
50.00 |
|
31-14-12 |
Speed limit on bridges and structures |
50.00 |
|
31-15-01 |
Leaving lane of travel |
50.00 |
|
31-15-02 |
Slow traffic to right |
50.00 |
|
31-15-03 |
Operator left of center |
50.00 |
|
31-15-04 |
Overtaking on left |
50.00 |
|
31-15-05(a) |
Overtaking on right |
50.00 |
|
31-15-06 |
Clearance for overtaking |
50.00 |
|
31-15-07 |
Places where overtaking prohibited |
50.00 |
|
31-15-08 |
No passing zone |
50.00 |
|
31-15-09 |
One way highways |
50.00 |
|
31-15-10 |
Rotary traffic islands |
50.00 |
|
31-15-11 |
Laned roadway violation |
50.00 |
|
31-15-12 |
Following too closely |
50.00 |
|
31-15-12.1 |
Entering intersection |
50.00 |
|
31-15-13 |
Crossing center section of divided highway |
50.00 |
|
31-15-14 |
Entering or leaving limited access roadways |
50.00 |
|
31-15-16 |
Use of emergency break-down lane for travel |
50.00 |
|
31-16-01 |
Care in starting from stop |
50.00 |
|
31-16-02 |
Manner of turning at intersection |
50.00 |
|
31-16-04 |
U turn where prohibited |
50.00 |
|
31-16-05 |
Turn signal required |
50.00 |
|
31-16-06 |
Time of signaling turn |
50.00 |
|
31-16-07 |
Failure to give stop signal |
50.00 |
|
31-16-08 |
Method of giving signals |
50.00 |
|
31-17-01 |
Failure to yield right of way |
50.00 |
|
31-17-02 |
Vehicle turning left |
50.00 |
|
31-17-03 |
Yield right of way (intersection) |
50.00 |
|
31-17-04 |
Obedience to stop signs |
50.00 |
|
31-17-05 |
Entering from private road or driveway |
50.00 |
|
31-17-08 |
Vehicle within right of way, rotary |
50.00 |
|
31-18-03 |
Right of way in crosswalks |
50.00 |
|
31-18-05 |
Crossing other than at crosswalks |
50.00 |
|
31-18-08 |
Due care by drivers |
50.00 |
|
31-18-12 |
Hitchhiking |
50.00 |
|
31-18-18 |
Right of way on sidewalks |
50.00 |
|
31-19.0-03 |
Traffic laws applied to bicycles |
50.00 |
|
31-19.0-20 |
Sale of new bicycles |
50.00 |
|
31-19.0-21 |
Sale of used bicycles |
50.00 |
|
31-19.1-02 |
Operating motorized bicycle on an interstate highway |
50.00 |
|
31-19.2-02 |
Operating motorized tricycle on an interstate highway |
50.00 |
|
31-20-01 |
Failure to stop at railroad crossing |
50.00 |
|
31-20-02 |
Driving through railroad gate |
50.00 |
|
31-20-09 |
Obedience to stop sign |
50.00 |
|
31-21-04 |
Places where parking or stopping prohibited |
50.00 |
|
31-21-14 |
Opening of vehicle doors |
50.00 |
|
31-22-02 |
Improper backing up |
50.00 |
|
31-22-04 |
Overloading vehicle |
50.00 |
|
31-22-05 |
Violation of safety zone |
50.00 |
|
31-22-06 |
Coasting |
50.00 |
|
31-22-07 |
Following fire apparatus |
50.00 |
|
31-22-08 |
Crossing fire hose |
50.00 |
|
31-22-09 |
Throwing debris on highway - snow removal |
50.00 |
|
31-22-11.5 |
Improper use of school bus |
- not to exceed five hundred dollars ($500) for each day of improper use |
|
31-22-22(b) |
No child restraint |
50.00 |
|
31-22-22(c) |
Child restraint/seat belt but not in back seat |
50.00 |
|
31-22-22(e), ( |
No seat belt - passenger |
50.00 |
|
31-22-22(f) |
No seat belt operator |
50.00 |
|
31-22-23 (b) |
Tow trucks - proper identification |
|
|
31-22-23 (c) |
Tow trucks - "limited towing" identification |
|
|
31-22-23 (c) |
First offense |
Not more than 100.00 |
|
31-22-23 (c) |
Second offense |
Not more than 250.00 |
|
31-22-23 (c) |
Third offense |
Not more than 500.00 |
|
31-22-24 |
Operation of interior lights |
50.00 |
|
31-22-28 (b) |
Transporting animals - first offense |
Not more than 50.00 |
|
31-22-28 (b) |
Second and subsequent offenses |
Not
more than 200.00 |
|
31-23-01(b) |
U.S. department of transportation motor carrier safety rules and regulations |
|
|
31-23-01 (b)(4) |
Unauthorized removal of "out of service vehicle" sticker |
100.00 |
|
31-23-01 (b)(5) |
Operation of "out of service vehicle" |
100.00 |
|
31-23-04 |
Brake equipment required |
50.00 |
|
31-23-08 |
Horn required |
50.00 |
|
31-23-10 |
Sirens prohibited |
50.00 |
|
31-23-13 |
Muffler required |
50.00 |
|
31-23-13.1 |
Altering height or operating a motor vehicle with an altered height |
50.00 |
|
31-23-14 |
Prevention of excessive fumes or smoke |
50.00 |
|
31-23-15 |
Rear view mirror |
50.00 |
|
31-23-16 |
Windshield and window stickers (visibility) |
50.00 |
|
31-23-17 |
Windshield wipers |
50.00 |
|
31-23-19 |
Metal tires prohibited |
50.00 |
|
31-23-20 |
Protuberances on tires |
50.00 |
|
31-23-26 |
Fenders and wheel flaps required |
50.00 |
|
31-23-27 |
Rear wheel flaps on buses, trucks and trailers |
50.00 |
|
31-23-29 |
Flares or red flag required over four thousand pounds (4,000 lbs.) |
50.00 |
|
31-23-38 |
Television receivers prohibited |
|
|
31-23-40 |
Approved types of seat belt requirements |
50.00 |
|
31-23-42.1 |
Special mirror - school bus |
50.00 |
|
31-23-43 |
Chocks required (1 pair) - over four thousand pounds (4,000 lbs.) |
50.00 |
|
31-23-45 |
Tire treads - defective tires |
50.00 |
|
31-23-47 |
Slow moving emblem required |
50.00 |
|
31-23-49 |
Transportation of gasoline - passenger vehicle |
50.00 |
|
31-23-51 (1) |
Operating bike or motor vehicle wearing ear phones (first offense) |
50.00 |
|
31-23-51 (2) |
Second offense |
70.00 |
|
31-23-51 (3) |
Third and subsequent offenses |
140.00 |
|
31-24-01 through 31-24- |
Times when lights required |
|
|
|
|
|
|
31-24-05 |
Headlamp required on motorcycle |
50.00 |
|
31-24-31 |
Flashing lights - permit required |
50.00 |
|
31-24-34 |
Failure to dim lights |
50.00 |
|
31-24-45 |
Red flag required, load projecting four feet (4') rear |
50.00 |
|
31-25-03 |
Maximum width of one hundred and two inches (102") exceeded |
50.00 |
|
31-25-04 |
Maximum height of one hundred sixty-two inches (162") exceeded |
50.00 |
|
31-25-06 |
Maximum number and length of coupled vehicles |
500.00 |
|
31-25-07 |
Load extending three feet (3') front, six feet (6') rear exceeded |
50.00 |
|
31-25-09 |
Leaking load |
50.00 |
|
31-25-10 (d)(1) |
Fastening of load and covering - first offense |
|
|
31-25-10 (d) (1) |
Second and subsequent offenses |
Not less than 100.00 or more than 500.00 |
|
31-25-11 |
Connections between coupled vehicles |
50.00 |
|
31-25-12 |
Towing chain, twelve inch (12") square flag required |
50.00 |
|
31-25-12.1 (b)(1) |
Tow truck - use of lanes (first offense) |
50.00 |
|
31-25-12.1 (b)(2) |
Second offense |
75.00 |
|
31-25-12.1 (b)(3) |
Third offense and subsequent offenses |
100.00 |
|
31-25-13 |
Axle load limit |
150.00 |
|
31-25-14(d)(1) |
Maximum weight and tandem axles |
100.00 |
|
31-25-14(d)(2) |
Maximum weight and tandem axles |
100.00 |
|
31-25-14(d)(3) |
Maximum weight and tandem axles |
100.00 |
|
31-25-16(c)(1) |
Maximum weight shown in registration |
|
|
31-25-16(c)(2) |
Maximum weight shown in registration |
|
|
31-25-16(c)(3) |
Maximum weight shown in registration |
1,000 plus $60.00 per thousand pounds overweight or portion therof |
|
31-25-17 |
Identification of trucks and truck-tractors (first offense) |
50.00 |
|
31-25-24 |
Carrying and inspection of excess load limit |
150.00 |
|
31-27-02.3 |
Refusal to take preliminary breath test |
50.00 |
|
31-28-07( |
Wrongful use of handicapped parking placard |
100.00 |
|
31-28-07( |
Handicapped parking space violation |
|
|
31-28-07(f)(1) |
First offense |
75.00 |
|
31-28-07(f)(2) |
Second offense |
150.00 |
|
31-28-07(f)(3) |
Third offense and subsequent offenses |
300.00 |
|
31-28-07 (j) |
Counterfeit handicapped parking placard |
Up to $500.00 |
|
31-28-07.1(e) |
Wrongful use of institutional handicapped parking placard |
100.00 |
|
31-33-02 |
Failure to file accident report |
50.00 |
|
31-36.1-17 (a)(1) |
No fuel tax stamp (out-of-state) - first violation |
50.00 |
|
31-36-17 (a)(2) |
Second and subsequent violations |
Not exceeding 100.00 |
|
31-38-03 |
No inspection sticker |
50.00 |
|
31-38-04 |
Violation of inspection laws |
50.00 |
|
31-45-01 |
Noise limits |
50.00 |
|
31-45-05 |
Audio Systems |
50.00 |
|
31-47.2-06 |
Heavy-duty vehicle emission inspections |
|
|
31-47.2-06 (a)(1) |
First offense |
100.00 |
|
31-47.2-06 (a)(2) |
Second offense |
500.00 |
|
31-47.2-06 (a)(3) |
Third offense |
1,000.00 |
|
37-15-07(a) |
Littering - first offense |
Not less than 50.00 nor more than 500.00 |
|
37-15-07(b) |
Littering - second offense |
Not less than three hundred dollars ($300) nor more than five hundred dollars ($500) |
|
39-12-26 |
Public carriers violation |
50.00 |
SPEEDING
|
Fine |
|
(A) One to fifteen miles per hour (1-15 mph) in excess of posted speed limit |
$50.00 |
|
(B) Sixteen miles per hour (16 mph) in excess of posted speed limit with a fine of ten dollars ($10.00) per mile in excess of speed limit shall be assessed. |
160.00 minimum |
(b) In addition to any other penalties provided
by law, a judge may impose the following penalties for speeding:
(i) For
speeds up to and including fifteen miles per hour (15 mph) over the posted
speed limit on public highways, a fine as provided for in subsection (a) of
this section for the first offense, ten dollars ($10.00) per mile for each mile
in excess of the speed limit for the second offense if within twelve (12)
months of the first offense, and fifteen dollars ($15.00) per mile for each
mile in excess of the speed limit for the third and subsequent offense if
within twelve (12) months of the first offense. In addition, the license may be
suspended up to thirty (30) days.
(ii) For speeds in
excess of fifteen miles per hour (15 mph) over the posted speed limit on public
highways, a mandatory fine of ten dollars ($10.00) for each mile over the speed
limit for the first offense, fifteen dollars ($15.00) per mile for each mile in
excess of the speed limit for the second offense if within twelve (12) months
of the first offense, and twenty dollars ($20.00) per mile for each mile in
excess of the speed limit for the third and subsequent offense if within twelve
(12) months of the first offense. In addition, the license may be suspended up
to sixty (60) days.
(c) Any person
charged with a violation who pays the fine administratively pursuant to chapter
8.2 of title 8 is not subject to any additional costs or assessments, including
but not limited to the hearing fee established in § 8-18-4 or assessment for
substance abuse prevention.
SECTION 58. Sections
27-25-10, 27-25-13, 27-25-19, 27-25-27 and 27-25-44 of the General Laws in
Chapter 27-25 entitled "Rhode Island Fraternal Code" are hereby
amended to read as follows:
27-25-10. Organization. -- A domestic society organized on or after
January 1, 1985, shall be formed as follows:
(1) Seven (7) or more
citizens of the United States, a majority of whom are citizens of this state,
who desire to form a fraternal benefit society, may make, sign, and acknowledge
before some officer competent to take acknowledgment of deeds, articles of
incorporation, in which shall be stated:
(i) The proposed
corporate name of the society, which shall not so closely resemble the name of
any society or insurance company as to be misleading or confusing;
(ii) The purposes for
which it is being formed and the mode in which its corporate powers are to be
exercised. Those purposes shall not include more liberal powers than are
granted by this chapter; and
(iii) The names and residences
of the incorporators and the names, residences, and official titles of all the
officers, trustees, directors, or other persons who are to have and exercise
the general control of the management of the affairs and funds of the society
for the first year or until the ensuing election at which all of the officers
shall be elected by the supreme governing body, which election shall be held
not later than one year from the date of the issuance of the permanent
certificate of authority;
(2) The articles of
incorporation, duly certified copies of the society's bylaws and rules, copies
of all proposed forms of certificates, applications therefor for them,
and circulars to be issued by the society and a bond conditioned upon the
return to applicants of the advanced payments if the organization is not
completed within one year, shall be filed with the commissioner of insurance,
who may require any further information the commissioner deems necessary. The
bond with sureties approved by the commissioner of insurance shall be in an
amount, not less than three hundred thousand dollars ($300,000) nor more than
one million five hundred thousand dollars ($1,500,000), as required by the
commissioner of insurance. All documents filed are to be in the English language.
If the purposes of the society conform to the requirements of this chapter and
all of the provisions of the law have been complied with, the commissioner of
insurance shall so certify, retain, and file the articles of incorporation and
furnish the incorporators with a preliminary certificate of authority
authorizing the society to solicit members;
(3) No preliminary
certificate of authority granted under the provisions of this section shall be
valid after one year from its date or after a further period, not exceeding one
year, as may be authorized by the commissioner of insurance upon cause shown,
unless the five hundred (500) applicants have been secured and the organization
has been completed as herein provided in this section. The
articles of incorporation and all other proceedings thereunder under
the articles shall become null and void in one year from the date of the
preliminary certificate of authority, or at the expiration of the extended
period, unless the society shall have completed its organization and received a
certificate of authority to do business;
(4) Upon receipt of a
preliminary certificate of authority from the commissioner of insurance, the
society may solicit members for the purpose of completing its organization,
shall collect from each applicant the amount of not less than one regular
monthly premium in accordance with its table of rates, and shall issue to each
applicant a receipt for the amount so collected. No society shall incur any
liability other than for the return of the advance premium, nor issue any
certificate, nor pay, allow, or offer or promise to pay or allow, any benefit
to any person until:
(i) Actual bona fide
applications for benefits have been secured on not less than five hundred (500)
applicants, and any necessary evidence of insurability has been furnished to
and approved by the society;
(ii) At least ten
(10) subordinate lodges have been established into which the five hundred (500)
applicants have been admitted;
(iii) There has been
submitted to the commissioner of insurance, under oath of the president or
secretary or corresponding officer of the society, a list of the applicants,
giving their names, addresses, date each was admitted, name and number of the
subordinate lodge of which each applicant is a member, amount of benefits to be
granted and premiums therefor for the benefits; and
(iv) It shall have
been shown to the commissioner of insurance, by sworn statement of the
treasurer or corresponding officer of the society, that at least five hundred
(500) applicants have each paid in cash at least one regular monthly premium as
herein provided in this section, which premiums in the aggregate
shall amount to at least one hundred and fifty thousand dollars ($150,000). The
advance premiums shall be held in trust during the period of organization and
if the society has not qualified for a certificate of authority within one
year, the premiums shall be returned to the applicant;
(5) The commissioner
of insurance may make any examination and require any further information as
the commissioner deems advisable. Upon presentation of satisfactory evidence
that the society has complied with all of the provisions of law, the
commissioner shall issue to the society a certificate of authority to that
effect and that the society is authorized to transact business pursuant to the
provisions of this chapter. The certificate of authority shall be prima facie
evidence of the existence of the society at the date of the certificate. The
commissioner of insurance shall cause a record of the certificate of authority
to be made. A certified copy of the record may be given in evidence with like
effect as the original certificate of authority; and
(6) Any incorporated
society authorized to transact business in this state at the time this chapter
becomes effective shall not be required to reincorporate.
27-25-13. Reinsurance. -- (a) A domestic society may, by a reinsurance
agreement, cede any individual risk or risks in whole or in part to an insurer,
other than another fraternal benefit society, having the power to make
reinsurance and authorized to do business in this state, or, if not so
authorized, one which is approved by the commissioner of insurance, but no
society may reinsure substantially all of its insurance in force without the
written permission of the commissioner of insurance. It may take credit for the
reserves on the ceded risks to the extent reinsured, but no credit shall be
allowed as an admitted asset or as a deduction from liability, to a ceding
society for reinsurance made, ceded, or renewed, or otherwise
becoming effective after January 1, 1985, unless the reinsurance is payable
by the assuming insurer on the basis of the liability of the ceding society
under the contract or contracts reinsured without diminution because of the
insolvency of the ceding society.
(b) Notwithstanding
the limitation in subsection (a) of this section, a society may reinsure
the risks of another society in a consolidation or merger approved by the
commissioner of insurance under § 27-25-14.
27-25-19. The benefit
contract. -- (a) Every society
authorized to do business in this state shall issue to each owner of a benefit
contract a certificate specifying the amount of benefits provided thereby
by the contract. The certificate, together with any riders or
endorsements attached thereto to it, the laws of the society, the
application for membership, the application for insurance and declaration of
insurability, if any, signed by the applicant, and all amendments to each,
shall constitute the benefit contract, as of the date of issuance, between the
society and the owner, and the certificate shall so state. A copy of the
application for insurance and declaration of insurability, if any, shall be
endorsed upon or attached to the certificate. All statements on the application
shall be representations and not warranties. Any waiver of this provision shall
be void.
(b) Any changes,
additions, or amendments to the laws of the society duly made or enacted
subsequent to the issuance of the certificate, shall bind the owner and the
beneficiaries, and shall govern and control the benefit contract in all
respects the same as though those changes, additions, or amendments had been
made prior to and were in force at the time of the application for insurance,
except that no change, addition, or amendment shall destroy or diminish
benefits which the society contracted to give the owner as of the date of
issuance.
(c)
Any person upon whose life a benefit contract is issued prior to attaining the
age of majority shall be bound by the terms of the application and certificate
and by all the laws and rules of the society to the same extent as though the
age of majority had been attained at the time of application.
(d) A society shall
provide in its laws that if its reserves as to all or any class of certificates
become impaired its board of directors or corresponding body may require that
there shall be paid by the owner to the society the amount of the owner's
equitable proportion of the deficiency as ascertained by its board, and that if
the payment is not made either (1) it shall stand as an indebtedness against
the certificate and draw interest not to exceed the rate specified for
certificate loans under the certificates; or (2) in lieu of or in combination with
clause subdivision (1) of this subsection, the owner may
accept a proportionate reduction in benefits under the certificate. The society
may specify the manner of the election and which alternative is to be presumed
if no election is made.
(e) Copies of any of
the documents mentioned in this section, certified by the secretary or
corresponding officer of the society, shall be received in evidence of the
terms and conditions thereof of the documents.
(f) No certificate
shall be delivered or issued for delivery in this state unless a copy of the
form has been filed with the commissioner of insurance in the manner provided
for like policies issued by life insurers in this state. Every life, accident,
health, or disability insurance certificate and every annuity certificate issued
on or after January 1, 1986, shall meet the standard contract provision
requirements not inconsistent with this chapter for like policies issued by
life insurers in this state, except that a society may provide for a grace
period for the payment of premiums of one full month in its certificate. The
certificate shall also contain a provision stating the amount of premiums which
are payable under the certificate and a provision reciting or setting forth the
substance of any sections of the society's laws or rules in force at the time
of issuance of the certificate which, if violated, will result in the
termination or reduction of benefits payable under the certificate. If the laws
of the society provide for expulsion or suspension of a member, the certificate
shall also contain a provision that any member so expelled or suspended, except
for nonpayment of a premium or within the contestable period for material
misrepresentations in the application for membership or insurance, shall have
the privilege of maintaining the certificate in force by continuing payment of
the required premium.
(g) Benefit contracts
issued on the lives of persons below the society's minimum age for adult
membership may provide for the transfer of control or ownership to the insured
at an age specified in the certificate. A society may require approval of an
application for membership in order to effect this transfer, and may provide in
all other respects for the regulation, government, and control of the certificates
and all of the rights, obligations, and liabilities incident thereto to
and connected therewith with the certificates. Ownership rights
prior to the transfer shall be specified in the certificate.
(h) A
society may specify the terms and conditions on which benefit contracts may be
assigned.
27-25-27. Annual
license. -- (a) The authority
of existing societies and all societies hereafter licensed shall
be continuous unless sooner revoked or suspended as provided in this chapter.
For each license the society shall pay the commissioner of insurance one
hundred dollars ($100). The society shall further pay a license fee of one
hundred dollars ($100) annually prior to April 30 of each year. A duly
certified copy or duplicate of the license shall be prima facie evidence that
the licensee is a fraternal benefit society within the meaning of this chapter.
(b) The commissioner
may assess a late fee of ten dollars ($10.00) per day for each day the society
is late in remitting its annual license fee.
27-25-44. Fraternal
benefit society assessment. -- (a)
Notwithstanding any other provisions of law, each domestic fraternal benefit
society shall be charged an assessment to partially support the activities of
the division of insurance in the department of business regulation.
(b) Commencing in
fiscal year 1990-1991, Each society's assessment shall be determined in
accordance with the following ratio: (1) by dividing the society's total direct
premiums, including annuities, less policyholder dividends by total direct
premiums, including annuties annuities, less policyholder
dividends of all domestic insurance companies plus the total direct premiums of
domestic companies licensed or regulated pursuant to chapters 19, 20, 20.1,
20.2, 20.3, 25, and 41 of this title, and chapter 62 of title 42, and then by
(2) multiplying the resulting ratio times two hundred thousand dollars
($200,000).
(c) The minimum
assessment charged shall be the greater of the sum determined by subsection (b)
of this section or one thousand dollars ($1,000).
SECTION 59. Section
27-29-11 of the General Laws in Chapter 27-29 entitled "Unfair Competition
and Practices" is hereby amended to read as follows:
27-29-11. Immunity from prosecution. -- If any person shall ask to be excused from attending and testifying or
from producing any books, papers, records, correspondence or other documents at
any hearing on the ground that the testimony or evidence required may tend to
incriminate or subject the person to a penalty or forfeiture, and shall
notwithstanding be directed to give the testimony or produce the evidence, the
person shall nonetheless comply with the direction, but shall not thereafter be
prosecuted or subjected to any penalty or forfeiture for on account of
any transaction, matter, or thing concerning on which the person may
testify or produce evidence, thereto, and no testimony so given
or evidence produced shall be received against the person upon any criminal
action, investigation, or proceeding.; provided, however However,
that no person so testifying shall be exempt from prosecution or
punishment for any perjury committed while so testifying and the testimony or
evidence so given or produced shall be admissible against the person upon any
criminal action, investigation, or proceeding concerning that perjury, nor
shall the person be exempt from the refusal, revocation, or suspension of any
license, permission, or authority conferred, or to be conferred, pursuant to
the insurance law of this state. Any person may execute, acknowledge, and file
in the office of the commissioner a statement expressly waiving this immunity
or privilege in respect to any transaction, matter, or thing specified in the
statement and thereupon the testimony of the person or the evidence in relation
to the transaction, matter, or thing may be received or produced before any
judge or justice, court, tribunal, grand jury, or otherwise, and if so received
or produced the person shall not be entitled to any immunity or privilege on
account of any testimony the person may so give or evidence so produced.
SECTION 60. Section
27-32-8.1 of the General Laws in Chapter 27-32 entitled "Pension, Profit
Sharing or Annuity Plans" is hereby amended to read as follows:
27-32-8.1.
Individual variable life insurance. -- Notwithstanding the provisions of § 27-32-8, the provisions of §§ 27-4-14
and 27-4-15 shall not apply to a variable life insurance policy; provided,
however, Any individual
variable life insurance contract delivered or issued for delivery in this state
shall contain nonforfeiture provisions appropriate to this a type of
contract as approved by the director of business regulation.
SECTION 61. Sections
27-34-5, 27-34-7, 27-34-8 and 27-34-9 of the General Laws in Chapter 27-34
entitled "Rhode Island Insurers' Insolvency Fund" are hereby amended
to read as follows:
27-34-5.
Definitions. -- As used in this
chapter:
(1)
"Account" means any one of the three (3) accounts created by §
27-34-6;
(2)
"Affiliate" means a person, who directly or indirectly, through one or
more intermediaries, controls, is controlled by, or is under common control
with an insolvent insurer on December 31 of the year next preceding the date
the insurer becomes an insolvent insurer;
(3)
"Claimant" means any insured making a first party claim or any person
instituting a liability claim; provided that no person who is an affiliate of
the insolvent insurer may be a claimant;
(4) "Commercial
lines excess liability insurance" means any commercial lines liability
insurance written over an underlying policy with policy limits of at least
$300,000 or a self-insured retention of at least $300,000;
(5) "Commercial
lines insurance" means any insurance to which this chapter applies which
is not personal lines insurance;
(6)
"Commissioner" means the commissioner of insurance;
(7)
"Control" means the possession, direct or indirect, of the power to
direct or cause the direction of the management and policies of a person,
whether through the ownership of voting securities, by contract other than a
commercial contract for goods or nonmanagement services, or otherwise, unless
the power is the result of an official position with, or corporate office held
by, the person. Control shall be presumed to exist if any person, directly or
indirectly, owns, controls, holds with the power to vote, or holds proxies
representing, ten percent (10%) or more of the voting securities of any other
person. This presumption may be rebutted by a showing that control does not
exist in fact;
(8) "Covered
claim" means an unpaid claim, including one for unearned premiums,
submitted by a claimant, which arises out of and is within the coverage and
subject to the applicable limits of an insurance policy to which this chapter
applies issued by an insurer, if the insurer becomes an insolvent
insurer on or after July 1, 1988 and:
(i) The claimant or
insured is a resident of this state at the time of the insured event; provided,
that for entities other than an individual, the residence of a claimant or
insured is the state in which its principal place of business is located at the
time of the insured event; or
(ii) The property
from which the claim arises is permanently located in this state. "Covered
claim" shall not include any amount:
(A) Awarded as
punitive or exemplary damages;
(B) Sought as a
return of premium under any retrospective rating plan; or
(C) Due any
reinsurer, insurer, insurance pool, or underwriting association, as subrogation
recoveries or otherwise; provided, that a claim for any amount, asserted
against a person insured under a policy issued by an insurer which has become
an insolvent insurer, which, if it were not a claim by or for the benefit of a
reinsurer, insurer, insurance pool, or underwriting association, would be a
"covered claim", may be filed directly with the receiver of the
insolvent insurer, but in no event may any the claim be asserted against the
insured of the insurer;
(9) "Fund"
means the Rhode Island insurers' insolvency fund created under § 27-34-6;
(10) "Insolvent
insurer" means an insurer licensed to transact in this state any of the
kinds of insurance within the scope of this chapter, either at the time the
policy was issued or when the insured event occurred, against which an order of
liquidation with a finding of insolvency has been entered on or after July
1, 1988, by a court of competent jurisdiction in the insurer's state of
domicile or in this state under the provision(s) of chapter 14.3 of this title
which order of liquidation has not been stayed or been the subject of a writ of
supersedeas or other comparable order;
(11) "Member
insurer" means any person who:
(i) Writes any kind
of insurance to which this chapter applies, including the exchange of
reciprocal or interinsurance contracts; and
(ii) Is licensed to
transact insurance in this state;
(12) " Net
direct written premiums" means direct gross premiums written in this state
on insurance policies to which this chapter applies, less return premiums thereon
on those policies and dividends or unabsorbed premiums paid or credited
to policyholders on the direct business. "Net direct written
premiums" does not include premiums on contracts between insurers or
reinsurers;
(13)
"Person" means any individual, corporation, partnership, association,
or voluntary organization;
(14) "Personal
lines insurance" means any insurance to which this chapter applies issued
for personal, family, or household purposes;
(15) "Pleasure
craft" means watercraft, other than a seaplane on the water or a
houseboat, not greater than thirty-five (35) feet in length used solely for
pleasure and not used for:
(i) Charter or hire;
or
(ii) To carry persons
or property for fee or any commercial use; and
(16)
"Self-insured retention" means:
(i) Any fund or other
arrangement to pay claims other than by an insurance company; or
(ii) Any arrangement
under which an insurance company has no obligation to pay claims on behalf of
an insured if it is not reimbursed by the insured.
27-34-7. Board of
directors. -- (a) The board of
directors of the fund shall consist of not less than five (5) nor more than
nine (9) persons serving terms as established in the plan of operation. The
members of the board shall be selected by member insurers subject to the
approval of the commissioner. Vacancies on the board shall be filled for the
remaining period of the term by a majority vote of the remaining board members
subject to the approval of the commissioner. If no members are selected
within sixty (60) days after July 1, 1988, the commissioner may appoint the
initial members of the board of directors.
(b) In approving
selections to the board, the commissioner shall consider among other things
whether all member insurers are fairly represented.
(c) Members
of the board of directors may be reimbursed from the assets of the fund for
expenses incurred by them as members of the board of directors.
27-34-8. Powers and
duties of the fund. -- (a) The
fund shall:
(1) Be obligated to
pay covered claims existing prior to the determination of the insolvency of a
member insurer or arising within sixty (60) days after the determination of the
insolvency or before the policy expiration date if less than sixty (60) days
after the determination of insolvency or before the insured replaces the policy
or causes its cancellation if he or she does so within sixty (60) days of the
determination. The
obligations shall be satisfied by paying to
the claimant an amount as follows:
(i) The full amount
of a covered claim for benefits under a workers' compensation insurance
coverage;
(ii) An amount not
exceeding ten thousand dollars ($10,000), per policy for a covered claim for
the return of unearned premium;
(iii) An amount not
exceeding three hundred thousand dollars ($300,000), per claimant for all other
covered claims. In no event shall the fund be obligated to pay a claimant an
amount in excess of the obligation of the insolvent insurer under the policy or
coverage from which the claim arises. Notwithstanding any other provision of
this chapter, a covered claim shall not include any claim filed with the fund
after the final date set by the court for the filing of claims against the
liquidator or receiver of an insolvent insurer. The fund shall pay only that
amount of each unearned premium, which is in excess of one hundred
dollars ($100);
(2) Be deemed the
insurer to the extent of its obligation on the covered claims and to that
extent shall have all of the rights, duties and obligations of the insolvent
insurer as if the insurer had not become insolvent;
(3) Allocate claims
paid and expenses incurred among the three (3) accounts separately, and assess
member insurers separately for each account amounts necessary to pay the
obligations of the fund under subsection (a) subdivision (1) of
this subsection subsequent to an insolvency, the expenses of handling
covered claims subsequent to an insolvency and other expenses authorized by
this chapter. The assessments of each member insurer shall be in the proportion
that the net direct written premiums of the member insurer for the calendar year
preceding the assessment on the kinds of insurance in the account bears to the
net direct written premiums of all member insurers for the calendar year
preceding the assessment on the kinds of insurance in the account. Each member
insurer shall be notified of the assessment not later than thirty (30) days
before it is due. No member insurer may be assessed in any one year on any
account an amount greater than two percent (2%) of that member insurer's net
direct written premiums for the calendar year preceding the assessment on the
kinds of insurance in the account. If the maximum assessment, together with the
other assets of the fund in any account, does not provide in any one year in
any account an amount sufficient to make all necessary payments from that
account, each member insurer shall be assessed the additional amount that must
be obtained to make all necessary payments of the underfunded account from the
other two accounts, subject to the same limitation of two percent (2%) of that
member insurer's net direct written premiums for the calendar year preceding
the assessment on the kinds of insurance in the account, subject to the
limitation that the ability to assess from different accounts to make all
necessary payments from any underfunded account shall lapse on December 31,
1998. The additional assessments shall be considered loans by and between the
separate accounts. Amounts borrowed under this subsection shall be paid back to
the separate accounts from which they were borrowed, out of assets, including,
but not limited to, existing and future assessments in the account receiving
the loan. An interest charge shall be levied on all amounts borrowed under this
subsection based on the average prime rate of interest for each year the money
remains unpaid. If the amounts borrowed remain unpaid on the seventh yearly
anniversary as a result of the inability of the borrowing account to make
repayment, then the amount borrowed and interest which is not repaid, starting
with the principal and interest of the first year, shall be considered
uncollectible. The funds available shall be prorated and the unpaid portion
shall be paid as soon thereafter as funds become available. The fund shall pay
claims in any order which it deems reasonable, including the payment of claims
as they are received from the claimants or in groups or categories of claims.
The fund may exempt or defer, in whole or in part, the assessment of any member
insurer if the assessment would cause the member insurer's financial statement
to reflect amounts of capital or surplus less than the minimum amounts required
for a certificate of authority by any jurisdiction in which the member insurer
is authorized to transact insurance; provided, however, that.
However, during the period of deferment, no dividends shall be paid to
shareholders or policyholders. Deferred assessments shall be paid when the
payment will not reduce capital or surplus below required minimums. The
payments shall be refunded to those companies receiving larger assessments by
virtue of the deferment, or, at the election of any company, credited against
future assessments.
(4) Investigate
claims brought against the fund and adjust, compromise, settle, and pay covered
claims to the extent of the fund's obligation and deny all other claims, and
may review settlements, releases, and judgments to which the insolvent insurer
or its insureds were parties, to determine the extent to which the settlements,
releases, and judgments may be properly contested;
(5) Notify the
insureds as the commissioner directs under § 27-34-10(b)(1);
(6) Handle claims
through its employees or through one or more insurers or other persons
designated as servicing facilities. Designation of a servicing facility is
subject to the approval of the commissioner, but the designation may be
declined by a member insurer;
(7) Reimburse each
servicing facility for obligations of the fund paid by the facility and for
expenses incurred by the facility while handling claims on behalf of the fund
and shall pay the other expenses of the fund authorized by this chapter; and
(8) (i) Within
thirty (30) days after June 18, 1991 Obtain an irrevocable line of credit
agreement from each member insurer in an amount not to exceed the member
insurer's maximum assessment pursuant to subsection (a) subdivision
(3) of this subsection to ensure the immediate availability of funds for
the purposes of future claims and expenses attributable to an insurer
insolvency;
(ii) Any amount drawn
from the fund under any line of credit shall be considered a payment toward the
member insurer's assessment provided for in subsection (a) subdivision
(3) of this subsection;
(iii) The member
insurer shall provide funding to the fund under the line of credit within three
(3) business days of receipt of a written request from the fund for a draw-down
under the line of credit;
(iv) The line of
credit agreement shall be subject to prior review and approval by the
commissioner at the time of origination and any subsequent renewal. It shall
include any commercially reasonable provisions the fund or the commissioner may
deem advisable, including a provision that the line of credit is irrevocable or
for a stated period of time and provides for thirty (30) day notice to the fund
and the commissioner that the line is being terminated or not renewed;
(v) If a line of
credit is not given as provided for in this section, the member insurer shall
be responsible for the payment of an assessment of up to the member's
proportionate share of the applicable maximum as set forth in this subsection
which shall be paid into a pre-insolvency assessment fund in each account.
(b) The fund may:
(1) Employ or retain
those persons necessary to handle claims and perform other duties of the fund;
(2) Borrow funds
necessary to effect the purposes of this chapter in accord with the plan of
operation;
(3) Sue or be sued;
(4)
Negotiate and become a party to any contracts necessary to carry out the
purpose of this chapter;
(5) Perform any other
acts necessary or proper to effectuate the purpose of this chapter; and
(6) Refund to the
member insurers in proportion to the contribution of each member insurer to
that account that amount by which the assets of the account exceed the
liabilities, if, at the end of any calendar year, the board of directors finds
that the assets of the fund in any account exceed the liabilities of that
account as estimated by the board of directors for the coming year.
27-34-9. Plan of
operation. -- (a) The fund
shall submit to the commissioner a plan of operation and any amendments thereto
to the plan necesssary necessary or suitable to assure the
fair, reasonable, and equitable administration of the fund. The plan of
operation and any amendments thereto to it shall become effective
upon approval in writing by the commissioner.
(b) If the fund fails
to submit a suitable plan of operation within ninety (90) days after July 1,
1988, or if at any time thereafter the fund fails to submit suitable
amendments to the plan, the commissioner shall, after notice and hearing, adopt
and promulgate any reasonable rules necessary or advisable to effectuate the
provisions of this chapter. The rules shall continue in force until modified by
the commissioner or superseded by a plan or amendments thereto to it
submitted by the fund and approved by the commissioner.
(c) All member
insurers shall comply with the plan of operation.
(d) The plan of
operation shall:
(1) Establish the
procedures where all of the powers and duties of the fund under § 27-34-8 will
be performed;
(2) Establish the
procedures for handling the assets of the fund;
(3) Establish the
amount and method of reimbursing members of the board of directors under §
27-34-7;
(4) Establish
procedures by which claims may be filed with the fund and establish acceptable
forms of proof of covered claims. Notice of claims to the receiver or
liquidator of the insolvent insurer shall be deemed notice to the fund or its
agent, and a list of claims shall be periodically submitted to the fund
or similar organization in another state by the receiver or liquidator;
(5) Establish regular
places and times for meetings of the board of directors;
(6) Establish
procedures for records to be kept of all financial transactions of the fund,
its agents, and the board of directors;
(7) Provide that any
member insurer aggrieved by any final action or decision of the fund may appeal
to the commissioner within thirty (30) days after the action or decision;
(8) Establish the procedures
whereby by which selections for the board of directors will be
submitted to the commissioner; and
(9) Contain
additional provisions necessary or proper for the execution of the powers and
duties of the fund.
(e) The plan of
operation may provide that any or all powers and duties of the fund, except
those under §§ 27-34-8(a)(3) and 27-34-8(b)(2), may be delegated to a
corporation, association, or other organization which performs or will perform
functions similar to those of the fund, or its equivalent, in two or more
states. That corporation, association, or organization shall be reimbursed as a
servicing facility would be reimbursed and shall be paid for its performance of
any other functions of the fund. A delegation under this subsection shall take
effect only with the approval of both the board of directors and the
commissioner, and may be made only to a corporation, association, or
organization which extends protection not substantially less favorable and
effective than that provided by this chapter.
SECTION 62. Section
21-28.2-3 of the General Laws in Chapter 21-28.2 entitled "Drug Abuse
Control" is hereby amended to read as follows:
21-28.2-3. Admission of narcotic addict on civil
certification. -- A justice of the
family court or a judge of the district court may certify a narcotic addict to
the care and custody of the department in the following manner:
(1)(a) Except as provided hereafter in this section, whenever any
narcotic addict desires to obtain treatment for his or her addiction, whenever
a related individual has reason to believe that any person is a narcotic
addict, or whenever the director of health has reason to believe that any
person is a narcotic addict, the addict, related individual, or director of
health may apply for an order certifying that person to the care and custody of
the department by presenting a verified petition setting forth knowledge,
information, or belief that the person is a narcotic addict, together with a
statement of the facts upon which that knowledge, information, or belief is
based. When such a the petition is presented, the court may
examine the petitioner, or any witness, under oath and shall determine whether
there are reasonable grounds to believe that the person in whose behalf the
application is made is a narcotic addict. If the court determines that there
are reasonable grounds to believe that the person is a narcotic addict, and if
the person is not also the petitioner, it shall issue an order in accordance
with subdivision (b) (2) of this section; provided, however, that
if the court further determines that the person would not comply with any
such the order the court shall issue, in lieu of an order, a warrant
in accordance with subdivision (c) (3) of this section. When the
alleged addict is the petitioner and the court determines that there are
reasonable grounds to believe that the person is a narcotic addict, the court
shall immediately proceed in accordance with subdivision (d) (4)
of this section. The state shall be a party in all proceedings pursuant to this
section and shall act on the relation of the petitioner. The attorney general
shall represent the state.
(2)(b) An order issued pursuant to this section shall direct the alleged
narcotic addict to appear at a specified time before the court for a
determination whether there are reasonable grounds to order that person to
undergo a medical examination at a facility or by two (2) physicians designated
by the director. The court shall direct that the order and petition be served
upon the alleged narcotic addict personally or by registered mail and the court
may further direct that the order and petition be served personally or by mail
upon the husband or wife, father or mother, or next of kin of the alleged narcotic
addict.
(3)(c) A warrant issued pursuant to this section shall be directed to any
police officer in the state commanding the officer: (i) to take the
alleged narcotic addict into custody, and (ii) to bring the alleged
narcotic addict forthwith immediately before the court for a
determination whether there are reasonable grounds to order him or her to
undergo a medical examination at a facility designated by the department. If
the court is not then in session, the alleged narcotic addict may be held at a
facility designated by the department or at any other detention facility until
the court is in session. In such a case, the head of the facility or a duly
appointed representative shall advise the alleged addict of the nature of the
proceeding, the reason for his or her detention, and that he or she will appear
before a judge at the next court session in connection with the allegation that
he or she is a narcotic addict. This person shall also inform the alleged
addict that he or she has the right to the aid of counsel at every stage of the
proceedings, and that if the person desires the aid of counsel and is
financially unable to obtain counsel, counsel shall be assigned by the court,
and that he or she is entitled to communicate free of charge, by telephone or
letter, in order to obtain counsel and in order to inform a relative or friend
of the proceeding. Such a The warrant may be executed on any day
including Saturdays, Sundays, and holidays and the alleged narcotic addict
shall not be subjected to any more restraint than is necessary for the purposes
specified in the warrant. The police officer shall exhibit the warrant to the
alleged narcotic addict, and inform the alleged addict of the purpose for which
he or she is being taken into custody. The officer shall not break open any
outer or inner door or window of a building, or any part of the building, or
anything therein in a building, to execute the warrant unless, if,
after notice of the officer's authority and purpose, he or she is refused
admittance. The warrant must be executed within thirty (30) days after its date
and if not so executed shall be void.
(4)(d) Upon the appearance of the alleged narcotic addict the court shall
provide the alleged addict with a copy of any paper not yet served upon him or
her and shall explain that, if the court finds reasonable grounds to believe
that the person is a narcotic addict, it shall order him or her to undergo a
medical examination at a facility or by two (2) physicians designated by the
department. The court shall then advise the alleged narcotic addict that if such
the medical examination is ordered the alleged addict shall appear
before the court after such the examination as provided in subdivision
(e)(1) paragraph (5)(i) of this section, and, if the petition and
the report of the medical examination set forth reasonable grounds to believe
that the person is a narcotic addict, he or she may thereafter be certified to
the care and custody of the department for an indefinite period not exceeding
three (3) years and that he or she shall have a right to a hearing prior to the
certification. If the alleged narcotic addict appears without counsel, the
court shall advise the person that he or she has the right to the aid of
counsel at every stage of the proceedings, and that if he or she desires the
aid of counsel and is financially unable to obtain counsel, then counsel shall
be assigned. The court shall allow the alleged narcotic addict a reasonable
time to send for counsel and shall adjourn the proceedings for that purpose.
The court shall inform the alleged addict, if the person is being held in
custody, that he or she is entitled to communicate free of charge, by letter or
telephone, in order to obtain counsel and in order to inform a relative or
friend of the proceeding. If the alleged narcotic addict does not desire the
aid of counsel the court must determine that the person waived counsel having
knowledge of the significance of his or her act. If the court is not satisfied
that the alleged narcotic addict knows the significance of his or her act in
waiving counsel, the court shall assign counsel.
(5) (i)(e) (1) If the court, after the appearance of the alleged addict, is satisfied
that there are reasonable grounds to believe that the person is a narcotic addict
it shall issue an order directing the person to appear on a specified date and
place for a medical examination in accordance with § 21-28.2-4. of
this chapter. A copy of this order shall be given to the person and a copy
of the order and of any order or warrant issued in accordance with subdivisions
(b), (c), or (f) (2), (3), or (6) of this section shall be
furnished to the department.
(ii)(2) If the court has reason to believe that the person will fail to appear
for the medical examination, the order shall make provision commanding any
police officer of the state to take the person into custody and deliver him or
her forthwith immediately to the place specified for the medical
examination.
(iii)(3) Any order issued pursuant to this paragraph subdivision
shall direct the person to appear before the court within seven (7) days,
exclusive of Saturdays, Sundays, and holidays, after the person's admission for
the medical examination.
(6)(f) If the alleged narcotic addict fails to appear as directed by an order
pursuant to this section, and the court is satisfied that timely service has
been made or that service cannot be effected with due diligence, it may issue a
warrant directed to any police officer in the state commanding the officer:
(i) to take the alleged narcotic addict into custody, and (ii) to bring such
the alleged addict forthwith immediately to a specified
place for a specific purpose, which shall be the place and purpose specified in
the order. If the warrant commands the officer to bring the alleged addict to
court and the court is not then in session, the alleged addict may be held at a
facility designated by the department or at any other detention facility until
the court is in session. The warrant shall be executed in the same manner and
subject to the same restrictions as provided in subdivision (c) (3)
of this section.
SECTION 63. Sections
21-30-6 and 21-30-7 of the General Laws in Chapter 21-30 entitled "Drugs
and Poisons Generally" are hereby amended to read as follows:
21-30-6. Labeling of poisons - Registration of sales -
Prescriptions. -- No person
shall hereafter sell, either by wholesale or retail, any of the poisons
enumerated in § 21-30-7, without distinctly labeling the bottle, box, vessel,
or paper and wrapper or cover in which the poison is contained with the name of
the article, the word "poison," and the name and place of business of
the seller; and every registered pharmacist selling or dispensing any of these
poisons shall first enter in a book, to be kept for that purpose only, and
subject always to inspection by the board of pharmacy or any officer or agent thereof
of the board or other proper authority, and to be preserved for at least
five (5) years, a record of the sale or dispensing; in accordance
with § 21-30-8 [Repealed.]; provided, that if any of the poisons form a
part of the ingredients of any medicine or medicines compounded in accordance
with the written prescription of a medical practitioner, the medicine need not
be labeled with the word "poison"; but all prescriptions, whether or
not composed in part or in whole of any of these ingredients, shall be
carefully kept by the pharmacist on a file or in a book used for that purpose
only and numbered in the order in which they are received or dispensed, and
every box, bottle, vial, vessel, or packet containing medicines so dispensed
shall be labeled with the name and place of business of the registered
pharmacist so dispensing the medicine, and be numbered with a number
corresponding with that on the original prescription retained by the pharmacist
on the book or file. Such The prescriptions shall be preserved at
least five (5) years and shall be open to the inspection of the writer thereof
of them, and a copy shall be furnished free of expense whenever demanded
by either the writer or the purchaser.
21-30-7. Poisons subject to
labeling and registration. -- The following substances are poisons subject
to labeling as provided in § 21-30-6:
(1)(a) Arsenic and its preparations.
(2)(b) Carbolic acid.
(3)(c) Corrosive sublimate.
(4)(d) Cotton root and its preparations.
(5)(e) Cyanide of potassium.
(6)(f) Ergot and its preparations.
(7)(g) Hydrocyanic acid.
(8)(h) Opium and its preparations, paregoric excepted.
(9)(i) Oxalic acid.
(10)(j) Savin.
(11)(k) Strychnia.
(12)(l) Volatile oil of bitter almonds, of pennyroyal, of savin, and of tansy.
(13)(m) Proprietary or secret medicines recommended, sold or advertised as
emmenagogues and parturients.
SECTION 64. Sections
21-31-3 and 21-31-15 of the General Laws in Chapter 21-15 entitled "Rhode
Island Food, Drugs, and Cosmetics Act" are hereby amended to read as
follows:
21-31-3. Prohibited acts. -- The following acts and the causing thereof of those acts
within the state of Rhode Island are hereby prohibited:
(1)(a) The manufacture, sale, or delivery, or holding or offering for sale of
any food, drug, device, or cosmetic that is adulterated or misbranded.
(2)(b) The adulteration or misbranding of any food, drug, device, or cosmetic.
(3)(c) The receipt in commerce of any food, drug, device, or cosmetic that is
adulterated or misbranded, and the delivery or proferred delivery thereof
of it for pay or otherwise.
(4)(d) The sale, delivery for sale, holding for sale, or offering for sale of
any article in violation of § 21-31-12 or 21-31-16.
(5)(e) The dissemination of any false advertisement.
(6)(f) The refusal to permit entry or inspection, or to permit the taking of a
sample, as authorized by § 21-31-21.
(7)(g) The giving of a guaranty of undertaking which guaranty or undertaking is
false, except by a person who relied on a guaranty or undertaking to the same
effect signed by, and containing the name and address of, the person residing
in the state of Rhode Island from whom he received in good faith the food,
drug, device, or cosmetic.
(8)(h) The removal or disposal of a detained or embargoed article in violation
of § 21-31-6.
(9)(i) The alteration, mutilation, destruction, obliteration, or removal of the
whole or any part of the labeling of, or the doing of any other act with
respect to, a food, drug, device, or cosmetic, if that act is done while the
article is held for sale and results in the article's being adulterated or
misbranded.
(10)(j) Forging, counterfeiting, simulating, or falsely representing, or without
proper authority using, any mark, stamp, tag, label, or other identification
device authorized or required by regulations promulgated under the provisions
of this chapter.
(11)(k) The using, on the labeling of any drug or in any advertisement relating
to the drug, of any representation or suggestion that any application with
respect to the drug is effective under § 21-31-16, or that the drug complies
with the provisions of that section.
(12)(i)(l) (1) No person shall possess The possession of any
habit-forming, toxic, harmful, or new drug subject to § 21-31-15(k)(1) 21-31-15(a)(11)(i)
unless the possession of that drug has been obtained by a valid prescription of
a practitioner licensed by law to administer such those drugs;
provided, that the provisions of this subdivision shall not be applicable to
the delivery of such those drugs to persons included in any of
the classes named below, or to the agents or employees of these persons, for
use in the usual course of their official duties, as the case may be,;
or to the possession of such those drugs by these persons or
their agents or employees for that use: (A) pharmacists; (B)
practitioners; (C) persons who procure such the drugs for
disposition by or under the supervision of pharmacists or practitioners
employed by them or for the purpose of lawful research, teaching, or testing,
and not for resale; (D) hospitals or other institutions which procure such
the drugs for lawful administration by practitioners; (E)
officers or employees of federal, state, or local governments; (F)
manufacturers and wholesalers lawfully engaged in selling such those
drugs to authorized persons; and (G) common carriers and warehousemen
warehouse operators while engaged in lawfully transporting or storing such
the drugs for authorized persons.
(ii)(2) The possession of a drug under subdivision (l)(1) paragraph
(i) of this section subdivision not properly labeled to indicate
that possession is by a valid prescription of a practitioner licensed by law to
administer the drug by any person not exempted under this chapter shall be
prima facie evidence that the possession is unlawful; provided, that the
provisions of this paragraph shall not be applicable where a portion of the
whole amount of a drug lawfully obtained under the provisions of this chapter
not in excess of an amount sufficient to meet the medical requirements of the
patient in any twenty-four (24) consecutive hours, as indicated in the
directions for use by the practitioner prescribing or dispensing the drug, is
possessed in a container to suit the convenience of the patient.
(13)(m) The sale of all unprocessed and/or uncooked fish, shellfish, and
scallops by retail markets and other retailers without a label indicating
whether the fish, shellfish, or scallops have ever been frozen.
(14)(n) The making, issuing, or uttering of any false or forged prescription.
(15)(o) The processing or selling or holding for sale of any "distressed
merchandise" in this state without a permit from the director of health.
(16)(p) The holding, selling, or offering for sale of any food (or drug) which
has been condemned or voluntarily disposed of by action of the director of health.
(17)(q) Use of the term "native" unless used as defined in § 21-31-2.
The retail consumer has a right to know and the retailer shall provide upon
request the origin of nonnative uncooked and/or unprocessed shellfish and/or
scallops.
21-31-15. Misbranded drug
or device. -- (a) A drug or device shall be deemed to be misbranded:
(1)(a) If its labeling is false or misleading in any particular.
(2)(b) If in package form unless it bears a label containing: (i)(1)
the name and place of business of the manufacturer, packer, or distributor; and
(ii)(2) an accurate statement of the quantity of the contents in
terms of weight, measure, or numerical count; provided, that under clause
(2) paragraph (ii) of this subdivision reasonable variations shall
be permitted, and exemptions as to small packages shall be established, by
regulations prescribed by the director of health.
(3)(c) If any word, statement, or other information required by or under
authority of this chapter to appear on the label or labeling is not prominently
placed thereon on it with such conspicuousness (as compared with
other words, statements, designs, or devices in the labeling) and in such terms
as to render it likely to be read and understood by the ordinary individual
under customary conditions of purchase and use.
(4)(d) If it is for use by humans and contains any quantity of the narcotic or
hypnotic substance alpha-eucaine, barbituric acid, betaeucaine, bromal,
cannabis, carbromal, chloral, coca, cocaine, codeine, heroin, marihuana,
morphine, opium, paraldehyde, peyote, or sulphonmethane, or any chemical
derivative of such a substance any of those substances, which
derivative has been by the director of health after investigation found to be,
and by regulations under this chapter designated as, habit forming, unless its
label bears the name and quantity of the proportion of the substance or
derivative and in juxtaposition therewith with it the statement
"Warning - May be habit forming."
(5)(e) If it is a drug and is not designated solely by a name recognized in an
official compendium unless its label bears: (i)(1) the
common or usual name of the drug, if such there be; and (ii)(2)
in case it is fabricated from two or more ingredients, the common or usual name
of each active ingredient, including the kind and quantity or proportion of any
alcohol, and also including, whether active or not, the name and quantity or
proportion of any bromides, ether, chloroform, acetanilid, acetphenetidin,
amidopyrine, anti-pyrine, atropine, hysoeine, hyoscyamine, arsenic, digitalis,
glucosides, mercury, ouabain, strophanthin, strychnine, thyroid, or any
derivative or preparation of any such those substances contained therein
in it; provided, that to the extent that compliance with the requirements
of clause (2) paragraph (ii) of this subdivision is
impracticable, exemptions shall be established by regulations promulgated by
the director of health.
(6)(f) Unless its labeling bears: (i)(1) adequate
directions for use; and (ii)(2) such adequate warnings
against use in those pathological conditions or by children where its use may
be dangerous to health, or against unsafe dosage or methods or duration of
administration or application, in such the manner and form as
that are necessary for the protection of users; provided, that where any
requirement of clause (1) paragraph (i) of this subdivision, as
applied to any drug or device, is not necessary for the protection of the
public health, the director of health shall promulgate regulations exempting
the drug or device from those requirements.
(7)(g) If it purports to be a drug the name of which is recognized in an
official compendium, unless it is packaged and labeled as prescribed therein
in the compendium; provided, that the method of packing may be modified
with the consent of the director of health. Whenever a drug is recognized in
both the United States Pharmacopoeia and the Homeopathic Pharmacopoeia of the
United States, it shall be subject to the requirements of the United States Pharmacopoeia
with respect to packaging and labeling unless it is labeled and offered for
sale as a homeopathic drug, in which case it shall be subject to the provisions
of the Homeopathic Pharmacopoeia of the United States, and not to those of the
United States Pharmacopoeia.
(8)(h) If it has been found by the director of health to be a drug liable to
deterioration, unless it is packaged in such the form and manner,
and its label bears a statement of such the precautions, as
that the director of health shall by regulations require as necessary
for the protection of public health. No such regulation shall be
established for any drug recognized in an official compendium until the
director of health shall have informed the appropriate body charged with the
revision of the compendium of the need for such packaging or labeling
requirements and that body shall have failed within a reasonable time to
prescribe such those requirements.
(9)(i) If: (i)(1) If it is a drug and its container is so
made, formed, or filled as to be misleading; or (ii)(2) if
it is an imitation of another drug; or (iii)(3) if it is offered
for sale under the name of another drug.
(10)(j) If it is dangerous to health when used in the dosage, or with the
frequency or duration prescribed, recommended, or suggested in its labeling.
(11)(i)(k) (1) A drug intended for use by humans which: (A) is a habit forming
drug to which subdivision (d) (a)(4) of this section applies;,
or (B) because of its toxicity or the potential for harmful effect, or
the method of its use, or the collateral measures necessary to its use, is not
safe for use except under the supervision of a practitioner licensed by law to
administer that drug;, or (C) is limited by an effective
application under § 21-31-16 to use under the professional supervision of a
practitioner licensed by law to administer that drug shall be dispensed only:
(I)(1) upon a written prescription of a practitioner licensed by
law to administer the drug, or (II)(2) upon an oral
prescription of the practitioner which is reduced promptly to writing and filed
by the pharmacist, or (III)(3) by refilling any such
written or oral prescription if the refilling is authorized by the prescriber
either in the original prescription or by oral order which is reduced promptly
to writing and filed by the pharmacist. The act of dispensing a drug contrary
to the provisions of this subdivision shall be deemed to be an act which
results in the drug being misbranded while held for sale.
(ii)(2) The director of health may by regulation remove drugs subject to
subdivision (d) (a)(4) of this section and § 21-31-16 from the
requirements of subdivision (k)(1) paragraph (i) of this subdivision
when such those requirements are not necessary for the protection
of the public health.
(iii)(3) A drug which is subject to subdivision (k)(1) paragraph (i) of
this subdivision shall be deemed to be misbranded if at any time prior to
dispensing its label fails to bear the statement "Caution: Federal law
prohibits dispensing without prescription." A drug to which subdivision
(k)(1) paragraph (i) of this subdivision does not apply shall be
deemed to be misbranded if at any time prior to dispensing its label bears the
caution statement quoted in the preceding sentence.
(iv)(4) No prescription for any of the drugs described above in this
subdivision shall be refilled if marked "non-repeat" or
"N.R."
(12)(m) If it is a drug and its packaging or labeling is in violation of an
applicable regulation issued pursuant to § 23-24.1-3 or 23-24.1-4 of the Poison
Prevention Packaging Act.
(b)(1) (l) (1) Any drug dispensed by filling
or refilling a written or oral prescription of a practitioner licensed by law
to prescribe such the drug, and any drug dispensed to an ultimate
user by a practitioner, shall be exempt from the requirements of this section
except subdivisions (a)(1), (9), and (11) of this section, (i), and
(k), and the packaging requirements of subdivisions (g), (h), and (m)
(a)(7), (8), and (12) of this section, if the drug bears a label
containing the name and address of the dispenser, the serial number and date of
the prescription or of its filling, the name of the prescriber, and, if stated
in the prescription, the name of the patient, and the directions for use and
cautionary statements, if any, contained in the prescription. When a
practitioner prescribes a drug by brand name, oral or written, he/she he
or she shall, in each prescription, authorize a less expensive generic
equivalent drug product by signing the prescription. If in the professional judgment
of the prescribing practitioner the brand name is medically necessary, the
practitioner shall write in his/her his or her own handwriting in
a designated box, "Brand name necessary" on the prescription form.
This exemption shall not apply to any drug dispensed in violation of subdivision
(k)(1) paragraph (a)(11)(i) of this section.
(2)(A) When dispensing a generic drug product, the word "INTERCHANGE"
or the letters "IC" must appear on the label followed by the generic
name and manufacturer, and/or distributor, of the chosen product.
(3)(B) The requirements of (A) subdivision (2) of this subsection
only apply to single entity, multiple-source drugs.
(4)(C) When dispensing a single entity, single source drug, the trade name of
the prescribed drug will also appear on the label, and the generic name of the
prescribed drug may also appear on the label.
(5)(D) When dispensing a fixed combination product, the United States
Pharmacopoeia's publication of Pharmacy Equivalent Names (PEN Names) for fixed
combination products is the official list of abbreviations for such that
labeling, and will be the approved abbreviation for identifying the combination
product dispensed. If no PEN name has been officially issued by the USP, the
practitioner or pharmacist will label the medication secundum artem.
(6)(E) Subsections (A) - (D) Subdivisions (2) - (5) of this
subsection apply in all cases of dispensing by practitioners or
pharmacists.
(7)(2) Nothing in this section shall be construed to relieve any person from any
requirement prescribed by or under authority of law with respect to drugs now
included or which may hereafter subsequently be included within
the classifications stated in chapters 28 and 30 of this title.
SECTION 65. Section 21-31.1-5
of the General Laws in Chapter 21-31.1 entitled "Veterinary Drugs" is
hereby amended to read as follows:
21-31.1-5. Requirements for permit. -- Any veterinary drug distributor except licensed veterinarians intending
to operate in the state of Rhode Island after June 2, 1988, shall be
required to have a permit before commencing operations., except any
distributor already operating on June 2, 1988, shall apply for a permit within
90 days after June 2, 1988. Pending receipt of a permit or denial of a
permit under § 21-31.1-6 of this chapter such operations may continue.
SECTION 66. Section
21-33-5 of the General Laws in Chapter 21-33 entitled "Packaged Bakery
Products" is hereby amended to read as follows:
21-33-5. Construction with
other laws. -- Nothing contained in this chapter shall be
construed to authorize any act heretofore otherwise prohibited
under any other chapter provision of the general laws.
SECTION 67. Section 22-3-12 of the General Laws in Chapter 22-3 entitled
"Organization of General Assembly" is hereby amended to read as
follows:
22-3-12. Legislative manual.
-- The secretary of state shall
prepare in each odd-numbered year a legislative manual for the use of the
general assembly, containing the rolls of membership, the committees, the rules
and orders, thereof, and such any other matter as
that the secretary may think proper. The number of manuals to be printed
and bound will be determined by the secretary of state. Ten (10) copies shall
be distributed to each of the senators and representatives of the general
assembly; forty (40) copies shall be placed at the disposal of the governor;
and the remainder shall be placed in the hands of the secretary of state. There
shall be appropriated in each odd numbered year, an amount sufficient to cover
the cost of printing and binding of said the manual. The
secretary of state is hereby authorized to distribute all remaining copies of
the 1989-90 Rhode Island Manual to Rhode Island public schools and public
libraries at no cost.
SECTION
68. Section 22-7-1 of the General Laws in Chapter 22-7 entitled "Joint
Committee on Accounts and Claims" is hereby amended to read as follows:
22-7-1. Permanent committee - Composition.
[Effective until January 7, 2003.] --
The joint committee on accounts and claims, heretofore
previously created under joint rules of the senate and the house of
representatives, shall consist of four (4) members of the senate to be
appointed by the majority leader of the senate and five (5) members of the
house of representatives to be appointed by the speaker, and is hereby
created a as the permanent joint committee on accounts and claims
of the general assembly. The members of this joint committee on accounts and
claims shall serve until their successors shall be duly appointed as provided below
in this chapter and until the successors shall have been duly qualified.
22-7-1. Permanent committee - Composition.
[Effective January 7, 2003.]
--
The joint committee on accounts and claims, heretofore
previously created under joint rules of the senate and the house of
representatives, shall consist of four (4) members of the senate to be
appointed by the president of the senate and five (5) members of the house of
representatives to be appointed by the speaker, and is hereby created
a as the permanent joint committee on accounts and claims of the
general assembly. The members of this joint committee on accounts and claims
shall serve until their successors shall be duly appointed as provided below
in this chapter and until the successors shall have been duly qualified.
SECTION 69. Section
22-7.8-1 of the General Laws in Chapter 22-7.8 entitled "Permanent Joint
Committee on Veterans' Affairs" is hereby amended to read as follows:
22-7.8-1. Permanent committee -
Composition. [Effective until January 7, 2003.] --There is hereby created a permanent
joint committee of the general assembly on veterans' affairs to consist of
fifteen (15) members of the general assembly, eight (8) of whom shall be
from the house of representatives to be appointed by the speaker, not more than
five (5) of whom shall be from the same political party; seven (7) of whom
shall be from the senate to be appointed by the majority leader of the senate,
not more than five (5) of whom shall be from the same political party.
Vacancies shall be filled in like manner as the original appointments. The
members of the joint committee on veterans' affairs shall serve so long as they
shall remain members of the house from which they were appointed and until
their successors are duly appointed and qualified. The initial chairmanship
chairpersonship of the committee shall be filled from among the
members of the house of representatives serving on the committee and thereafter
the chairmanship shall alternate biennially from the senate to the house.
22-7.8-1. Permanent committee -- Composition. [Effective January 7, 2003.] --
There is hereby created a
permanent joint committee of the general assembly on veterans' affairs to
consist of fifteen (15) members of the general assembly, eight (8) of
whom shall be from the house of representatives to be appointed by the speaker,
not more than five (5) of whom shall be from the same political party; seven
(7) of whom shall be from the senate to be appointed by the president of the
senate, not more than five (5) of whom shall be from the same political party.
Vacancies shall be filled in like manner as the original appointments. The
members of the joint committee on veterans' affairs shall serve so long as they
shall remain members of the house from which they were appointed and until
their successors are duly appointed and qualified. The initial chairmanship
chairpersonship of the committee shall be filled from among the
members of the house of representatives serving on the committee and thereafter
the chairmanship shall alternate biennially from the senate to the house.
SECTION
70. Section 22-7.9-1 of the General Laws in Chapter 22-7.9 entitled
"Permanent Joint Committee on Economic Development" is hereby amended
to read as follows:
22-7.9-1. Permanent committee -
Composition. [Effective until January 7, 2003.] -- There is hereby
created a permanent joint committee of the general assembly on economic
development to consist of eleven (11) members of the general assembly, five (5)
of whom shall be from the senate to be appointed by the majority leader of the
senate not more than three (3) of whom shall be from the same political party,
and six (6) of whom shall be from the house of representatives to be appointed
by the speaker of the house of representatives not more than four (4) of whom
shall be from the same political party. The selection of the chairperson,
vice-chairperson, and secretary of the committee shall alternate biennially
between the majority leader of the senate and the speaker of the house as set
forth in this chapter.
22-7.9-1. Permanent
committee - Composition. [Effective January 7, 2003.] -- There is hereby created a permanent joint committee of the general
assembly on economic development to consist of eleven (11) members of the
general assembly, five (5) of whom shall be from the senate to be appointed by
the majority leader president of the senate not more than three
(3) of whom shall be from the same political party, and six (6) of whom shall
be from the house of representatives to be appointed by the speaker of the
house of representatives not more than four (4) of whom shall be from the same
political party. The selection of the chairperson, vice-chairperson, and
secretary of the committee shall alternate biennially between the majority
leader of the senate and the speaker of the house as set forth in this chapter.
SECTION 71. Section 22-7.9-2 of the General Laws in Chapter 22-7.9
entitled "Permanent Joint Committee on Economic Development" is
hereby repealed in its entirety.
22-7.9-2. Selection of
officers. -- The first chairperson and secretary of the
committee shall be selected by the majority leader of the senate. Thereafter
The selection of the chairperson and secretary shall be made by the speaker of
the house and shall alternate biennially between the speaker of the house and
the majority leader of the senate. The first vice-chairperson of the committee
shall be selected by the speaker of the house. Thereafter The selection of the
vice-chairperson shall be made by the majority leader of the senate, and shall
alternate biennially between the majority leader of the senate and the speaker
of the house of representatives.
SECTION 72. Section 22-11-3.1 of the General Laws in Chapter 22-11
entitled "Joint Committee on Legislative Services" is hereby amended
to read as follows:
22-11-3.1. Rules and regulations. -- (a) The joint committee on legislative
services is hereby authorized and empowered to adopt such any
rules and regulations as that are deemed necessary to accomplish
the purposes of this chapter, a copy of which rules and regulations shall be
filed with the secretary of state and available for public inspection; provided,
however, that each permanent and continuing office or agency within the
legislative department, established by statute and to which funds are
specifically appropriated, will maintain and be responsible for exercising its
own internal financial and personnel controls. In the formation of these rules
and regulations, the joint committee shall take into consideration and conform
to, where practicable, existing policies governing financial and personnel
practices within the executive branch of government.
(b) The joint
committee on legislative services is hereby authorized and empowered to
adopt rules and regulations, consistent with the rules of each house of the
general assembly, designed to provide electronic services and products to its
elected members and, incrementally, to make electronic services and products
regarding its proceedings available to the citizens of this state. commencing
with the January Session 1996. The joint committee on legislative services
shall prioritize general assembly proceedings and legislative information to be
made incrementally accessible in a timely manner, including:
(1) A list of all
members of the general assembly with their addresses and telephone numbers and
all committees of the general assembly and their members;
(2) The history and
status of every bill introduced and amended in each current legislative
session;
(3) The current
calendars of the house and the senate and of all legislative committees;
(4) The text of every
bill introduced and to be printed in the current legislative session, including
the amended or substitute form of each bill, and the text of every bill as
enacted;
(5) The Rhode
Island general laws;
(6) The Rhode Island
Constitution; and
(7) The senate and
house journals.;
(c) It shall be solely
and exclusively within the discretion of the joint committee on legislative
services, when providing access, to include and require, in written contracts
for electronic services and products, provisions that:
(1) Protect the
security and integrity of the information system of the general assembly;
(2) Limit any
potential liability of the general assembly in providing public access to
electronic services and products;
(3) Ensure that
access of non-disclosable information is prohibited;
(4) Provide protection
against intentional or accidental disclosure, modification, or destruction of
records.
SECTION 73. Section
22-13-9 of the General Laws in Chapter 22-13 entitled "Auditor
General" is hereby amended to read as follows:
22-13-9. Access to
executive sessions of a public agency - Access to records - Disclosure by the
auditor general. -- (a)
Whenever a public agency goes into executive session, the auditor general or
his or her designated representative shall be permitted to attend the executive
session or if the auditor general or his or her designee is not in attendance
at the executive session, the auditor general or his or her designee, upon
written request, shall be furnished with copies of all data or materials
furnished to the members of the public agency at the executive session. If the
auditor general or his or her designee attends the executive session, the
auditor general shall be furnished the same data in the same form and at the
same time as members of the public agency.
(b) Within
three (3) working days of a written request by the auditor general, the public
agency shall furnish a copy, whether approved by the agency or not, of the
minutes of any meeting, including any executive session of the public agency.
(c) The auditor
general shall have full and unlimited access to any and all records of any
public agency, in whatever form or mode the records may be, unless the auditor
general's access to such the records is specifically prohibited
or limited by federal or state law. In no case shall any confidentiality
provisions of state law be construed to restrict the auditor general's access
to such the records; provided, however, the auditor general's
access to any confidential data shall not in any way change the confidential
nature of the data obtained. Where an audit or investigative finding emanates
from confidential data, specific confidential information will not be made
public. Such The records shall include those in the immediate possession
of a public agency as well as records which the agency itself has a right to.
In the event of a dispute between the agency involved and the auditor general
as to whether or not the data involved are confidential by law, the matter will
be referred to the attorney general for resolution.
(d)(1) If in
the course of an executive session any fact comes to the attention of the
auditor general or his or her designated representative, which in his or her
judgment constitutes an impropriety, irregularity, or illegal transaction, or
points to the onset of an impropriety or illegal transaction, then the auditor
general shall disclose that information to the joint committee on legislative
services, the director of administration, and the chairperson of the public
agency involved. Where the facts or the data upon which the facts are based are
deemed confidential pursuant to the provisions of federal or state law, the
auditor general's access to the information shall not in any way change the
confidential nature of the data obtained.
(2) In the event of a dispute between the agency
involved and the auditor general as to whether or not the data involved are
confidential by law, the matter will be referred to the attorney general for
resolution.
(e) The auditor
general or his or her designated representative shall be immune from any
liability to any party for claims arising out of disclosure authorized by this
section.
(f) For the purposes
of this section, the phrase "public agency" shall include the
following: the Rhode Island industrial building authority, the Rhode Island
recreational building authority, the Rhode Island port authority and
economic development corporation, the Rhode Island industrial facilities
corporation, the Rhode Island public buildings refunding bond
authority, the Rhode Island housing and mortgage finance corporation, the Rhode
Island solid waste management resource recovery corporation, the
Rhode Island public transit authority, the Rhode Island student loan authority,
the Howard development corporation, the water resources board, the Rhode
Island health and educational building corporation, the Rhode Island higher
education assistance authority, the Rhode Island turnpike and bridge authority,
the Blackstone Valley district commission, the Narragansett Bay water
quality management district commission, Rhode Island public
telecommunications authority, the convention center authority, channel 36
foundation, their successors and assigns, and any other body corporate and
politic which has been here before or which is hereinafter subsequently
created or established within this state.
SECTION 74. Sections
22-14-2 and 22-14-11 of the General Laws in Chapter 22-14 entitled
"Legislative Oversight Commission" are hereby amended to read as
follows:
22-14-2. Quorum - Meetings.
-- Six (6) members of the commission shall constitute a quorum for the
transaction of any business. Meetings of the commission may be held at any time
or place upon call of any member, after a reasonable notice by mail or telegraph
to the other members, and shall be held at such the times and
places as in the judgment of the commission will best serve the convenience of
all parties in interest.
22-14-11. Legislative
action. -- From and after May 13, 1977, Whenever the general assembly is about to
create or re-create any statutory entity it should, whenever possible, request
a report from the commission as set forth in § 22-14-7; of this
chapter; however, no such report is required to be received by the
general assembly for any action to be taken, and nothing in this chapter shall
be construed to prohibit the legislature from terminating an entity covered by
these provisions at a date earlier than that provided herein in this
chapter, nor to prohibit the legislature from considering any other
legislation relative to such an that entity.
SECTION 75. Sections 22-14-5.1 and 22-14-9 of the General Laws in Chpater
22-14 entitled "Legislative Oversight Commission" are hereby repealed
in their entirety.
22-14-5.1. Termination
of statutory entity. -- (a) The legislative authority for the
existence of the statutory entity listed below as defined in § 22-14-4 shall
cease as of June 30, 1990:
Litter and recycling advisory council created
by § 37-15-4.
(b) Notwithstanding any other reporting requirements of this chapter, the
auditor general's report shall be submitted on or before September 1, 1989 and
the commission report shall be submitted on or before March 1, 1990.
22-14-9. Reestablishment. -- The life of each entity or statute scheduled for termination under the
provisions of § 22-14-5.1 may be continued or reestablished by action of the
general assembly.
CHAPTER 17
COMMISSION ON
VEHICLE EMISSIONS
22-17-1. Legislative
findings. -- The general assembly hereby finds and
declares that:
(1) Poor air
quality has an adverse effect on the health of all Rhode Island residents,
particularly the elderly and those with respiratory ailments;
(2) Poor air
quality contributes to acid rain problems and has adverse effects on the water
and land as well as doing damage to the food chain and aquatic life;
(3) Poor air
quality exacerbates the deterioration of our buildings, structures, roads,
bridges and parks;
(4) National
legislative efforts are being pursued to strengthen requirements to improve air
quality;
(5) Auto emissions
account for a substantial amount of air pollution problems in the northeastern
part of the country;
(6) Nationally, as
much as thirty percent (30%) of auto emissions systems have been tampered with;
(7) There is a
need to improve Rhode Island's capabilities in complying with more rigorous
auto emissions inspections and standards.
22-17-2. Establishment -
Purpose - Membership. [Effective until January 7, 2003.] -- (a) There is hereby established a commission on vehicle emissions empowered
to study and investigate the adverse effect on air quality of vehicle
emissions. The study and investigation shall include, but not be limited to,
the following:
(1) The state's
current system of testing auto emissions, including the technical and
administrative needs for improving that system;
(2) The quantity
and quality of service stations now performing the testing services;
(3) Enforcement
efforts under the current testing system;
(4) The
feasibility of tying motor vehicle registrations to emissions testing;
(5) Compensation
of service stations performing the testing service;
(6) The
feasibility of adopting and improving upon the emissions checks systems used in
other states and the costs thereof of those systems.
(b) The commission
shall consist of seventeen (17) members all of whom shall be citizens and
residents of the state; four (4) of whom shall be members of the house of
representatives, not more than three (3) from the same political party, to be
appointed by the speaker; three (3) of whom shall be members of the senate, not
more than two (2) from the same political party, to be appointed by the
majority leader; two (2) of whom shall be members of nonprofit organizations
dealing with air pollution and/or health issues, one to be appointed by the
speaker of the house and one to be appointed by the senate majority leader; one
member of a service station organization to be appointed by the speaker of the
house; one member of an automobile dealers organization to be appointed by the
speaker of the house; one person from higher education to be appointed by the
senate majority leader; the director of the department of transportation, or
his or her designee; the director of the department of health or his or her
designee; the director of the department of environmental management, or his or
her designee; the superintendent of state police, or his or her designee; and
the attorney general, or his or her designee.
(c) The
legislative members shall serve so long as they shall remain members of the
house from which they were appointed and until their successors are appointed
and qualified; the directors of the department of transportation, health and
environmental management, the superintendent of state police and the attorney
general shall serve so long as they hold office and until their successors are
appointed and qualified; all other members shall serve at the pleasure of the
appointing authority and until their successors are appointed and qualified.
(d) Any vacancy on
the commission shall be filled by the appointing authority in the same manner
as the original appointment.
(e) The members
shall annually elect, by majority vote, one of their members as chairperson,
one of their members as vice-chairperson and one of their members as secretary.
22-17-2. Establishment - Purpose - Membership.
[Effective January 7, 2003.] --(a) There is hereby established a
commission on vehicle emissions empowered to study and investigate the adverse
effect on air quality of vehicle emissions. The study and investigation shall
include, but not be limited to, the following:
(1) The state's current system of testing auto emissions,
including the technical and administrative needs for improving that system;
(2) The quantity and quality of service stations now
performing the testing services;
(3) Enforcement efforts under the current testing system;
(4) The feasibility of tying motor vehicle registrations
to emissions testing;
(5) Compensation of service stations performing the
testing service;
(6) The feasibility of adopting and improving upon the
emissions checks systems used in other states and the costs thereof of those
systems.
(b) The commission shall consist of seventeen (17) members
all of whom shall be citizens and residents of the state; four (4) of whom
shall be members of the house of representatives, not more than three (3) from
the same political party, to be appointed by the speaker; three (3) of whom
shall be members of the senate, not more than two (2) from the same political
party, to be appointed by the president of the senate; two (2) of whom shall be
members of nonprofit organizations dealing with air pollution and/or health
issues, one to be appointed by the speaker of the house and one to be appointed
by the president of the senate; one member of a service station organization to
be appointed by the speaker of the house; one member of an automobile dealers
organization to be appointed by the speaker of the house; one person from
higher education to be appointed by the president of the senate; the director
of the department of transportation, or his or her designee; the director of
the department of health or his or her designee; the director of the department
of environmental management, or his or her designee; the superintendent of state
police, or his or her designee; and the attorney general, or his or her
designee.
(c) The legislative members shall serve so long as they
shall remain members of the house from which they were appointed and until
their successors are appointed and qualified; the directors of the department
of transportation, health and environmental management, the superintendent of
state police and the attorney general shall serve so long as they hold office
and until their successors are appointed and qualified; all other members shall
serve at the pleasure of the appointing authority and until their successors
are appointed and qualified.
(d) Any vacancy on the commission shall be filled by the
appointing authority in the same manner as the original appointment.
(e) The members shall annually elect, by majority vote,
one of their members as chairperson, one of their members as vice-chairperson
and one of their members as secretary.
22-17-3. Technical
assistance. -- The commission on vehicle emissions shall,
with the approval of the chairperson of the joint committee on legislative
services, contract for those technical services it shall require to effectuate
its purpose which are otherwise unavailable to the commission.
All departments and agencies of the state
shall furnish such any advice and information, documentary and
otherwise, to said the commission and its agents as that is
deemed necessary or desirable by the commission to facilitate the purposes of
this chapter.
22-17-4. Reports and recommendations. -- The commission on vehicle emission shall from
time to time and at least annually report to the general assembly and the
governor on its findings and the result of its studies, and make such any
recommendations to the general assembly and propose such any legislation
or initiate such any studies as that it shall deem advisable. The
first such report shall be made prior to January 1, 1991. The commission shall
deliver its final report and shall expire on January 1, 1995.
22-17-5. Place of
meeting - Quorum. -- The joint committee on legislative services
shall provide adequate space in the state house for the use of the commission
on vehicle emissions; provided, however, that the commission on vehicle
emissions may conduct hearings and hold meetings elsewhere when doing so will
better serve its purpose. A majority in number of the commission on vehicle
emissions shall be necessary to constitute a quorum for the transaction of
business.
SECTION 77. Section 27-34.1-11 of the General Laws in Chapter 27-34.1
entitled "Rhode Island Life and Health Insurance Guaranty Association
Act" is hereby amended to read as follows:
27-34.1-11. Plan of
operation. -- (a) The
association shall submit to the commissioner a plan of operation and any
amendments thereto to the plan necessary or suitable to assure
the fair, reasonable, and equitable administration of the association. The plan
of operation and any amendments thereto to it shall become
effective upon approval in writing by the commissioner.
(b) If the
association fails to submit a suitable plan of operation within one hundred
and eighty (180) days following July 1, 1985, or if at any time thereafter
the association fails to submit suitable amendments to the plan, the
commissioner shall, after notice and hearing, adopt and promulgate the
reasonable rules that are necessary or advisable to effectuate the provisions
of this chapter. Those rules shall continue in force until modified by the
commissioner or superseded by a plan submitted by the association and approved
by the commissioner.
(c) All member
insurers shall comply with the plan of operation.
(d) The plan of
operation shall, in addition to requirements enumerated elsewhere in this
chapter:
(1) Establish
procedures for handling the assets of the association;
(2) Establish the
amount and method of reimbursing members of the board of directors under §
27-34.1-8;
(3) Establish regular
places and times for meetings of the board of directors;
(4) Establish
procedures for records to be kept of all financial transactions of the
association and its agents and board of directors;
(5) Establish the
procedures whereby by which selections for the board of directors
will be made and submitted to the commissoner commissioner;
(6) Establish any
additional procedures for assessments under § 27-34.1-10; and
(7) Contain
additional provisions necessary or proper for the execution of the powers and
duties of the association.
(e) The plan of
operation may provide that any or all powers and duties of the association,
except those under § 27-34.1-10, are delegated to a corporation, association,
or other organization which performs or will perform functions similar to those
of the association, or its equivalent, in two (2) or more states. That a
corporation, association, or organization shall be reimbursed for any payments
made on behalf of the association and shall be paid for its performance of any
function of the association. A delegation under this subsection shall take
effect only with the approval of both the board of directors and the
commissioner, and may be made only to a corporation, association, or
organization which extends protection not substantially less favorable and
effective than that provided by this chapter.
SECTION 78. Section
27-34.2-2 of the General Laws in Chapter 27-34.2 entitled "Long Term Care
Insurance" is hereby amended to read as follows:
27-34.2-2. Scope.
-- Long term care insurance is
deemed to be accident and health insurance and is classified as such for the
purposes of chapter 34.1 of this title, the Rhode Island Life and Health
Insurance Guaranty Association Act. The requirements of this chapter apply to
policies delivered or issued for delivery in this state, except as provided in
§ 27-34.2-5, on or after June 2, 1988. This chapter is not intended to
supercede the obligations of entities subject to this chapter to comply with
the substance of other applicable insurance laws insofar as they do not
conflict with this chapter. Except to the extent expressly provided in this
chapter, nothing in any other chapter of this title, or chapter 62 of title 42,
regulating the form, content, or provisions of accident and health insurance
policies, health benefit plans, and Medicare supplement insurance policies, or
the filing and approval of those policies or plans including premium rates,
applies to long term care insurance policies written under and subject to the
provisions of this chapter.
SECTION 79. Sections
27-34.3-5 and 27-34.3-12 of the General Laws in Chapter 27-34.3 entitled
"Rhode Island Life and Health Insurance Guaranty Assocation Act" are
hereby amended to read as follows:
27-34.3-5.
Definitions. -- As used in this
chapter:
(1)
"Account" means either of the two accounts created under § 27-34.3-6.
(2)
"Association" means the Rhode Island life and health insurance
guaranty association created under § 27-34.3-6.
(3)
"Commissioner" means the commissioner of insurance within the
department of business regulation of this state.
(4) "Contractual
obligation" means any obligation under a policy or contract or certificate
under a group policy or contract, or portion thereof of a group
policy or contract for which coverage is provided under § 27-34.3-3.
(5) "Covered
policy" means any policy or contract within the scope of this chapter
under § 27-34.3-3.
(6) "Impaired insurer" means a
member insurer which, after January 1, 1996, is not an insolvent
insurer, and:
(i) Is deemed by the
commissioner to be potentially unable to fulfill its contractual obligations;
or
(ii) Is placed under
an order of rehabilitation or conservation by a court of competent
jurisdiction.
(7) "Insolvent
insurer" means a member insurer which after the effective date of this
chapter, is placed under an order of liquidation by a court of competent
jurisdiction with a finding of insolvency.
(8) "Member
insurer" means any insurer licensed or which holds a certificate of
authority to transact in this state any kind of insurance for which coverage is
provided under § 27-34.3-3, and includes any insurer whose license or certificate
of authority in this state may have been suspended, revoked, not renewed or
voluntarily withdrawn, but does not include:
(i) A non-profit
hospital or medical service organization;
(ii) A health
maintenance organization;
(iii) A fraternal benefit
society;
(iv) A mandatory
state pooling plan;
(v) A mutual
assessment company or any entity that operates on an assessment basis;
(vi) An insurance
exchange; or
(vii) Any entity
similar to any of the above.
(9) "Moody's
corporate bond yield average" means the monthly average corporates as
published by Moody's Investors Service, Inc., or any successor thereto to
it.
(10)
"Person" means any individual, corporation, partnership, association
or voluntary organization.
(11)
"Premiums" means amounts received on covered policies or contracts
less premiums, considerations and deposits returned thereon on the
policies or contracts, and less dividends and experience credits thereon
on them. "Premiums" does not include any amounts received for any
policies or contracts or for the portions of any policies or contracts for
which coverage is not provided under § 27-34.3-3(b) except that assessible
assessable premium shall not be reduced on account of §
27-34.3-3(b)(2)(iii) relating to interest limitations and § 27-34.3-3(c)(2)
relating to limitations with respect to any one individual, any one participant
and any one contract holder; provided that "premiums" shall not
include any premiums in excess of five million dollars ($5,000,000) on any
unallocated annuity contract not issued under a governmental retirement plan
established under § 401, 403(b) or 457 of the United States Internal Revenue
Code, 26 U.S.C. § 401, 403(b) or 457.
(12)
"Resident" means any person who resides in this state at the time a
member insurer is determined to be an impaired or insolvent insurer and to whom
a contractual obligation is owed. A person may be a resident of only one state,
which in the case of a person other than a natural person shall be its
principal place of business.
(13) "Supplemental
contract" means any agreement entered into for the distribution of policy
or contract proceeds.
(14)
"Unallocated annuity contract" means any annuity contract or group
annuity certificate which is not issued to and owned by an individual, except
to the extent of any annuity benefits guaranteed to an individual by an insurer
under the contract or certificate.
27-34.3-12.
Prevention of insolvencies. -- To
aid in the detection and prevention of insurer insolvencies or impairments:,
(1) The commissioner
may, in his or her discretion:,
(i) Notify the
commissioners of all the other states, territories of the United States and the
District of Columbia when the commissioner takes any of the following actions
against a member insurer:
(A) Revocation of
license;
(B) Suspension of
license; or
(C) Makes any formal
order that such the company restrict its premium writing, obtain
additional contributions to surplus, withdraw from the state, reinsure all or
any part of its business, or increase capital, surplus, or any other account
for the security of policyholders or creditors.
(ii) Report to the
board of directors when the commissioner has taken any of the actions set forth
in paragraph (1) (i) of this subdivision or has received a report
from any other commissioner indicating that any such action has been taken in
another state. The report to the board of directors shall contain all
significant details of the action taken or the report received from another
commissioner.
(iii) Report to the
board of directors when the commissioner has reasonable cause to believe from
any examination, whether completed or in process, of any member company that
the company may be an impaired or insolvent insurer.
(iv) Furnish to the
board of directors the NAIC insurance regulatory information system (IRIS)
ratios and listings of companies not included in the ratios developed by the
National Association of Insurance Commissioners, and the board may use the
information contained therein in the ratios and listings in carrying
out its duties and responsibilities under this section. The report and the
information contained therein in it shall be kept confidential by
the board of directors until such time as made public by the commissioner or
other lawful authority.
(2) The commissioner
may seek the advice and recommendations of the board of directors concerning
any matter affecting his duties and responsibilities regarding the financial
condition of member insurers and companies seeking admission to transact
insurance business in this state.
(3) The board of
directors may, upon majority vote, make reports and recommendations to the
commissioner upon any matter germane to the solvency, liquidation,
rehabilitation or conservation of any member insurer or germane to the solvency
of any company seeking to do an insurance business in this state. The reports
and recommendations shall not be considered public documents.
(4) It shall be the
duty of the board of directors, upon majority vote, to notify the commissioner
of any information indicating any member insurer may be an impaired or
insolvent insurer.
(5) The board of
directors may, upon majority vote, request that the commissioner order an
examination of any member insurer which the board in good faith believes may be
an impaired or insolvent insurer. Within thirty (30) days of the receipt of the
request, the commissioner shall begin an examination. The examination may be
conducted as a national association of insurance commissioners examination or
may be conducted by persons the commissioner designates. The cost of the
examination shall be paid by the association and the examination report shall
be treated as are other examination reports.
The commissioner shall notify the board of
directors when the examination is completed. The request for an examination
shall be kept on file by the commissioner, but it shall not be open to public
inspection prior to the release of the examination report to the public.
(6) The board of
directors may, upon majority vote, make recommendations to the commissioner for
the detection and prevention of insurer insolvencies.
(7) The board of
directors shall, at the conclusion of any insurer insolvency in which the
association was obligated to pay covered claims, prepare a report to the commissioner
containing such information as it may have in its possession bearing on the
history and causes of the insolvency. The board shall cooperate with the boards
of directors of guaranty associations in other states in preparing a report on
the history and causes of insolvency of a particular insurer, and may adopt by
reference any report prepared by other associations.
SECTION 80. Section
27-35-3 of the General Laws in Chapter 27-35 entitled "Insurance Holding
Company Systems" is hereby amended to read as follows:
27-35-3.
Registration of insurers. -- (a) Registration. Every insurer that
is authorized to do business in this state and that is a member of an insurance
holding company system shall annually register with the commissioner, except a
foreign insurer subject to disclosure requirements and standards adopted by
statute or regulation in the jurisdiction of its domicile which are
substantially similar to those contained in § 27-35-3, this
section and § 27-35-4(a), (b), (f) and(g)., 27-35-4(b), 27-35-4(f)
and 27-35-4(g). Any insurer that is subject to registration under this
section shall register within sixty (60) days after July 16, 1971 or
fifteen (15) days after it becomes subject to registration, whichever is
later, unless the commissioner for good cause shown extends the time for
registration, and then within that extended time. The commissioner may require
any authorized insurer which is a member of a holding company system which is
not subject to registration under this section to furnish a copy of the
registration statement or other information filed by the insurance company with
the insurance regulatory authority of domiciliary jurisdiction.
(b) Information
and form required. Every insurer subject to registration shall file a
registration statement on a form provided by the commissioner, which shall
contain current information about:
(1) The capital
structure, general financial condition, ownership, and management of the
insurer and any person controlling the insurer;
(2) The identity of
every member of the insurance holding company system;
(3) The following
agreements in force, relationships subsisting, and transactions currently
outstanding between the insurer and its affiliates:
(i) Loans, other
investments or purchases, and sales and exchanges of securities of the
affiliates by the insurer or of the insurer by its affiliates;
(ii) Purchases,
sales, or exchanges of assets;
(iii) Transactions
not in the ordinary course of business;
(iv) Guarantees or
undertakings for the benefit of an affiliate which result in an actual
contingent exposure of the insurer's assets to liability, other than insurance
contracts entered into in the ordinary course of the insurer's business;
(v) All management
service contracts and all cost sharing arrangements; and
(vi) Reinsurance
agreements;
(vii) Dividends and
other distributions to shareholder;
(viii) Consolidated
tax allocation agreements; and
(3.1) Any pledge of the insurer's stock,
including stock of any subsidiary or controlling affiliate, for a loan made to
any member of the insurance holding company system; and
(4) Other matters
concerning transactions between registered insurers and any affiliates as may
be included from time to time in any registration forms adopted or approved by
the commissioner.
(c) Materiality.
No information need be disclosed on the registration statement filed pursuant
to subsection (b) of this section if that information is not material
for the purposes of this section. Unless the commissioner by rule, regulation,
or order provides otherwise, sales, purchases, exchanges, loans, or extensions
of credit or investments involving one-half of one percent (.5%) or less of an
insurer's admitted assets as of the thirty-first day of December next preceding
shall not be deemed material for purposes of this section.
(d) Amendments to
registration statements. Each registered insurer shall keep current the
information required to be disclosed in its registration statement by reporting
all material changes or additions on amendment forms provided by the
commissioner within fifteen (15) days after the end of the month in which it
learns of each change or addition; provided, however, that subject to §
27-35-4(c), each registered insurer shall so report all dividends and other
distributions to shareholders within two (2) business days following the
declaration thereof of the dividend or other distribution.
(e) Termination of
registration. The commissioner shall terminate the registration of any
insurer that demonstrates that it no longer is a member of an insurance holding
company system.
(f) Consolidated
filing. The commissioner may require or allow two (2) or more affiliated
insurers subject to registration hereunder under this chapter to
file a consolidated registration statement or consolidated reports amending
their consolidated registration statement or their individual registration
statements.
(g) Alternative
registration. The commissioner may allow an insurer that is authorized to
do business in this state and which is part of an insurance holding company
system to register on behalf of any affiliated insurer which is required to
register under subsection (a) and to file all information and material required
to be filed under this section.
(h) Exemptions.
The provisions of this section shall not apply to any insurer, information, or
transaction if and to the extent that the commissioner by rule, regulation, or
order shall exempt from the provisions of this section.
(i) Disclaimer.
Any person may file with commissioner a disclaimer of affiliation with any
authorized insurer or the disclaimer may be filed by the insurer or any member
of an insurance holding company system. The disclaimer shall fully disclose all
material relationships and basis for affiliation between the person and the
insurer as well as the basis for disclaiming the affiliation. After a
disclaimer has been filed, the insurer shall be relieved of any duty to
register or report under this section which may arise out of the insurer's
relationship with the person unless and until the commissioner disallows the
disclaimer. The commissioner shall disallow the disclaimer only after
furnishing all parties in interest with notice and opportunity to be heard and
after making specific findings of fact to support the disallowance.
(j) Violations.
The failure to file a registration statement or any amendment thereto to
it required by this section within the time specified for the filing shall
be a violation of this section.
(k) Summary of registration
statement. All registration statements shall contain a summary outlining
all items in the current registration statement representing changes from the
prior registration statement.
(l) Information of
insurers. Any person within an insurance holding company system subject to
registration shall be required to provide complete and accurate information to
an insurer, where the information is reasonably necessary to enable the insurer
to comply with the provisions of this chapter.
SECTION 81.
Section 27-37-1 of the General Laws in Chapter 27-37 entitled
"Cancellation of Group Insurance" is hereby amended to read as
follows:
27-37-1. Notice of
cancellation. -- No policy of
group insurance hereafter issued in this state shall be cancelled by the
insurer unless written notice of cancellation be mailed to the group contract
holder by certified or registered mail at least thirty (30) days prior to the
cancellation date in order for the cancellation to be effective.
SECTION 82. Sections
27-34.2-11 and 27-34.2-17 of the General Laws in Chapter 27-34.2 entitled
"Long Term Care Insurance" are hereby repealed in their entirety.
27-34.2-11.
Previously approved policies. -- All long term care insurance policies previously approved by the
department of business regulation, that are offered or delivered after June 2,
1988, shall be brought into compliance with this chapter on or before January
1, 1991.
27-34.2-17. Long term care insurance advisory
panel. [Effective until January 7, 2003.] --
(a) There is hereby established an advisory
panel to the department of business regulation for the purpose of examining
minimum criteria for Medicaid qualifying long term care insurance policies. The
panel shall consist of the following:
(1) The director
of the department of health and human services or the director's designee;
(2) A
representative of the insurance industry to be appointed by the governor;
(3) The director
of the department of business regulation or the director's designee;
(4) An attorney
whose practice concentrates in elder law, to be appointed by the speaker of the
house;
(5) A member of
the American Association of Retired Persons to be appointed by the speaker of
the house;
(6) A
representative of the Rhode Island Medical Society;
(7) The director
of the department of elderly affairs or the director's designee;
(8)
A representative of a visiting nurse association;
(9) Three (3) members of the house of
representatives, no more than two (2) from the majority party; and
(10) Two (2)
members of the senate to be appointed by the majority leader, one from each
party.
(b) The advisory
panel shall report to the director of the department of business regulation on
or before December 31, 1994 regarding recommended basic requirements for
long term care insurance policies.
27-34.2-17. Long term care insurance advisory
panel. [Effective January 7, 2003.] --
(a) There is hereby established an advisory
panel to the department of business regulation for the purpose of examining minimum
criteria for Medicaid qualifying long term care insurance policies. The panel
shall consist of the following:
(1) The director
of the department of health and human services or the director's designee;
(2) A
representative of the insurance industry to be appointed by the governor;
(3) The director
of the department of business regulation or the director's designee;
(4) An attorney
whose practice concentrates in elder law, to be appointed by the speaker of the
house;
(5) A member of
the American Association of Retired Persons to be appointed by the speaker of
the house;
(6) A
representative of the Rhode Island Medical Society;
(7) The director
of the department of elderly affairs or the director's designee;
(8) A representative
of a visiting nurse association;
(9) Three (3)
members of the house of representatives, no more than two (2) from the majority
party; and
(10) Two (2)
members of the senate to be appointed by the president of the senate, one from
each party.
(b) The advisory
panel shall report to the director of the department of business regulation on
or before December 31, 1994 regarding recommended basic requirements for
long term care insurance policies.
SECTION 83. Section
27-38.2-1 of the General Laws in Chapter 27-38 entitled "Insurance
Coverage for Mental Illness and Substance Abuse" is hereby amended to read
as follows:
27-38.2-1. Mental illness coverage. -- Every health care insurer that delivers or
issues for delivery or renews in this state on or after January 1, 2002,
a contract, plan, or policy except contracts providing supplemental coverage to
Medicare or other governmental programs, shall provide coverage for the medical
treatment of mental illness and substance abuse under the same terms and
conditions as such that coverage is provided for other illnesses
and diseases. Insurance coverage offered pursuant to this statute must include
the same durational limits, amount limits, deductibles, and co-insurance
factors for mental illness as for other illnesses and diseases.
SECTION 84.
Section 27-40-2 of the General Laws in Chapter 27-40 entitled "Insurance
Premium Finance Agreements" is hereby amended to read as follows:
27-40-2.
Definitions. -- As used in this
chapter:
(1)
"Director" means the director of business regulation.
(2) "Insurance
premium finance agreement"; hereinafter referred to in this
chapter as "agreement",; means an agreement by
which an insured, or prospective insured, promises to pay to an insurance
premium finance company the amount advanced or to be advanced, under the
agreement to an insurer or to an insurance producer, in payment of a premium or
premiums on an insurance contract or contracts, together with interest and a
service charge, as authorized and limited by this chapter;
(3) "Insurance
premium finance company", hereinafter referred to in this
chapter as "company", means a person engaged in the business of
entering into insurance premium finance agreements, as hereinafter defined, or
acquiring insurance premium finance agreements from other insurance premium
finance companies;
(4)
"Licensee" means an insurance premium finance company holding a
license issued and existing by virtue of and pursuant to chapter 25.3 14.1
of title 19; and [similar provisions now under 19-14.1]
(5)
"Person" means an individual, partnership, association, business
corporation, nonprofit corporation, common law trust, joint stock company; or
any other group of individuals howsoever lawfully organized.
SECTION 85. Sections 27-41-1,
27-41-2, 27-41-9, 27-41-13, 27-41-19, 27-41-26.1, 27-41-20.1, 27-41-33,
27-41-34, 27-41-36, 27-41-38, 27-41-39, 27-41-40, 27-41-41, 27-41-43,
27-41-43.1, 27-41-44, 27-41-49, 27-41-49.1, 27-41-50, 27-41-53.1, 27-41-54,
27-41-59, and 27-41-64 of the General Laws in Chapter 27-41 entitled
"Health Maintenance Organizations" are hereby amended to read as
follows:
27-41-1. Short
title. -- This chapter may be
cited as the "Health Maintenance Organization Act." of
1983".
27-41-2.
Definitions. -- (a) "Covered
health services" means the services that a health maintenance organization
contracts with enrollees and enrolled groups to provide or otherwise make
available to an enrolled participant.
(b)
"Director" means the director of the department of business
regulation or his or her duly appointed agents.
(c)
"Employee" means any person who has entered into the employment of or
works under a contract of service or apprenticeship with any employer. It shall
not include a person who has been employed for less than thirty (30) days by
his or her employer, nor shall it include a person who works less than an
average of thirty (30) hours per week. For the purposes of this chapter, the
term "employee" shall mean a person employed by an "employer"
as defined in subsection (d) of this section. Except as otherwise
provided herein in this chapter the terms "employee"
and "employer" are to be defined according to the rules and
regulations of the department of labor and training.
(d)
"Employer" means any person, partnership, association, trust, estate,
or corporation, whether foreign or domestic, or the legal representative,
trustee in bankruptcy, receiver, or trustee thereof of a receiver,
or the legal representative of a deceased person, including the state of Rhode
Island and each city and town therein in the state, which has in
its employ one or more individuals during any calendar year. after
May 17, 1983. For the purposes of this section, the term
"employer" refers only to an employer with persons employed within the
state of Rhode Island.
(e)
"Enrollee" means an individual who has been enrolled in a health
maintenance organization.
(f) "Evidence of
coverage" means any certificate, agreement, or contract issued to an
enrollee setting out the coverage to which the enrollee is entitled.
(g) "Health care
services" means any services included in the furnishing to any individual
of medical, podiatric, or dental care, or hospitalization, or incident to the
furnishing of that care or hospitalization, as well as the furnishing to any
person of any and all other services for the purpose of preventing,
alleviating, curing, or healing human illness, injury, or physical disability.
(h) "Health
maintenance organization" means a single public or private organization
which:
(1) Provides or
otherwise makes available to enrolled participants health care services,
including at least the following basic health care services: usual physician
services, hospitalization, laboratory, x-ray, emergency, and preventive
services, and out of area coverage, and the services of licensed midwives;
(2) Is compensated,
except for copayments, for the provision of the basic health care services
listed in subsection (h) subdivision (1) of this section subsection
to enrolled participants on a predetermined periodic rate basis; and
(3) (i) Provides
physicians' services primarily:
(A) Directly through
physicians who are either employees or partners of the organization; or
(B) Through
arrangements with individual physicians or one or more groups of physicians
organized on a group practice or individual practice basis;
(ii) "Health
maintenance organization" does not include prepaid plans offered by
entities regulated under chapter 1, 2, 19, or 20 of this title which do not
meet the criteria above and do not purport to be health maintenance
organizations;
(4) Provides the
services of licensed midwives primarily:
(i) Directly through
licensed midwives who are either employees or partners of the organization; or
(ii) Through
arrangements with individual licensed midwives or one or more groups of
licensed midwives organized on a group practice or individual practice basis.
(i) "Licensed
midwife" means any midwife licensed pursuant to § 23-13-9.
(j) (o) "Material modification"
means only systemic changes to the information filed under § 27-41-3.
(k) (p) "Net worth", for the
purposes of this chapter, means the excess of total admitted assets over total
liabilities.
(l) (j) "Physician" shall
include podiatrist as defined in chapter 29 of title 5.
(m) (k) "Private organization"
means a legal corporation with a policy making and governing body.
(n) (l) "Provider" means any
physician, hospital, licensed midwife, or other person which who is
licensed or otherwise authorized in this state to furnish health care services.
(o) (m) "Public organization"
means an instrumentality of government.
(p) (q) "Risk based capital
("RBC") instructions" means the risk based capital report including
risk based capital instructions adopted by the National Association of
Insurance Commissioners ("NAIC"), as these risk based capital
instructions are amended by the NAIC from time to time in accordance with the
procedures adopted by the NAIC.
(q) (r) "Total adjusted
capital" means the sum of:
(1) A health maintenance organization's
statutory capital and surplus (i.e. net worth) as determined in accordance with
the statutory accounting applicable to the annual financial statements required
to be filed under § 27-41-9; and
(2) Any other items, if any, that the RBC
instructions provide.
(r) (n) "Uncovered
expenditures" means the costs of health care services that are covered by
a health maintenance organization, but that are not guaranteed, insured, or
assumed by a person or organization other than the health maintenance
organization. Expenditures to a provider that agrees not to bill enrollees
under any circumstances are excluded from this definition.
27-41-9. Required
reports. -- (a) Every health
maintenance organization shall annually, on or before the first day of March,
file a report verified by at least two (2) principal officers with the
director, with a copy to the director of health, covering the preceding
calendar year.
(b) The annual report
shall be on forms prescribed by the director in consultation with the director
of health and shall include:
(1) A financial
statement of the organization, including its balance sheet and receipts and
disbursements for the preceding year certified by an independent public
accountant;
(2) Any material
changes in the information submitted pursuant to § 27-41-3(c);
(3) The number of
persons enrolled during the year, the number of enrollees as of the end of the
year, and the number of enrollments terminated during the year;
(4) A summary of
information compiled pursuant to § 27-41-4(b)(2)(iv) 27-41-4(a)(2)(iv)
in the form as required by the director of health; and
(5) Any other
information relating to the performance of the health maintenance organization
as is necessary to enable the director to carry out his or her duties under
this chapter.
(c) In addition to
the reports required in subsection (a), every health maintenance organization
shall on a form prescribed by the director report on or before September 30 of
each year a filing that shall set forth the amount of uncovered and covered
expenses that are payable and are more than ninety (90) days past due. That
report shall cover the period January 1 through July 31 of that year. Further,
at the time of the filing of the annual report as required in subsection (a), a
report shall be filed setting forth the amount of uncovered and covered
expenses that are payable and are more than ninety (90) days past due; that
report shall cover the preceding period of August 1 through December 31 of that
year.
(d) Every health
maintenance organization shall also file quarterly statements with the
insurance commissioner, due on or before forty-five (45) days after the quarter
ending in accordance with the National Association of Insurance Commissioners'
guidelines and procedures, and shall be available for inspection by the public.
(e) The insurance
commissioner shall also require compliance with chapters 12 and 12.1 of title
27.
27-41-13.
Protection against insolvency. -- (a) Unless otherwise provided, each health maintenance organization shall
deposit with the general treasurer of the state of Rhode Island securities
having a market value at all times of at least the amount set forth in this
section, which are to be held for the benefit and protection of all the
enrollees of the health maintenance organization.
(b)(1) The amount for
an organization that is applying for initial licensure shall be the greater of:
(i) Five percent (5%)
of its estimated expenditures for health care services for its first year of
operation;
(ii) Twice its
estimated average monthly uncovered expenditures for its first year of
operation; or
(iii) One hundred
thousand dollars ($100,000);
(2) At the beginning
of each succeeding year, unless not applicable, that organization shall deposit
with the general treasurer securities in an amount equal to four percent (4%)
of its estimated annual uncovered expenditures for that year.
(c)(1) An
organization that is licensed as a health maintenance organization on May 17,
1983, shall make a deposit equal to the larger of:
(i) One percent (1%)
of the preceding twelve (12) months of uncovered expenditures; or
(ii) One hundred
thousand dollars ($100,000), within six (6) months of May 17, 1983;
(2) On the first day
of the organization's first fiscal year beginning six (6) months or more after
May 17, 1983, the organization shall make an additional deposit equal to two
percent (2%) of its estimated annual uncovered expenditures. In the second fiscal
year, if applicable, the additional deposit shall be equal to three percent
(3%) of its estimated annual uncovered expenditures for that year, and in the
third fiscal year and subsequent years, if applicable, the additional deposit
shall be equal to four percent (4%) of its estimated annual uncovered
expenditures for each year. Each year's estimate, after the first year of
operation, shall reasonably reflect the prior year's operating experience and
delivery arrangements.
(d) The director may waive
any of the deposit requirements as set forth in subsections (b) and (c),
of this section whenever satisfied that the organization has sufficient
net worth and an adequate history of generating net income to assure its
financial viability for the next year, or its performance and obligations are
guaranteed by an organization with sufficient net worth and an adequate history
of generating net income, or the assets of the organization or its contracts
with insurers, hospital or medical service corporations, governments, or other
organizations are sufficient to reasonably assure the performance of its
obligations.
(e)(1) When an
organization has achieved a net worth not including land, buildings, and
equipment of at least one million dollars ($1,000,000) or has achieved a net
worth including plan related land, buildings, and equipment of at least five
million dollars ($5,000,000), the annual deposit requirement shall not apply;
(2) The annual
deposit requirement shall not apply to an organization if the total amount of
the deposit of securities is equal to twelve percent (12%) of the HMO's
estimated annual uncovered expenditures for the next calendar year, or the
capital and surplus requirements for the formation and admittance of an
accident and health insurer in this state, whichever is less;
(3) If the
organization has a guaranteeing organization which has been in operation for at
least five (5) years and has a net worth not including land, buildings, and
equipment of at least one million dollars ($1,000,000) or which has been in
operation for at least ten (10) years and has a net worth including plan
related land, buildings, and equipment of at least five million dollars
($5,000,000), the annual deposit requirement shall not apply.;
provided, however, that However, if the guaranteeing organization is
sponsoring more than the one organization, the net worth requirement shall be
increased by a multiple equal to the number of organizations. This requirement
to maintain a deposit in excess of the deposit required of an accident and
health insurer shall not apply during any time that the guaranteeing
organization maintains a net worth at least equal to the capital and surplus
requirements for an accident and health insurer.
(f) All income from
the deposit with the general treasurer shall belong to the depositing
organization and shall be paid to it as it becomes available. A health
maintenance organization that has made a securities deposit with the general
treasurer may, at its option, withdraw the securities deposit or any part thereof
of the deposit, first having deposited, in lieu thereof of it,
a deposit of securities of equal amount and value to that withdrawn.
(g) In any year in
which an annual deposit is not required of an organization, at its request, the
director shall lower its required deposit by one hundred thousand dollars
($100,000) for each two hundred fifty thousand dollars ($250,000) of net worth
not including land, buildings, and equipment, if it, or a guaranteeing
organization on its behalf and not for another organization, has in excess of
one million dollars ($1,000,000) or in excess of five million dollars
($5,000,000) of net worth, including only health maintenance organization
related land, buildings, and equipment contributing to the delivery of health
care services; provided, however, that the reductions never bring the required
deposit below one hundred thousand dollars ($100,000). If the net worth of an
organization or guaranteeing organization no longer supports a reduction of its
required deposit, the organization shall immediately redeposit one hundred
thousand dollars ($100,000) for each two hundred fifty thousand dollars
($250,000) of reduction, provided that its total deposit does not exceed the
maximum required under this section.
(h)(1) Before issuing
any certificate of authority, the director shall require that the health
maintenance organization have an initial net worth of one million five hundred
thousand dollars ($1,500,000) and shall thereafter maintain the minimum net worth
required under paragraph (2) of this subsection.
(2) Except as
provided in paragraphs subdivisions (3) and (4) of this
subsection, every health maintenance organization must:
(i) (a) Maintain a minimum net worth equal to the greater of:
(A) (1) One million dollars ($1,000,000);
or
(B) (2) Two percent (2%) of annual
premium revenues as reported on the most recent annual financial statement
filed with the director on the first one hundred fifty million dollars
($150,000,000) of premium and one percent (1%) of annual premium of the premium
in excess of one hundred fifty million dollars ($150,000,000).
(ii) (b) Maintain total adjusted capital
at the amount of authorized control level risk based capital as determined
under the risk based capital formula in accordance with the managed care
organizations risk based capital instructions adopted by the National
Association of Insurance Commissioners.
(3) A health
maintenance organization licensed before July 1, 1999 must maintain a minimum
net worth and total adjusted capital of:
(A) Twenty-five
percent (25%) of the amount required by paragraph (2) of this subsection by
January 1, 2000;
(B) Fifty percent
(50%) of the amount required by paragraph (2) of this subsection by January 1,
2001;
(i) (C) Seventy-five percent (75%) of the
amount required by paragraph subdivision (2) of this subsection
by January 1, 2002;
(ii) (D) One hundred percent (100%) of the
amount required by paragraph subdivision (2) of this subsection
by January 1, 2003.
(4) The director may
waive any of the net worth and/or total adjusted capital requirements as set
forth in this subsection (h) whenever satisfied that the health
maintenance organization has sufficient net worth and/or total adjusted capital
and an adequate history of generating net income to assure its financial
viability for the next year, or its performance and obligations are guaranteed
by an organization with sufficient net worth and an adequate history of
generating net income, or the assets of the health maintenance organization or
its contracts with insurers, hospital or medical service corporations,
governments, or other organizations are sufficient to reasonably assure the
performance of its obligations; provided, however, that in no event shall the
net worth requirement be less than one hundred thousand dollars ($100,000).
(5)(i) (A)
In determining net worth, no debt is considered fully subordinated unless the
subordination clause is in a form acceptable to the director. Any interest
obligation relating to the repayment of any subordinated debt must be similarly
subordinated.
(ii) (B) The interest expenses relating to
the repayment of any fully subordinated debt are considered covered expenses.
(iii) (C) Any debt incurred by a note meeting
the requirements of this section, and otherwise acceptable to the director, are
not considered a liability and are recorded as equity.
(i) Each health
maintenance organization shall maintain written contracts or other arrangements
satisfactory to the director with providers of services, insurers, hospital or
medical service corporations, governments, or other organizations to satisfy
the director that in the event of insolvency enrollees will not be liable for
charges for covered health services received before the time of insolvency and
those contracts and other arrangements shall assure that:
(1) Benefits,
including professional services, for all enrollees who are confined at the time
of insolvency in hospitals, skilled nursing facilities, intermediate care
facilities, or home health agencies receiving services covered by the health
maintenance organization shall continue to be paid without interruption until
the earlier of discharge or ninety (90) days, or in the alternative, for
federally qualified health maintenance organizations which are licensed
pursuant to this chapter, confinement coverage shall be provided which meets
federal standards for federally qualified health maintenance organization
plans;
(2) All enrollees
will be covered without interruption by the lesser of their current coverage or
a fully qualified program as defined in § 42-62-10, or its equivalent as
approved by the director, for a period of thirty (30) days following the
insolvency, unless enrollees are afforded an opportunity to enroll in another
insurance plan as defined in subsection (i) subdivision (3) of
this subsection without waiting periods or exclusions or limitations based
on health status; and
(3) Enrollees and
enrolled groups will be afforded the opportunity within thirty (30) days to
purchase other health insurance equivalent to the lesser of their current
coverage or a fully qualified program as defined in § 42-62-10 on a group basis
if they are enrolled in the health maintenance organization on a group basis and
on a direct pay basis otherwise, with full credit for all prepaid premiums
without waiting periods or exclusions or limitations based on health status. In
the event that a contract providing for coverage commensurate with the lesser
of current coverage or a fully qualified program as defined in § 42-62-10 is
not reasonably available, the health maintenance organization shall maintain
the best insolvency conversion insurance reasonably available in the market
place. The director, upon application of the health maintenance organization,
must before approving any alternate coverage be satisfied that that alternate
coverage reasonably protects enrollees and is in the public interest. The term
"insurance" as used in this section means an insurance policy or a contract
of insurance with an entity acceptable to the director other than the health
maintenance organization, which other entity is available to cover the
enrollees of the health maintenance organization in the event of its
insolvency. If insolvency conversion protection commensurate with the lesser of
current coverage or a fully qualified program as defined in § 42-62-10 becomes
available, the lesser shall be obtained by the health maintenance organization
within a reasonable time.
(j) All insurance contracts,
and other arrangements to satisfy the conditions herein, shall be evidenced by
copies of the insurance contracts and arrangements and by a certificate from
the insurers and other parties to the contracts or arrangements submitted to
the director, which certificate must contain provisions requiring the insurer,
and all other parties to the contracts, to notify the director and the health
maintenance organization ninety (90) days in advance of any revocation or
cancellation or of any significant change in status giving the reason thereof
of the action. All insurance contracts shall remain in full force and
effect for at least ninety (90) days following written notice by registered
mail of cancellation by either party to the director. Each health maintenance
organization must present the director with evidence of premium payment in a
form and manner acceptable to the director for each premium payment for any
insurance arrangement certifying that all premiums are prepaid ninety (90) days
in advance and subsequently the health maintenance organization must follow up
within a time period acceptable to the director with other evidence of premium
payment satisfactory to the director.
27-41-19. Rules and
regulations. -- No later
than January 1, 1996, The
director of business regulation and the director of health shall, after notice
and hearing, promulgate reasonable rules and regulations, as that
are necessary or proper to carry out the provisions of this chapter. Those
rules and regulations shall be subject to review in accordance with the
provisions of chapter 35 of title 42.
27-41-26.1. Patient
responsibility - Administrative requirements. -- For health benefit contracts issued, renewed,
or delivered on or after January 1, 2002, in this state the following
shall apply:
(1) The amount of
copayments for physician office visits and hospital emergency room visits shall
be printed on the subscriber identification cards issued to insureds.
(2) A schedule of all
applicable copayments, by product or by group, in paper or electronic format,
or both, shall be published, updated, and distributed to participating
providers.
(3) On an annual
basis, notification shall be provided to subscribers regarding their
responsibility for copayments and deductibles.
27-41-30.1.
Post-partum hospital stays. -- (a) Every individual
or group hospital or medical services plan contract delivered, issued for
delivery, or renewed in this state on or after September 1, 1996, shall
provide coverage for a forty-eight (48) hour time period in a hospital after a
vaginal birth, and ninety-six (96) hours after a Cesarean section for a mother
and her newly born child. Any decision to shorten these minimum coverages shall
be made by the attending health care provider in consultation with the mother.
The decision shall be made in accordance with the standards for guidelines for
perinatal care published by the American College of Obstetrics and Gynecology
and the American Academy of Pediatrics. The standards shall be relative to
early discharge, defined as less than forty-eight (48) hours for a vaginal
delivery and ninety-six (96) for a Cesarean delivery. In the case of early
discharge, post-delivery care shall include home visits, parent education,
assistance and training in breast or bottle feeding and the performance of any
necessary and appropriate clinical tests or any other tests or services
consistent with the above guidelines.
(b) For the purposes of this section,
"attending health care provider" shall include includes
the attending obstetrician, pediatrician, family practitioner, general
practitioner or certified nurse midwife attending the mother and newly born
child.
(c) Any member who is aggrieved by a denial of
benefits to be provided under this section may appeal the denial in accordance
with regulations of the department of health, which have been promulgated
pursuant to chapter 17.12 of title 23. No policy or plan covered under this
chapter shall terminate the services, reduce capitation payment, or otherwise
penalize an attending physician or other health care provider who orders care
consistent with the provisions of this section.
27-41-33. Coverage
for infertility. -- (a) Any
health maintenance organization service contract plan or policy here and
after delivered, issued for delivery, or renewed in this state, on
or after December 1, 1989, except a contract providing supplemental
coverage to Medicare or other governmental programs, which includes pregnancy
related benefits, shall provide coverage for medically necessary expenses
of diagnosis and treatment of infertility. To the extent that a health
maintenance organization provides reimbursement for a test or procedure used in
the diagnosis or treatment of conditions other than infertility, those tests
and procedures shall not be excluded from reimbursement when provided attendant
to the diagnosis and treatment of infertility; provided, that subscriber
copayment, not to exceed twenty percent (20%), may be required for those
programs and/or procedures the sole purpose of which is the treatment of
infertility.
(b) For the purpose
of this section, "infertility" shall mean means the
condition of an otherwise healthy married individual who is unable to conceive
or produce conception during a period of one year.
27-41-34. Health
maintenance organizations' assessment. -- (a) Notwithstanding any other provisions of law, each domestic HMO shall
be charged an assessment to partially support the activities of the division of
insurance in the department of business regulation.
(b) Commencing in
fiscal year 1990-1991 Each domestic HMO assessment shall be determined in
accordance with the following ratio: (1) (i) by dividing the HMO
total direct premiums by the total direct premiums, including annuities, less
policyholder dividends of all domestic insurance companies plus the total
direct premiums of domestic companies licensed or regulated pursuant to
chapters 19, 20, 20.1, 20.2, 20.3, 25, and 41 of this title, and chapter 62 of
title 42; (2) (ii) and then by multiplying the resulting ratio
times two hundred thousand dollars ($200,000).
(c) The minimum
assessment charged shall be the greater of the sum determined by subsection (b)
of this section or one thousand dollars ($1,000).
27-41-36. Services
of midwives. -- Every health
maintenance organization plan contract delivered, issued for delivery, or
renewed in this state on or after January 1, 1991, shall provide
coverage for the services of licensed midwives in accordance with each health
maintenance organization's respective principles and mechanisms of
reimbursement, credentialing, and contracting if the services are within the
licensed midwives' area of professional competence as defined by regulations
promulgated pursuant to § 23-13-9 and are currently reimbursed when rendered by
any other licensed health care provider. No health maintenance organization may
require supervision, signature, or referral by any other health care provider
as a condition of reimbursement to a licensed midwife whose services are
provided pursuant to § 27-41-5(a)(6)(ii), except when the requirements are also
applicable to other categories of health care providers. Further, no health
maintenance organization or patient may be required to pay for duplicate
services actually rendered by both a licensed midwife and any other health care
provider. Direct payment for licensed midwives will be contingent upon services
rendered in a licensed health care facility and for services rendered in
accordance with rules and regulations promulgated by the department of health;
provided, however, that this provision shall not prohibit payment for services
pursuant to § 42-62-26 or for other services reimbursed by third party payors.
27-41-38. Drug
coverage. -- No health maintenance
organization that provides coverage for prescription drugs under a group plan
master contract delivered, issued for delivery, or renewed in this state on
or after July 1, 1991, may require any person covered under the contract to
obtain prescription drugs from a mail order pharmacy as a condition of
obtaining benefits for the drugs.
27-41-39. Certified
registered nurse practitioners and psychiatric and mental health nurse clinical
specialists. -- (a) Every individual or group policy or contract
delivered, issued for delivery, or renewed by a health maintenance organization
in this state on or after January 1, 1992, will shall provide
coverage for the services of certified registered nurse practitioners and
psychiatric and mental health nurse clinical specialists to subscribers, if
those services are within the certified registered nurse practitioner's or
psychiatric and mental health nurse clinical specialist's area of professional
competence as established by education and certification, and are currently
reimbursed when rendered by any other health care provider. No health
maintenance organization may be required to pay for duplicative services
actually rendered by a certified nurse practitioner and any other health care
provider.
(b) Nothing in this chapter shall preclude the
conducting of managed care reviews and medical necessity reviews by an insurer
or hospital or medical service corporation or health maintenance organization.
27-41-40. Certified
counselors in mental health and therapists in marriage and family practice. -- (a) Every individual or group
policy or contract delivered, issued for delivery or renewed by a health
maintenance organization in this state on or after January 1, 1994, will
shall, when deemed medically necessary by the health maintenance
organization in accordance with its standard medical management protocols as
approved by the health department and within the contractual benefit limits,
provide coverage for the services of counselors in mental health licensed pursuant
to § 5-63.2-9 and therapists in marriage and family practice licensed pursuant
to § 5-63.2-10.
(b) It shall remain within the sole discretion
of the health maintenance organization as to which certified counselors in
mental health and certified therapists in marriage and family practice it shall
contract with. Nothing contained herein in this section shall
require the health maintenance organization to provide coverage other than in
conjunction with a related medical illness.
27-41-41. New
cancer therapies - Under investigation. -- Every individual or group hospital or medical expense insurance policy or
individual or group hospital or medical service plan contract delivered, issued
for delivery or renewed in this state on or after January 1, 1995, shall
provide coverage for new cancer therapies still under investigation as outlined
in this chapter.
27-41-43.
Mastectomy treatment. -- (a)
Every individual or group health insurance contract, plan, or policy delivered,
issued for delivery or renewed in this state on or after January 1, 1997,
which provides medical coverage that includes coverage for physician services
in a physician's office, and every policy which provides major medical
or similar comprehensive-type coverage, shall include coverage for
prosthetic devices and or reconstructive surgery to restore and achieve
symmetry for the patient incident to a mastectomy. Coverage for prosthetic
devices and reconstructive surgery shall be subject to the deductible and coinsurance
conditions applied to the mastectomy and all other terms and conditions
applicable to other benefits. Any reconstructive surgery under this section
must be performed within eighteen (18) months of the original mastectomy. As
used in this section, "mastectomy" means the removal of all or part
of the breast to treat a breast cancer, tumor, or mass.
(b) Any provision in
any contract issued, amended, delivered or renewed in this state on or after
January 1, 1997, which is in conflict with this section shall be of no
force or effect.
(c) As used in this
section, "prosthetic devices" means and includes the provision of
initial and subsequent prosthetic devices pursuant to an order of the patient's
physician or surgeon.
(d)(1) Nothing in
this section shall be construed to require an individual or group policy to
cover the surgical procedure known as mastectomy or to prevent application of
deductible or copayment provisions contained in the policy or plan, nor shall
this section be construed to require that coverage under an individual or group
policy be extended to any other procedures.
(2) Nothing in this
section shall be construed to authorize an insured or plan member to receive
the coverage required by this section if that coverage is furnished by a
nonparticipating provider, unless the insured or plan member is referred to
that provider by a participating physician, nurse practitioner, or certified
nurse midwife providing care.
(3) Nothing in this
section shall preclude the conducting of managed care reviews and medical
necessity reviews, by an insurer, hospital or medical service corporation or
health maintenance organization.
27-41-43.1.
Insurance coverage for mastectomy hospital stays. -- (a) The Rhode Island general assembly
recognizes that breast cancer is a unique illness with both a physical and
emotional impact on patients. Every individual or group hospital or medical
services plan contract delivered, issued for delivery, or renewed in this state
on or after September 1, 1997, shall provide coverage for a minimum
forty-eight (48) hour time period in a hospital after the surgical procedures
known as a mastectomy, and a minimum twenty-four (24) hours after an axilary
node dissection. Any decision to shorten these minimum coverages shall be made
by the attending physician in consultation with and upon agreement by the
patient. If the patient participates in an early discharge, defined as
in-patient care following a mastectomy that is less than forty-eight (48) hours
and in-patient care following an axilary node dissection that is less than
twenty-four (24) hours, coverage shall include a minimum of one home visit
conducted by a physician or registered nurse.
(b) Any subscriber
who is aggrieved by a denial of benefits to be provided under this section may
appeal the denial in accordance with regulations of the department of health,
which have been promulgated pursuant to chapter 17.12 of title 23. No policy or
plan covered under this chapter shall terminate the services, reduce capitation
payment, or otherwise penalize an attending physician or other health care
provider who orders care consistent with the provisions of this section.
(c) Notice.
All plans subject to this section shall provide notice to each enrollee:
(1) In the next mass
mailing made by the plan to the employee; or
(2) As part of any
informational packet sent to the enrollee.
27-41-44. Diabetes
treatment. -- (a) Every individual or group health insurance
contract, plan, or policy delivered, issued for delivery or renewed in this
state on or after January 1, 1997, which provides medical coverage that
includes coverage for physician services in a physician's office and every
policy which provides major medical or similar comprehensive-type coverage
shall include coverage for the following equipment and supplies for the
treatment of insulin treated diabetes, non-insulin treated diabetes, and
gestational diabetes when medically appropriate and prescribed by a physician
blood glucose monitors and blood glucose monitors for the legally blind, test
strips for glucose monitors and visual reading, insulin, injection aids,
cartridges for the legally blind, syringes, insulin pumps and appurtenances thereto
to them, insulin infusion devices, oral agents for controlling blood
sugar and therapeutic/molded shoes for the prevention of amputation. Upon the
approval of new or improved diabetes equipment and supplies by the Food and
Drug Administration, all policies governed by this chapter shall guarantee
coverage of this new diabetes equipment and supplies when medically appropriate
and prescribed by a physician. These policies shall also include coverage, when
medically necessary, for diabetes self-management education to ensure that
persons with diabetes are instructed in the self-management and treatment of
their diabetes, including information on the nutritional management of
diabetes. This coverage for self-management education and education relating to
medical nutrition therapy shall be limited to medically necessary visits upon
the diagnosis of diabetes, where a physician diagnoses a significant change in
the patient's symptoms or conditions which necessitate changes in a patient's
self-management, or where reeducation or refresher training is necessary. This
education, when medically necessary and prescribed by a physician, may be
provided only by the physician or, upon his/her referral to an appropriately
licensed and certified health care provider and may be conducted in group
settings. Coverage for self-management education and education relating to
medical nutrition therapy shall also include home visits when medically
necessary.
(b) Benefit plans offered by a health
maintenance organization may impose copayment and/or deductibles for the
benefits mandated by this chapter; however. However, in no
instance shall the copayment or deductible amount be greater than the copayment
or deductible amount imposed for other supplies, equipment, or physician office
visits. Benefits for services under this chapter shall be reimbursed in
accordance with the respective principles and mechanisms of reimbursement for
each insurer, hospital, or medical service corporation, or health maintenance
organization.
27-41-49. Third
party reimbursement for services of certain health care workers. --
(a) Every individual or group health insurance contract, plan or policy
delivered, issued or renewed by an insurer, health maintenance organization,
nonprofit or for profit health service corporation on or after January 1,
1998, which provides benefits to individual subscribers and members within
the state, or to all group members having a principal place of employment
within the state, shall provide benefits for services rendered by a certified
registered nurse anesthetist designated as a certified registered nurse anesthetist
by the board of nurse registration and nursing education; provided, however,
that the following conditions are met:
(1) The certified
registered nurse anesthetist provides certain health care services under the
supervision of anesthesiologists, licensed physicians or licensed dentists in
accordance with § 5-34.2-2(c), which requires substantial specialized
knowledge, judgment and skill related to the administration of anesthesia,
including pre-operative and post-operative assessment of patients; administering
anesthetics; monitoring patients during anesthesia; management of fluids in
intravenous therapy and management of respiratory care; and
(2) The policy or
contract currently provides benefits for identical services rendered by a
provider of health care licensed by the state; and
(3) The certified
registered nurse anesthetist is not a salaried employee of the licensed
hospital or facility for which the health maintenance organization has an
alternative contractual relationship to fund the services of a certified
registered nurse anesthetist.
(b) It shall remain within the sole discretion
of the health maintenance organization as to which certified registered nurse
anesthetists it shall contract with. Reimbursement shall be provided according
to the respective principles and policies of the health maintenance
organization; provided, however, that no health maintenance organization may be
required to pay for duplicative services actually rendered by a certified
registered nurse anesthetist and any other health care provider. Nothing
contained herein in this section shall preclude the health
maintenance organization from conducting managed care, medical necessity or utilizaton
utilization review.
27-41-49.1.
Third party reimbursement for services of registered nurse first assistants. --
(a) Every individual or group health insurance
contract, plan or policy delivered, issued or renewed by an insurer, health
maintenance organization, nonprofit or for profit health service corporation on
or after January 1, 2000, which provides benefits to individual subscribers
and members within the state, or to all group members having a principal place
of employment within the state, shall provide benefits for services rendered by
a registered nurse first assistant designed as such;, provided,
however, that the following conditions are met:
(1) The registered
nurse first assistant provides certain health care services under the
supervision of a licensed physician; is currently licensed as a registered
nurse in Rhode Island; has successfully completed a course in preparing the
registered nurse as a first assistant in accordance with the Association of
Operating Room Nurses core curriculum guide for the registered nurse first assistant
and includes a minimum of one academic year in a college or university with
didactic instruction and clinical internship programs; and is certified in
perioperative nursing by the Certification Board of Perioperative Nursing
(minimum of two years perioperative experience);
(2) The policy or
contract, currently provides benefits for identical services rendered by a
provider of health care licensed by the state; and
(3) The registered nurse
first assistant is not a salaried employee of the licensed hospital or facility
for which the health maintenance organization has an alternative contractual
relationship to fund the services of a registered nurse first assistant.
(b) It remains within the sole discretion of the
health maintenance organization as to which registered nurse first assistant it
contracts with. Reimbursement provided according to the respective principles
and policies of the health maintenance organization; provided, however, that no
health maintenance organization is required to provide direct reimbursement, or
pay for duplicative services actually rendered by a registered nurse first
assistant and any other health care provider. Nothing contained in this section
precludes the health maintenance organization from conducting managed care,
medical necessity or utilization review.
27-41-50. Human
leukocyte antigen testing. -- Every
individual or group hospital or medical services plan contract delivered or
renewed in this state on or after March 19, 1998 shall include coverage
of the cost for human leukocyte antigen testing, also referred to as
histocompatibility locus antigen testing, for A, B and DR antigens for
utilization in bone marrow transplantation. The testing must be performed in a
facility which is accredited by the American Association of Blood Banks or its
successors, and is licensed under the Clinical Laboratory Improvement Act, 42
U.S.C. § 263a, as it may be from time to time amended. At the time of the
testing, the person being tested must complete and sign an informed consent
form which also authorizes the results of the test to be used for participation
in the National Marrow Donor Program. The group hospital or medical services
plan contract may limit each subscriber to one of these testings per lifetime.
27-41-53.1. Genetic
information. -- (a) Except as
provided in chapter 37.3 of title 5, insurance administrators, health plans and
providers shall be prohibited from releasing genetic information without prior
written authorization of the individual. Written authorization shall be
required for each disclosure and include to whom the disclosure is being made.
An exception shall exist for those participating in research settings governed
by the federal policy for the protection of human research subjects (also known
as "The Common Rule"). Tests conducted purely for research are
excluded from the definition, as are tests for somatic (as opposed to
heritable) mutations, and testing for forensic purposes.
(b) No individual or
group health insurance contract, plan, or policy delivered, issued for
delivery, or renewed in this state on or after January 1, 2002, which
provides medical coverage that includes coverage for physician services in a
physician's office, and every policy which provides major medical or
similar comprehensive-type coverage excluding disability income, long term care
and insurance supplemental policies which only provide coverage for specified
diseases or other supplemental policies, shall:
(1) Use genetic
information or request for genetic information or the results of genetic
information or other genetic information to reject, deny, limit, cancel, refuse
to renew, increase the rates of, affect the terms or conditions of, or
otherwise affect a group or an individual's health insurance policy, contract,
or plan;
(2) Request or
require genetic information for the purpose of determining whether or not to
issue or renew an individual's health benefits coverage, to set
reimbursement/co-pay levels or determine covered benefits and services;
(3) Release the
results of genetic information without the prior written authorization of the
individual from whom the information was obtained, except in a format whereby
by which individual identifiers are removed, encrypted, or encoded so
that the identity of the individual is not disclosed. A recipient of
information pursuant to this section may use or disclose the information solely
to carry out the purpose for which the information was disclosed. Authorization
shall be required for each re-disclosure. An exception shall exist for
participation in research settings governed by the federal policy for the
protection of human research subjects (also known as "The Common
Rule");
(4) Request or
require information as to whether an individual has genetic information, or
participated in genetic information of any kind, whether for clinical or
research purposes.
(c) For the purposes
of this section, "genetic information" is information about genes,
gene product, or inherited characteristics that may derive from the individual
or a family member.
27-41-54.
Disassociation prohibited. --
Notwithstanding any provision of the general or public laws to the contrary, no
individual or group health insurance contract, plan, or policy delivered,
issued for delivery, or renewed in this state on or after July 23, 1998,
which provides medical coverage for physician services in a physician's office,
and no policy which provides major medical or similar comprehensive-type
coverage for specified diseases or other supplemental polices, shall
prohibit a medical provider from ceasing an association with and participation
in one health maintenance organization and associating and participating with
another health maintenance organization doing business in this state.
27-41-59. F.D.A.
approved prescription contraceptive drugs and devices. -- (a) Every individual or group health
insurance contract, plan, or policy that provides prescription coverage and is
delivered, issued for delivery, or renewed in this state on or after January
1, 2001, shall provide coverage for F.D.A. approved contraceptive drugs and
devices requiring a prescription. Provided, however, that nothing in this
subsection shall be deemed to mandate or require coverage for the prescription
drug RU 486.
(b) Notwithstanding
any other provision of this section, any health maintenance corporation may
issue to a religious employer an individual or group health insurance contract,
plan, or policy that excludes coverage for prescription contraceptive methods
which are contrary to the religious employer's bona fide religious tenets.
(c) As used in this
section, "religious employer" means an employer that is a
"church or a qualified church-controlled organization" as defined in
26 U.S.C. § 3121.
(d) Every religious
employer that invokes the exemption provided under this section shall provide
written notice to prospective enrollees prior to enrollment with the plan,
listing the contraceptive health care services the employer refuses to cover
for religious reasons.
27-41-64. Prompt
processing of claims. -- (a) A
health care entity or health plan operating in the state shall pay all complete
claims for covered health care services submitted to the health care entity or
health plan by a health care provider or by a policyholder within forty (40)
calendar days following the date of receipt of a complete written claim or
within thirty (30) calendar days following the date of receipt of a complete
electronic claim. Each health plan shall establish a written standard defining
what constitutes a complete claim and shall distribute this standard to all
participating providers.
(b) If the health
care entity or health plan denies or pends a claim, the health care entity or
health plan shall have thirty (30) calendar days from receipt of the claim to
notify in writing the health care provider or policyholder of any and all
reasons for denying or pending the claim and what, if any, additional
information is required to process the claim. No health care entity or health
plan may limit the time period in which additional information may be submitted
to complete a claim.
(c) Any claim that is
resubmitted by a health care provider or policyholder shall be treated by the
health care entity or health plan pursuant to the provisions of subsection (a)
of this section.
(d) A health care
entity or health plan which fails to reimburse the health care provider or
policyholder after receipt by the health care entity or health plan of a
complete claim within the required timeframes shall pay to the health care
provider or the policyholder who submitted the claim, in addition to any
reimbursement for health care services provided, interest which shall accrue at
the rate of twelve percent (12%) per annum commencing on the thirty-first
(31st) day after receipt of a complete electronic claim or on the forty-first
(41st) day after receipt of a complete written claim, and ending on the date
the payment is issued to the health care provider or the policyholder.
(e) Exceptions to the
requirements of this section are as follows:
(1) No health care
entity or health plan operating in the state shall be in violation of this
section for a claim submitted by a health care provider or policyholder if:
(i) Failure to comply
is caused by a directive from a court or federal or state agency;
(ii) The health care
entity or health plan is in liquidation or rehabilitation or is operating in
compliance with a court-ordered plan of rehabilitation; or
(iii) The health care
entity or health plan's compliance is rendered impossible due to matters beyond
its control which are not caused by it.
(2) No health care
entity or health plan operating in the state shall be in violation of this
section for any claim: (i) initially submitted more than ninety (90) days after
the service is rendered, or (ii) resubmitted more than ninety (90) days after
the date the health care provider received the notice provided for in §
27-18-61(b); provided, however, this exception shall not apply in the event
compliance is rendered impossible due to matters beyond the control of the
health care provider and were not caused by such the health care
provider.
(3) No health care
entity or health plan operating in the state shall be in violation of this section
while the claim is pending due to a fraud investigation by a state or federal
agency.
(4) No health care
entity or health plan operating in the state shall be obligated under this
section to pay interest to any health care provider or policyholder for any
claim if the director of the department of business regulation finds that such
the entity or plan is in substantial compliance with this section. A
health care entity or health plan seeking such a that finding
from the director shall submit such any documentation as that
the director shall require. A health care entity or health plan which is found
to be in substantial compliance with this section shall thereafter
submit such any documentation as the the director
may require on an annual basis for the director to assess ongoing compliance
with this section.
(5) A health care
entity or health plan may petition the director for a waiver of the provision
of this section for a period not to exceed ninety (90) days in the event the
health care entity or health plan is converting or substantially modifying its
claims processing systems.
(f) For purposes of
this section, the following definitions shall apply:
(1) "Claim"
means: (i) a bill or invoice for covered services; (ii) a line item of service;
or (iii) all services for one patient or subscriber within a bill or invoice.
(2) "Date of
receipt" means the date the health care entity or health plan receives the
claim whether via electronic submission or as a paper claim.
(3) "Health care
entity" means a licensed insurance company or nonprofit hospital or
medical or dental service corporation or plan or health maintenance
organization, or a contractor as described in § 23-17.13-2(2), that
operates a health plan.
(4) "Health care
provider" means an individual clinician, either in practice independently
or in a group, who provides health care services, and otherwise referred to as
a non-institutional provider.
(5) "Health care
services" include, but are not limited to, medical, mental health,
substance abuse, dental and any other services covered under the terms of the
specific health plan.
(6) "Health
plan" means a plan operated by a health care entity that provides for the
delivery of health care services to persons enrolled in such the
plans through:
(i) Arrangements with
selected providers to furnish health care services; and/or
(ii) Financial
incentive for persons enrolled in the plan to use the participating providers
and procedures provided for by the health plan.
(7)
"Policyholder" means a person covered under a health plan or a
representative designated by such that person.
(8) "Substantial
compliance" means that the health care entity or health plan is processing
and paying ninety-five percent (95%) or more of all claims within the time
frame provided for in § 27-18-61(a) and (b).
(g) Any provision in
a contract between a health care entity or a health plan and a health care
provider which is inconsistent with this section shall be void and of no force
and effect.
SECTION 86. Section
27-41-55 of the General Laws in Chapter 27-41 entitled "Health Maintenance
Organizations" is hereby repealed in its entirety.
27-41-55.
Conditions of coverage. - As provided in § 27-41-41, coverage is extended to new cancer therapies still
under investigation when the following circumstances are present:
(a)
Treatment is being provided pursuant to a phase II, III or IV clinical trial
which has been approved by the National Institutes of Health (NIH) in
cooperation with the National Cancer Institute (NCI), community clinical
oncology programs; the Food and Drug Administration in the form of an
investigational new drug (IND) exemption; the Department of Veterans' Affairs;
or a qualified nongovernmental research entity as identified in the guidelines
for NCI cancer center support grants;
(b) The proposed
therapy has been reviewed and approved by a qualified institutional review
board (IRB);
(c) The facility
and personnel providing the treatment are capable of doing so by virtue of
their experience, training, and volume of patients treated to maintain
expertise;
(d) The patients
receiving the investigational treatment meet all protocol requirements;
(e) There are no
clearly superior, noninvestigational alternatives to the protocol treatment;
(f) The available
clinical or preclinical data provide a reasonable expectation that the protocol
treatment will be at least as efficacious as the noninvestigational
alternative; and
(g) The
coverage of new cancer therapy treatment provided pursuant to a phase II
clinical trial is not required for only the portion of that treatment as is
provided as part of the phase II clinical trial and is otherwise funded by a
national agency, such as the National Cancer Institute, the Veteran's
Administration, the Department of Defense, or funded by commercial
organizations such as the biotechnical and/or pharmaceutical industry or
manufacturers of medical devices. Any portions of a phase II trial which are
customarily funded by government, biotechnical and/or pharmaceutical and/or
medical device industry sources in Rhode Island or in other states shall
continue to be funded in Rhode Island and coverage pursuant to this section
supplements, does not supplant, customary funding.
SECTION 87.
Section 27-43-2 of the General Laws in Chapter 27-43 entitled "Captive
Insurance Companies" is hereby amended to read as follows:
27-43-2. Incorporation of captive insurance
companies in this state. -- (a) A subsidiary captive insurance company
shall be incorporated as a stock insurance company with its capital divided
into shares and held by the stockholders.
(b) An association
captive insurance company or an industrial insured captive insurance company
may be:
(1) Incorporated as a
stock insurance company with its capital divided into shares and held by the
stockholders; or
(2) Incorporated as a
mutual insurance company without capital stock, the governing body of which is
elected by the member organizations of its association; or
(3) Organized as a reciprocal
insurer in accordance with chapter 17 of this title.
(c) A captive
insurance company which is formed as a corporation shall have not less than
three (3) incorporators of whom not less than two (2) shall be residents of
this state.
(d) (1) In the case
of a captive insurance company formed as a corporation, before the articles of
association are transmitted to the secretary of state, the incorporators shall
petition the commissioner to issue a certificate setting forth his or her
finding that the establishment and maintenance of the proposed corporation will
promote the general good of the state. In arriving at the finding, the
commissioner shall consider:
(i) (A) The character, reputation,
financial responsibility, insurance experience, and business qualifications of
the incorporators and the proposed officers and directors;
(ii) (B) The sources and availability of
its capital; and
(iii) (C) Other financial and business
matters that the commissioner deems advisable.
(2) In the case of a
captive insurance company formed as a reciprocal insurer, the organizers shall
petition the commissioner to issue a certificate setting forth the
commissioner's finding that the establishment and maintenance of the proposed
association will promote the general good of the state. In arriving at such
a that finding the commissioner shall consider:
(i) The character,
reputation, financial responsibility, insurance experience, and business
qualifications of the organizers and the attorney in fact;
(ii) The sources and
availability of its capital; and
(iii) Other financial
and business matters that the commissioner shall deem advisable.
(e) The articles of
association, the certificate, and the organization fee shall be transmitted to
the secretary of state, who shall thereupon then record both the
articles of incorporation and the certificate.
(f) The capital stock
of a captive insurance company incorporated as a stock insurance company shall
be issued at not less than par value, and all capital insurance companies shall
have the minimum capital provided in § 27-43-4.
(g) (1) In the case
of a captive insurance company formed as a corporation in this state, at least
one of the members of the board of directors of a captive insurance company
incorporated in this state shall be a resident of this state.
(2) In the case of a
captive insurance company formed as a reciprocal insurer in this state, at
least one of the members of the subscribers' advisory committee shall be a
resident of this state.
(h) Every captive
insurance company referenced within this subsection has the powers contained in
this chapter, and is subject to the provisions of this chapter, chapter 1 of
this title, and chapter 1.1 of title 7; provided, that insofar as the
provisions of this chapter are inconsistent with the provisions of chapter 1 of
this title or chapter 1.1 of title 7, the provisions of this chapter are
controlling.
(i) Captive insurance
companies formed as corporations under the provisions of this chapter have the
privileges and are subject to the provisions of the general corporation law and
the applicable provisions contained in this chapter. In the event of conflict
between the provisions of the general corporation law and the provisions of
this chapter, this chapter controls.
(j) Captive insurance
companies formed as reciprocal insurers under the provisions of this chapter
have all the privileges and are subject to all the obligations imposed by
chapter 17 of this title in addition to the applicable provisions of this
chapter. In the event of a conflict between the provisions of chapter 17 and
the provisions of this chapter, this chapter controls. However, to the extent
that chapter 17 also subjects a reciprocal insurer to the other provisions of
this title, these other provisions are not applicable to a reciprocal insurer
formed under this chapter unless these provisions are expressly made applicable
to these captive insurance companies by this chapter.
(k) The articles of
incorporation or bylaws of a captive insurance company formed as a corporation
may authorize a quorum of a board of directors to consist of no fewer than one
third (1/3) of the fixed or a majority of the prescribed number of directors as
determined by the charter or the bylaws of the corporation or by paragraph
34 of section 1.1 of title 7 § 7-1.1-34.
(l) The subscribers'
agreement or other organizing document of a captive insurance company formed as
a reciprocal insurer may authorize a quorum of a subscriber's advisory
committee to consist of no less than one third (1/3) of the number of its
members.
SECTION 88. Sections
27-46-4 and 27-46-8 of the General Laws in Chapter 27-46 entitled "Risk
Retention Act" are hereby amended to read as follows:
27-46-4. Risk
retention groups not chartered in this state. -- Risk retention groups chartered and licensed
in states other than this state and seeking to do business as a risk retention
group in this state shall comply with the laws of this state as follows:
(1) Notice of operations
and designation of commissioner as agent.
(i) Before offering
insurance in this state, a risk retention group shall submit to the
commissioner:
(A) A statement
identifying the state or states in which the risk retention group is chartered
and licensed as a liability insurance company, charter date, its principal
place of business, and such any other information, including
information on its membership, as that the commissioner of this state
may require to verify that the risk retention group is qualified under §
27-46-2(11);
(B) A copy of its
plan of operations or feasibility study and revisions of the plan or study
submitted to the state in which the risk retention group is chartered and
licensed; provided, however, that the provision relating to the submission of a
plan of operation or feasibility study shall not apply with respect to any line
or classification of liability insurance which:
(I) Was defined in §
15 U.S.C. 3901 et seq. before October 27, 1986; and
(II) Was offered
before that date by any risk retention group which had been chartered and
operating for not less than three (3) years before that date;
(ii) The risk
retention group shall submit a copy of any revision to its plan of operation or
feasibility study required by § 27-46-3(b) at the same time that the revisions
is submitted to the commissioner of its chartering state; and
(iii) The risk
retention group shall submit a statement of registration which designates the
commissioner as its agents for the purpose of receiving service of legal
documents or process;
(2) Financial
condition. Any risk retention group doing business in this state shall
submit to the commissioner:
(i) A copy of the
group's financial statement submitted annually to the state in which the risk
retention group is chartered and licensed which shall be certified by an
independent public accountant and contain a statement of opinion on loss and
loss adjustment expense reserves made by a member of the American academy of
actuaries or a qualified loss reserve specialist, under criteria established by
the national association of insurance commissioners;
(ii) A copy of each
examination of the risk retention group as certified by the commissioner or
public official conducting the examination;
(iii) Upon request by
the commissioner, a copy of any information or document pertaining to any
outside audit performed with respect to the risk retention group; and
(iv) Such Any
information as that may be required to verify its continuing
qualification as a risk retention group under § 27-46-2(11);
(3) Taxation.
(i) Each risk
retention group shall be liable for the payment of premium taxes and taxes on
premiums of direct business for risks resident or located within this state,
and shall report to the commissioner the net premiums written for risks
resident or located within this state. The risk retention group shall be
subject to taxation, and any applicable fines and penalties related thereto
to taxation, on the same basis as a foreign admitted insurer;
(ii) To the extent
licensed agents or brokers or insurance producers are utilized pursuant to §
27-46-12, they shall report to the commissioner the premiums for direct
business for risks resident or located within this state which those licensees
have placed with or on behalf of a risk retention group not chartered in this
state;
(iii) To the extent
that insurance agents or brokers or producers are utilized pursuant to §
27-46-12, the agent or broker or insurance producers shall keep a complete and
separate record of all policies procured from each risk retention group, which
record shall be open to examination by the commissioner. The total cost of the
examinations shall be paid for in the same manner as set forth in § 27-13-1.
These records shall, for each policy and each kind of insurance provided thereunder
under them, include the following:
(A) The limit of
liability;
(B) The time period
covered;
(C) The effective
date;
(D) The name of the
risk retention group which issued the policy;
(E) The gross premium
charged; and
(F) The amount of
return premiums, if any;
(4) Adherence to
fair claims settlement practices. Any risk retention group, its agents, and
representatives shall comply with any law or regulations regarding claims
settlement practices;
(5) Deceptive,
false, or fraudulent practices. Any risk retention group shall comply with
and be subject to the laws of this state regarding deceptive, false, or
fraudulent acts or practices;
(6) Examination
regarding financial condition. Any risk retention group must submit to an
examination by the commissioner to determine its financial condition if the
commissioner of the jurisdiction in which the group is chartered and licensed
has not initiated an examination or does not initiate an examination within
sixty (60) days after a request by the commissioner of this state. Any
examination shall be coordinated to avoid unjustified repetition and conducted
in an expeditious matter and in accordance with the NAIC's examiner handbook.
The total cost of the examination shall be paid for in the same manner as set
forth in § 27-13-1;
(7) Notice of purchasers. Every
application form for insurance from a risk retention group, and every policy,
on its front and declaration pages, issued by a risk retention group, shall
contain in ten (10) point type the following notice:
NOTICE
THIS POLICY IS ISSUED BY YOUR RISK RETENTION
GROUP. YOUR RISK RETENTION GROUP MAY NOT BE SUBJECT TO ALL OF THE INSURANCE
LAWS AND REGULATIONS OF YOUR STATE. STATE INSURANCE INSOLVENCY GUARANTY FUNDS
ARE NOT AVAILABLE FOR YOUR RISK RETENTION GROUP.
(8) Prohibited
acts regarding solicitation or sale. The following acts by a risk retention
group are hereby prohibited:
(i) The solicitation
or sale of insurance by a risk retention group to any person who is not
eligible for membership in the group; and
(ii) The solicitation
or sale of insurance, by, or operation of, a risk retention group that is in
hazardous financial condition or financially impaired;
(9) Prohibition on
ownership by an insurance company. No risk retention group shall be allowed
to do business in this state if an insurance company is directly or indirectly
a member or owner of the risk retention group, other than in the case of a risk
retention group all of whose members are insurance companies;
(10) Prohibited
coverage. The terms of any insurance policy issued by any risk retention
group shall not provide, or be construed to provide, coverage prohibited
generally by statute of this state or declared unlawful by the highest court of
this state whose law applies to the policy;
(11) Delinquency
proceedings. A risk retention group not chartered in this state and doing business
in this state shall comply with a lawful order issued in a voluntary
dissolution proceeding or in a delinquency or liquidation proceeding commenced
by the state insurance commissioner if there has been a finding of financial
impairment after an examination under subsection subdivision (6) of
this section; and
(12) Penalties.
A risk retention group that violates any provision of this chapter will be
subject to fines and penalties including revocation of its right to do business
in this state, applicable to licensed insurers generally.; and
(13) Operation prior to enactment of this
chapter. In addition to complying with the requirements of this section, any
risk retention group operating in this state prior to enactment of this chapter
shall, within thirty (30) days after June 18, 1991, comply with the provision
of subsection (1)(i).
27-46-8. Notice and
registration requirements of purchasing groups. -- (a) A purchasing group which intends to do
business in this state shall, prior to doing business, furnish notice to the
commissioner which shall:
(1) Identify the
state in which the group is domiciled;
(2) Identify all
other states in which the group intends to do business;
(3) Specify the lines
and classifications of liability insurance which the purchasing group intends
to purchase;
(4) Identify the
insurance company or companies from which the group intends to purchase its
insurance and the domicile of the company;
(5) Specify the
method by which, and the person or persons, if any, through whom insurance will
be offered to its members whose risks are resident or located in this state;
(6) Identify the
principal place of business of the group; and
(7) Provide such
any other information as that may be required by the
commissioner to verify that the purchasing group is qualified under §
27-46-2(10).
(b) A purchasing
group shall, within ten (10) days, notify the commissioner of any changes in
any of the items set forth in subsection (a) of this section.
(c) The purchasing
group shall register with and designate the commissioner as its agent solely
for the purpose of receiving service of legal documents or process, for which a
filing fee shall be determined by the commissioner, except that these
requirements shall not apply in the case of a purchasing group which only
purchases insurance that was authorized under the federal Products Liability
Risk Retention Act of 1981, 15 U.S.C. § 3901 et seq., and:
(1) Which in any
state of the United States:
(i) Was domiciled
before April 1, 1986; and
(ii) Is domiciled on
and after October 27, 1986;
(2) Which:
(i) Before October
27, 1986 purchased insurance from an insurance carrier licensed in any state;
and
(ii) Since October
27, 1986 purchased its insurance from an insurance carrier licensed in any state;
or
(3) Which was a
purchasing group under the requirements of 15 U.S.C. § 3901 et seq. before
October 27, 1986.
(d) Each purchasing
group that is required to give notice pursuant to subsection (a) shall also
furnish the information that may be required by the commissioner to:
(1) Verify that the
entity qualifies as a purchasing group;
(2) Determine where
the purchasing group is located; and
(3) Determine
appropriate tax treatment.
(e) Any purchasing
group which was doing business in this state prior to the enactment of this
chapter, within thirty (30) days after June 18, 1991, shall furnish notice to
the commissioner pursuant to the provisions of subsection (a) and furnish the
information that may be required pursuant to subsections (b) and (c).
SECTION 89. Section
27-49-3.1 of the General Laws in Chapter 27-49 entitled "Motor Vehicle
Theft and Motor Vehicle Insurance Fraud Reporting - Immunity Act" is
hereby amended to read as follows:
27-49-3.1.
Disclosure of personal information obtained in connection with motor vehicle
records. -- (a) Purpose.
The purpose of this section is to implement the federal Driver's Privacy
Protection Act of 1994 ("DPPA"), 18 U.S.C. § 2721.
(b) Definitions.
As defined in 18 U.S.C. § 2725, the following definitions apply to this
section:
(1) "Motor
vehicle record" means any record that pertains to a motor vehicle
operator's permit, motor vehicle title, motor vehicle registration, or
identification card issued by the department of motor vehicles;
(2)
"Person" means an individual, organization, or entity, but does not
include a state or agency thereof of a state; and
(3) "Personal
information" means information that identifies an individual, including an
individual's photograph, social security number, driver identification number,
name, address (but not the 5 digit zip code), telephone number, and medical or
disability information, but does not include information on vehicular
accidents, driving violations, and driver's status.
(c) Prohibition on
release and use of certain personal information from state motor vehicle
records.
(1) In general.
Except as provided in subsection (c) subdivision (2) of this
section, the department of motor vehicles, and any officer, employee, or
contractor thereof of the department, shall not knowingly
disclose or otherwise make available to any person or entity personal
information about any individual obtained by the department in connection with
a motor vehicle record.
(2) Permissible
uses. Personal information referred to in subsection (c) subdivision
(1) of this section shall be disclosed for use in connection with
matters of motor vehicle or driver safety and theft, motor vehicle emissions,
motor vehicle product alterations, recalls, or advisories, performance
monitoring of motor vehicles and dealers by motor vehicle manufacturers, and
removal of nonowner records from the original owner records of motor vehicles
manufacturers to carry out the purposes of the Automobile Information
Disclosure Act, 15 U.S.C. § 1231 et seq., the Motor Vehicle Information
and Cost Saving Act (see now 49 U.S.C. § 32101 et seq.), the National
Traffic and Motor Vehicle Safety Act of 1966 (see now 49 U.S.C. § 30101 et
seq.), and Anti-Car Theft Act of 1992 (see now 49 U.S.C. § 32101 et
seq.), and the Clean Air Act, 42 U.S.C. § 7401 et seq., and may be
disclosed as follows:
(i) (a) For use by any government agency,
including any court or law enforcement agency, in carrying out its functions,
or any private person or entity acting on behalf of a federal, state, or local
agency in carrying out its functions.
(ii) (b) For use in connection with matters of motor vehicle or driver safety and
theft; motor vehicle emissions; motor vehicle product alterations, recalls or
advisories; performance monitoring of motor vehicles, motor vehicle parts and
dealers; motor vehicle market research activities, including survey research;
and removal of nonowner records from the original owner records of motor
vehicle manufacturers.
(iii) (c) For use in the normal course of
business by a legitimate business or its agents, employees, or contractors, but
only:
(A) (i) To verify the accuracy of
personal information submitted by the individual to the business of its agents,
employees, or contractors, and
(B) (ii) If the information as submitted
is not correct or is no longer correct, to obtain the correct information, but
only for the purposes of preventing fraud by pursuing legal remedies against,
or recovering on a debt or security interest against, the individual.
(iv) (d) For use in connection with any
civil, criminal, administrative, or arbitral proceeding in any federal, state,
or local agency or before any self-regulatory body, including the service of
process, investigation in anticipation of litigation, and the execution or
enforcement of judgments and orders, or pursuant to an order of a federal,
state, or local court.
(v) (e) For use in research activities,
and for use in producing statistical reports, so long as the personal
information is not published, redisclosed, or used to contact the individuals.
(vi) (f) For use by any insurer or
insurance support organization, or by a self-insured entity, or its agents,
employees, or contractors in connection with claims investigation activities,
anti-fraud activities, rating or underwriting.
(vii) (g) For use in providing notice to
the owners of towed or impounded vehicles.
(viii) (h) For use by any licensed private
investigative agency or licensed security service for any purpose permitted
under this subsection.
(ix) (i) For use by an employer or its
agent or insurer to obtain or verify information relating to a holder of a
commercial driver's license that is required under the Commercial Motor Vehicle
Safety Act of 1986 (49 U.S.C. App. 2710 et seq. [ (see now 49
U.S.C. § 31301 et seq.).]).
(x) (j) For use in connection with the
operation of private toll transportation facilities.
(xi) (k) For any other use in response to a
request for individual motor vehicle records, unless such that
use is prohibited by the individual.
(xii) (l) For bulk distribution for
surveys, marketing or solicitations, provided that the information will be
used, rented or sold solely for bulk distribution for surveys, marketing, and
solicitations and that surveys, marketing, and solicitations will not be
directed at those individuals who have requested in a timely fashion that they
not be directed at them.
(3) Notice.
The department of motor vehicles shall provide in a clear and conspicuous
manner on forms for issuance or renewal of operators permits, titles,
registrations or identification cards, notice that personal information
collected by the department may be disclosed to any business or person and
provide in a clear and conspicuous manner on the forms an opportunity to
prohibit such the disclosures; provided, further, however, that
social security numbers and medical or disability information shall not be
subject to disclosure under this chapter.
SECTION 90. Sections
27-50-3, 27-50-4, and 27-50-7 of the General Laws in Chapter 27-50 entitled
"Small Employer Health Insurance Availability Act" are hereby amended
to read as follows:
27-50-3.
Definitions. -- (a)
"Actuarial certification" means a written statement signed by a
member of the American academy of actuaries or other individual acceptable to
the director that a small employer carrier is in compliance with the provisions
of § 27-50-5, based upon the person's examination and including a review of the
appropriate records and the actuarial assumptions and methods used by the small
employer carrier in establishing premium rates for applicable health benefit
plans.
(b) "Adjusted
community rating" means a method used to develop a carrier's premium which
spreads financial risk across the carrier's entire small group population in
accordance with the requirements in § 27-50-5.
(c)
"Affiliate" or "affiliated" means any entity or person who
directly or indirectly through one or more intermediaries controls or is
controlled by, or is under common control with, a specified entity or person.
(d) "Affiliation
period" means a period of time that must expire before health insurance
coverage provided by a carrier becomes effective, and during which the carrier
is not required to provide benefits.
(e) "Basic
health benefit plan" means the health benefit plan developed pursuant to
the provisions of § 27-50-10.
(f) "Bona fide
association" means, with respect to health benefit plans offered in this
state, an association which:
(1) Has been actively
in existence for at least five (5) years;
(2) Has been formed
and maintained in good faith for purposes other than obtaining insurance;
(3) Does not
condition membership in the association on any health-status related factor
relating to an individual (including an employee of an employer or a dependent
of an employee);
(4) Makes health
insurance coverage offered through the association available to all members
regardless of any health status-related factor relating to those members (or
individuals eligible for coverage through a member);
(5) Does not make
health insurance coverage offered through the association available other than
in connection with a member of the association;
(6) Is composed of
persons having a common interest or calling;
(7) Has a
constitution and bylaws; and
(8) Meets any
additional requirements that the director may prescribe by regulation.
(g)
"Carrier" or "small employer carrier" means all entities
licensed, or required to be licensed, in this state that offer health benefit
plans covering eligible employees of one or more small employers pursuant to
this chapter. For the purposes of this chapter, carrier includes an insurance
company, a nonprofit hospital or medical service corporation, a fraternal
benefit society, a health maintenance organization as defined in chapter 41 of
this title or as defined in chapter 62 of title 42, or any other entity
providing a plan of health insurance or health benefits subject to state
insurance regulation.
(h) "Church
plan" has the meaning given this term under section 3(33) of the Employee
Retirement Income Security Act of 1974 [29 U.S.C. § 1002(33)].
(i)
"Control" shall be defined in the same manner as in chapter 35 of
this title.
(j) (1) "Creditable
coverage" means, with respect to an individual, health benefits or
coverage provided under any of the following:
(i) A group health
plan;
(ii) A health benefit
plan;
(iii) Part A or part
B of Title XVIII of the Social Security Act, [42 U.S.C. § 1395c
et seq. or 42 U.S.C. § 1395j et seq.] (Medicare);
(iv) Title XIX of the
Social Security Act, [42 U.S.C. § 1396 et seq.] (Medicaid),
other than coverage consisting solely of benefits under section 1928 [42
U.S.C. § 1396s] (the program for distribution of pediatric vaccines);
(v) Chapter 55 of
title 10, United States Code [10 U.S.C. § 1071 et seq.] (medical and
dental care for members and certain former members of the uniformed services,
and for their dependents) (Civilian Health and Medical Program of the Uniformed
Services) (CHAMPUS). For purposes of title 10, chapter 55 10 U.S.C. §
1071 et seq., "uniformed services" means the armed forces and the
commissioned corps of the national oceanic and atmospheric administration and
of the public health service;
(vi) A medical care
program of the indian health service Indian Health Service or of
a tribal organization;
(vii) A state health
benefits risk pool;
(viii) A health plan
offered under chapter 89 of title 5, United States Code [5 U.S.C. § 8901
et seq.] (Federal Employees Health Benefits Program (FEHBP));
(ix) A public health
plan, which for purposes of this chapter, means a plan established or
maintained by a state, county, or other political subdivision of a state that
provides health insurance coverage to individuals enrolled in the plan; or
(x) A health benefit
plan under section 5(e) of the Peace Corps Act (22 U.S.C. 2504(e)).
(2) A period of
creditable coverage shall not be counted, with respect to enrollment of an individual
under a group health plan, if, after the period and before the enrollment date,
the individual experiences a significant break in coverage.
(k)
"Dependent" means a spouse, an unmarried child under the age of
nineteen (19) years, an unmarried child who is a full-time student under the
age of twenty-five (25) years and who is financially dependent upon the parent,
and an unmarried child of any age who is medically certified as disabled and
dependent upon the parent.
(l)
"Director" means the director of the department of business
regulation.
(m) "Economy
health plan" means a lower cost health benefit plan developed pursuant to
the provisions of § 27-50-10.
(n) "Eligible
employee" means an employee who works on a full-time basis with a normal
work week of thirty (30) or more hours, except that at the employer's sole
discretion, the term shall also include an employee who works on a full-time
basis with a normal work week of anywhere between at least seventeen and
one-half (17.5) and thirty (30) hours, so long as this eligibility criterion is
applied uniformly among all of the employer's employees and without regard to
any health status-related factor. The term includes a self-employed individual,
a sole proprietor, a partner of a partnership, and may include an independent
contractor, if the self-employed individual, sole proprietor, partner, or
independent contractor is included as an employee under a health benefit plan
of a small employer, but does not include an employee who works on a temporary
or substitute basis or who works less than seventeen and one-half (17.5) hours
per week. Persons covered under a health benefit plan pursuant to the
Consolidated Omnibus Budget Reconciliation Act of 1986 shall not be considered
"eligible employees" for purposes of minimum participation
requirements pursuant to § 27- 50-7(d)(9).
(o) "Enrollment
date" means the first day of coverage or, if there is a waiting period,
the first day of the waiting period, whichever is earlier.
(p) "Established
geographic service area" means a geographic area, as approved by the
director and based on the carrier's certificate of authority to transact
insurance in this state, within which the carrier is authorized to provide
coverage.
(q) "Family
composition" means:
(1) Enrollee;
(2) Enrollee, spouse
and children;
(3) Enrollee and
spouse; or
(4) Enrollee and
children.
(r) "Genetic
information" means information about genes, gene products, and inherited
characteristics that may derive from the individual or a family member. This
includes information regarding carrier status and information derived from
laboratory tests that identify mutations in specific genes or chromosomes,
physical medical examinations, family histories, and direct analysis of genes
or chromosomes.
(s) "Governmental
plan" has the meaning given the term under section 3(32) of the Employee
Retirement Income Security Act of 1974, [29 U.S.C. § 1002(32),]
and any federal governmental plan.
(t) (1) "Group
health plan" means an employee welfare benefit plan as defined in section
3(1) of the Employee Retirement Income Security Act of 1974, [29
U.S.C. § 1002(1),] to the extent that the plan provides medical
care, as defined in subsection (z), and including items and services paid for
as medical care to employees or their dependents as defined under the terms of
the plan directly or through insurance, reimbursement, or otherwise.
(2) For purposes of
this chapter:
(i) Any plan, fund,
or program that would not be, but for PHSA section 2721(e), [42
U.S.C. § 300gg(e),], as added by Pub. L. No. 104-191, an employee
welfare benefit plan and that is established or maintained by a partnership, to
the extent that the plan, fund or program provides medical care, including
items and services paid for as medical care, to present or former partners in
the partnership, or to their dependents, as defined under the terms of the
plan, fund or program, directly or through insurance, reimbursement or
otherwise, shall be treated, subject to subparagraph paragraph
(ii) of this subdivision, as an employee welfare benefit plan that is a
group health plan;
(ii) In the case of a
group health plan, the term "employer" also includes the partnership
in relation to any partner; and
(iii) In the case of
a group health plan, the term "participant" also includes an
individual who is, or may become, eligible to receive a benefit under the plan,
or the individual's beneficiary who is, or may become, eligible to receive a
benefit under the plan, if:
(A) In connection
with a group health plan maintained by a partnership, the individual is a
partner in relation to the partnership; or
(B) In connection
with a group health plan maintained by a self-employed individual, under which
one or more employees are participants, the individual is the self-employed
individual.
(u) (1) "Health
benefit plan" means any hospital or medical policy or certificate, major
medical expense insurance, hospital or medical service corporation subscriber contract,
or health maintenance organization subscriber contract. Health benefit plan
includes short-term and catastrophic health insurance policies, and a policy
that pays on a cost-incurred basis, except as otherwise specifically exempted
in this definition.
(2) "Health
benefit plan" does not include one or more, or any combination of, the
following:
(i) Coverage only for
accident or disability income insurance, or any combination of those;
(ii) Coverage issued
as a supplement to liability insurance;
(iii) Liability
insurance, including general liability insurance and automobile liability
insurance;
(iv) Workers'
compensation or similar insurance;
(v) Automobile
medical payment insurance;
(vi) Credit-only
insurance;
(vii) Coverage for
on-site medical clinics; and
(viii) Other similar
insurance coverage, specified in federal regulations issued pursuant to Pub. L.
No. 104-191, under which benefits for medical care are secondary or incidental
to other insurance benefits.
(3) "Health
benefit plan" does not include the following benefits if they are provided
under a separate policy, certificate, or contract of insurance or are otherwise
not an integral part of the plan:
(i) Limited scope
dental or vision benefits;
(ii) Benefits for
long-term care, nursing home care, home health care, community-based care, or
any combination of those; or
(iii) Other similar,
limited benefits specified in federal regulations issued pursuant to Pub. L.
No. 104-191.
(4) "Health
benefit plan" does not include the following benefits if the benefits are
provided under a separate policy, certificate or contract of insurance, there
is no coordination between the provision of the benefits and any exclusion of
benefits under any group health plan maintained by the same plan sponsor, and
the benefits are paid with respect to an event without regard to whether
benefits are provided with respect to such an event under any group health plan
maintained by the same plan sponsor:
(i) Coverage only for
a specified disease or illness; or
(ii) Hospital
indemnity or other fixed indemnity insurance.
(5) "Health
benefit plan" does not include the following if offered as a separate
policy, certificate, or contract of insurance:
(i) Medicare
supplemental health insurance as defined under section 1882(g)(1) of the Social
Security Act, [42 U.S.C. § 1395ss(g)(1);];
(ii) Coverage
supplemental to the coverage provided under chapter 55 of title 10, United
States Code [10 U.S.C. § 1071 et seq.;]; or
(iii) Similar
supplemental coverage provided to coverage under a group health plan.
(6) A carrier
offering policies or certificates of specified disease, hospital confinement
indemnity, or limited benefit health insurance shall comply with the following:
(i) The carrier files
on or before March 1 of each year a certification with the director that
contains the statement and information described in subparagraph paragraph
(ii) of this subdivision;
(ii) The
certification required in subparagraph paragraph (i) of this
subdivision shall contain the following:
(A) A statement from
the carrier certifying that policies or certificates described in this
paragraph are being offered and marketed as supplemental health insurance and
not as a substitute for hospital or medical expense insurance or major medical
expense insurance; and
(B) A summary
description of each policy or certificate described in this paragraph,
including the average annual premium rates (or range of premium rates in cases
where premiums vary by age or other factors) charged for those policies and
certificates in this state; and
(iii) In the case of
a policy or certificate that is described in this paragraph and that is offered
for the first time in this state on or after the effective date of the
chapter [July 13, 2000,], the carrier files shall
file with the director the information and statement required in subparagraph
paragraph (ii) of this subdivision at least thirty (30) days
prior to the date the policy or certificate is issued or delivered in this
state.
(v) "Health
maintenance organization" or "HMO" means a health maintenance
organization licensed under chapter 41 of this title.
(w) "Health
status-related factor" means any of the following factors:
(1) Health status;
(2) Medical
condition, including both physical and mental illnesses;
(3) Claims
experience;
(4) Receipt of health
care;
(5) Medical history;
(6) Genetic
information;
(7) Evidence of
insurability, including conditions arising out of acts of domestic violence; or
(8) Disability.
(x) (1) "Late
enrollee" means an eligible employee or dependent who requests enrollment
in a health benefit plan of a small employer following the initial enrollment
period during which the individual is entitled to enroll under the terms of the
health benefit plan, provided that the initial enrollment period is a period of
at least thirty (30) days.
(2) "Late
enrollee" does not mean an eligible employee or dependent:
(i) Who meets each of
the following:
(A) The individual
was covered under creditable coverage at the time of the initial enrollment;
(B) The individual
lost creditable coverage as a result of cessation of employer contribution,
termination of employment or eligibility, reduction in the number of hours of
employment, involuntary termination of creditable coverage, or death of a
spouse, divorce or legal separation, or the individual and/or dependents are
determined to be eligible for RIteCare under chapter 5.1 of title 40 or chapter
12.3 of title 42 or for RIteShare under chapter 8.4 of title 40; and
(C) The individual
requests enrollment within thirty (30) days after termination of the creditable
coverage or the change in conditions that gave rise to the termination of
coverage;
(ii) If, where
provided for in contract or where otherwise provided in state law, the
individual enrolls during the specified bona fide open enrollment period;
(iii) If the
individual is employed by an employer which offers multiple health benefit
plans and the individual elects a different plan during an open enrollment
period;
(iv) If a court has ordered
coverage be provided for a spouse or minor or dependent child under a covered
employee's health benefit plan and a request for enrollment is made within
thirty (30) days after issuance of the court order;
(v) If the individual
changes status from not being an eligible employee to becoming an eligible
employee and requests enrollment within thirty (30) days after the change in
status;
(vi) If the
individual had coverage under a COBRA continuation provision and the coverage
under that provision has been exhausted; or
(vii) Who meets the
requirements for special enrollment pursuant to § 27-50-7 or 27-50-8.
(y) "Limited
benefit health insurance" means that form of coverage that pays stated
predetermined amounts for specific services or treatments or pays a stated
predetermined amount per day or confinement for one or more named conditions,
named diseases or accidental injury.
(z) "Medical
care" means amounts paid for:
(1) The diagnosis,
care, mitigation, treatment, or prevention of disease, or amounts paid for the
purpose of affecting any structure or function of the body;
(2) Transportation
primarily for and essential to medical care referred to in subdivision (1); and
(3) Insurance
covering medical care referred to in subdivisions (1) and (2) of this
subsection.
(aa) "Network
plan" means a health benefit plan issued by a carrier under which the
financing and delivery of medical care, including items and services paid for
as medical care, are provided, in whole or in part, through a defined set of
providers under contract with the carrier.
(bb)
"Person" means an individual, a corporation, a partnership, an
association, a joint venture, a joint stock company, a trust, an unincorporated
organization, any similar entity, or any combination of the foregoing.
(cc) "Plan
sponsor" has the meaning given this term under section 3(16)(B) of the
Employee Retirement Income Security Act of 1974, [29 U.S.C. §
1002(16)(B).].
(dd) (1)
"Preexisting condition" means a condition, regardless of the cause of
the condition, for which medical advice, diagnosis, care, or treatment was
recommended or received during the six (6) months immediately preceding the
enrollment date of the coverage.
(2) "Preexisting
condition" does not mean a condition for which medical advice, diagnosis,
care, or treatment was recommended or received for the first time while the
covered person held creditable coverage and that was a covered benefit under
the health benefit plan, provided that the prior creditable coverage was
continuous to a date not more than ninety (90) days prior to the enrollment
date of the new coverage.
(3) Genetic
information shall not be treated as a condition under subdivision (1) of
this subsection for which a preexisting condition exclusion may be imposed
in the absence of a diagnosis of the condition related to the information.
(ee)
"Premium" means all moneys paid by a small employer and eligible
employees as a condition of receiving coverage from a small employer carrier,
including any fees or other contributions associated with the health benefit
plan.
(ff)
"Producer" means any insurance producer licensed under chapter 2.4 of
this title.
(gg) "Rating
period" means the calendar period for which premium rates established by a
small employer carrier are assumed to be in effect.
(hh) "Restricted
network provision" means any provision of a health benefit plan that
conditions the payment of benefits, in whole or in part, on the use of health
care providers that have entered into a contractual arrangement with the carrier
pursuant to provide health care services to covered individuals.
(ii) "Risk
adjustment mechanism" means the mechanism established pursuant to §
27-50-16.
(jj)
"Self-employed individual" means an individual or sole proprietor who
derives a substantial portion of his or her income from a trade or business
through which the individual or sole proprietor has attempted to earn taxable
income and for which he or she has filed the appropriate Internal Revenue
Service Form 1040, Schedule C or F, for the previous taxable year.
(kk)
"Significant break in coverage" means a period of ninety (90)
consecutive days during all of which the individual does not have any
creditable coverage, except that neither a waiting period nor an affiliation
period is taken into account in determining a significant break in coverage.
(ll) "Small
employer" means, except for its use in § 27-50-7, any person, firm,
corporation, partnership, association, political subdivision, or self-employed
individual that is actively engaged in business, including but not limited to a
business or a corporation organized under the Rhode Island Non-Profit
Corporation Act, chapter 6 of title 7, or a similar act of another state that,
on at least fifty percent (50%) of its working days during the preceding
calendar quarter, employed no more than fifty (50) eligible employees, with a
normal work week of thirty (30) or more hours, the majority of whom were
employed within this state, and is not formed primarily for purposes of buying
health insurance and in which a bona fide employer-employee relationship
exists. In determining the number of eligible employees, companies that are
affiliated companies, or that are eligible to file a combined tax return for
purposes of taxation by this state, shall be considered one employer.
Subsequent to the issuance of a health benefit plan to a small employer and for
the purpose of determining continued eligibility, the size of a small employer
shall be determined annually. Except as otherwise specifically provided, provisions
of this chapter that apply to a small employer shall continue to apply at least
until the plan anniversary following the date the small employer no longer
meets the requirements of this definition. The term small employer includes a
self-employed individual.
(mm) "Standard
health benefit plan" means a health benefit plan developed pursuant to the
provisions of § 27-50-10.
(nn)
"Waiting period" means, with respect to a group health plan and an
individual who is a potential enrollee in the plan, the period that must pass
with respect to the individual before the individual is eligible to be covered
for benefits under the terms of the plan. For purposes of calculating periods
of creditable coverage pursuant to subsection (j)(2) of this section, a waiting
period shall not be considered a gap in coverage.
27-50-5.
Restrictions relating to premium rates. -- (a) Premium rates for health benefit plans subject to this chapter are
subject to the following provisions:
(1) Subject to
subdivision (2) of this subsection, a small employer carrier shall
develop its rates based on an adjusted community rate and may only vary the
adjusted community rate for:
(i) Age;
(ii) Gender; and
(iii) Family
composition.
(2) Until October 1,
2002, a small employer carrier who as of June 1, 2000, varied rates by health
status may vary the adjusted community rates for health status by ten percent
(10%), provided that the resulting rates comply with the other requirements of
this section, including subdivision (5) of this subsection. After
October 1, 2002, no small employer carrier may vary the adjusted community rate
based on health status.
(3) The adjustment
for age in subparagraph paragraph (1)(i) of this subsection
may not use age brackets smaller than five year increments and these shall
begin with age thirty (30) and end with age sixty-five (65).
(4) The small
employer carriers are permitted to develop separate rates for individuals age
sixty-five (65) or older for coverage for which Medicare is the primary payer
and coverage for which Medicare is not the primary payer. Both rates are
subject to the requirements of this subsection.
(5) For each health
benefit plan offered by a carrier, the highest premium rate for each family
composition type shall not exceed two (2) times the premium rate that could be
charged to a small employer with the lowest premium rate for that family
composition type, effective two (2) years after enactment of this chapter [July
13, 2000.]. During the first two (2) years after enactment of
this chapter the highest premium rate for each family composition type shall
not exceed four (4) times the premium rate that could be charged to a small
employer with the lowest premium rate for that family composition.
(6) [Effective
until September 30, 2002.] Upon renewal of a health benefit plan, the premium
rate for each group shall not exceed the premium rate charged by that carrier
to that group during the prior rating period by more than: (i) cost and
utilization trends for that carrier; plus (ii) the sum of any premium changes
due to changes in the size, age, gender or family composition of the group;
plus, (iii) ten percent (10%); plus (iv) the change in the actuarial value of
the benefits due to changes in the health benefit plan for that group. This
subdivision expires on September 30, 2002.
(6) (7) Premium rates for bona fide
associations shall comply with the requirements of § 27-50-5.
(b) The premium
charged for a health benefit plan may not be adjusted more frequently than annually
except that the rates may be changed to reflect:
(1) Changes to the
enrollment of the small employer;
(2) Changes to the
family composition of the employee; or
(3) Changes to the
health benefit plan requested by the small employer.
(c) Premium rates for
health benefit plans shall comply with the requirements of this section.
(d) Small employer
carriers shall apply rating factors consistently with respect to all small
employers. Rating factors shall produce premiums for identical groups which
differ only by the amounts attributable to plan design and do not reflect
differences due to the nature of the groups assumed to select particular health
benefit plans. However, nothing in this section shall be construed to prevent a
group health plan and a health insurance carrier offering health insurance
coverage from establishing premium discounts or rebates or modifying otherwise
applicable copayments or deductibles in return for adherence to programs of
health promotion and disease prevention, provided that the resulting rates
comply with the other requirements of this section, including subdivision
(a)(5) of this section.
(e) For the purposes
of this section, a health benefit plan that contains a restricted network
provision shall not be considered similar coverage to a health benefit plan
that does not contain such a provision, provided that the restriction of
benefits to network providers results in substantial differences in claim
costs.
(f) The director may
establish regulations to implement the provisions of this section and to assure
that rating practices used by small employer carriers are consistent with the
purposes of this chapter, including regulations that assure that differences in
rates charged for health benefit plans by small employer carriers are
reasonable and reflect objective differences in plan design or coverage (not
including differences due to the nature of the groups assumed to select
particular health benefit plans or separate claim experience for individual
health benefit plans).
(g) In connection
with the offering for sale of any health benefit plan to a small employer, a
small employer carrier shall make a reasonable disclosure, as part of its
solicitation and sales materials, of all of the following:
(1) The provisions of
the health benefit plan concerning the small employer carrier's right to change
premium rates and the factors, other than claim experience, that affect changes
in premium rates;
(2) The provisions
relating to renewability of policies and contracts;
(3) The provisions
relating to any preexisting condition provision; and
(4) A listing of and
descriptive information, including benefits and premiums, about all benefit
plans for which the small employer is qualified.
(h) (1) Each small
employer carrier shall maintain at its principal place of business a complete
and detailed description of its rating practices and renewal underwriting
practices, including information and documentation that demonstrate that its
rating methods and practices are based upon commonly accepted actuarial
assumptions and are in accordance with sound actuarial principles.
(2) Each small
employer carrier shall file with the director annually on or before March 15 an
actuarial certification certifying that the carrier is in compliance with this
chapter and that the rating methods of the small employer carrier are
actuarially sound. The certification shall be in a form and manner, and shall
contain the information, specified by the director. A copy of the certification
shall be retained by the small employer carrier at its principal place of
business.
(3) A small employer
carrier shall make the information and documentation described in subdivision (h)(1)
of this subsection available to the director upon request. Except in
cases of violations of this chapter, the information shall be considered
proprietary and trade secret information and shall not be subject to disclosure
by the director to persons outside of the department except as agreed to by the
small employer carrier or as ordered by a court of competent jurisdiction.
(i)
The
requirements of this section apply to all health benefit plans issued or
renewed on or after October 1, 2000.
(ii)
27-50-7.
Availability of coverage. -- (a)
Until October 1, 2002, for purposes of this section, "small
employer" includes any person, firm, corporation, partnership,
association, or political subdivision that is actively engaged in business that
on at least fifty percent (50%) of its working days during the preceding
calendar quarter, employed a combination of no more than fifty (50) and no less
than two (2) eligible employees and part-time employees, the majority of whom
were employed within this state, and is not formed primarily for purposes of
buying health insurance and in which a bona fide employer-employee relationship
exists. After October 1, 2002, For the purposes of this section,
"small employer" has the meaning used in § 27-50-3(ll).
(b) (1) Every small
employer carrier shall, as a condition of transacting business in this state
with small employers, actively offer to small employers all health benefit
plans it actively markets to small employers in this state including at least
three (3) health benefit plans. One health benefit plan offered by each small
employer carrier shall be a basic health benefit plan, one plan shall be a
standard health benefit plan, and one plan shall be an economy health benefit
plan. A small employer carrier shall be considered to be actively marketing a
health benefit plan if it offers that plan to any small employer not currently
receiving a health benefit plan from the small employer carrier.
(2) Subject to
subdivision (b)(1) of this subsection, a small employer carrier
shall issue any health benefit plan to any eligible small employer that applies
for that plan and agrees to make the required premium payments and to satisfy
the other reasonable provisions of the health benefit plan not inconsistent
with this chapter. However, no carrier is required to issue a health benefit
plan to any self-employed individual who is covered by, or is eligible for
coverage under, a health benefit plan offered by an employer.
(3)
Notwithstanding any other provision in this section, between October 1, 2000,
and September 30, 2002, a carrier may choose to limit the time during which it
will accept new groups for coverage to a period of not less than ninety
consecutive days during each consecutive twelve month period.
(c) (1) A small
employer carrier shall file with the director, in a format and manner
prescribed by the director, the health benefit plans to be used by the carrier.
A health benefit plan filed pursuant to this subdivision may be used by a small
employer carrier beginning thirty (30) days after it is filed unless the
director disapproves its use.
(2) The director may
at any time may, after providing notice and an opportunity for a hearing to the
small employer carrier, disapprove the continued use by a small employer
carrier of a health benefit plan on the grounds that the plan does not meet the
requirements of this chapter.
(d) Health benefit
plans covering small employers shall comply with the following provisions:
(1) A health benefit
plan shall not deny, exclude, or limit benefits for a covered individual for
losses incurred more than six (6) months following the enrollment date of the
individual's coverage due to a preexisting condition, or the first date of the
waiting period for enrollment if that date is earlier than the enrollment date.
A health benefit plan shall not define a preexisting condition more restrictively
than as defined in § 27-50-3.
(2) (i) Except as
provided in subdivision (d)(3) of this subsection, a small
employer carrier shall reduce the period of any preexisting condition exclusion
by the aggregate of the periods of creditable coverage without regard to the
specific benefits covered during the period of creditable coverage, provided
that the last period of creditable coverage ended on a date not more than
ninety (90) days prior to the enrollment date of new coverage.
(ii) The aggregate period
of creditable coverage does not include any waiting period or affiliation
period for the effective date of the new coverage applied by the employer or
the carrier, or for the normal application and enrollment process following
employment or other triggering event for eligibility.
(iii) A carrier that
does not use preexisting condition limitations in any of its health benefit
plans may impose an affiliation period that:
(A) Does not exceed
sixty (60) days for new entrants and not to exceed ninety (90) days for late
enrollees;
(B) During which the
carrier charges no premiums and the coverage issued is not effective; and
(C) Is applied
uniformly, without regard to any health status-related factor.
(iv)
This section does not preclude application of any waiting period applicable to
all new enrollees under the health benefit plan, provided that any
carrier-imposed waiting period be no longer than sixty (60) days.
(3) (i) Instead of as
provided in paragraph (d)(2)(i) of this subsection, a small
employer carrier may elect to reduce the period of any preexisting condition
exclusion based on coverage of benefits within each of several classes or
categories of benefits specified in federal regulations.
(ii) A small employer
electing to reduce the period of any preexisting condition exclusion using the
alternative method described in paragraph (d)(3)(i) of this
subdivision shall:
(A) Make the election
on a uniform basis for all enrollees; and
(B) Count a period of
creditable coverage with respect to any class or category of benefits if any
level of benefits is covered within the class or category.
(iii) A small
employer carrier electing to reduce the period of any preexisting condition
exclusion using the alternative method described under paragraph (d)(3)(i)
of this subdivision shall:
(A) Prominently state
that the election has been made in any disclosure statements concerning
coverage under the health benefit plan to each enrollee at the time of
enrollment under the plan and to each small employer at the time of the offer
or sale of the coverage; and
(B) Include in the
disclosure statements the effect of the election.
(4) (i) A health
benefit plan shall accept late enrollees, but may exclude coverage for late
enrollees for preexisting conditions for a period not to exceed twelve (12)
months.
(ii) A small employer
carrier shall reduce the period of any preexisting condition exclusion pursuant
to subdivision (d)(2) or (d)(3) of this subsection.
(5) A small employer
carrier shall not impose a preexisting condition exclusion:
(i) Relating to
pregnancy as a preexisting condition; or
(ii) With regard to a
child who is covered under any creditable coverage within thirty (30) days of
birth, adoption, or placement for adoption, provided that the child does not experience
a significant break in coverage, and provided that the child was adopted or
placed for adoption before attaining eighteen (18) years of age.
(6) A small employer
carrier shall not impose a preexisting condition exclusion in the case of a
condition for which medical advice, diagnosis, care or treatment was
recommended or received for the first time while the covered person held
creditable coverage, and the medical advice, diagnosis, care or treatment was a
covered benefit under the plan, provided that the creditable coverage was
continuous to a date not more than ninety (90) days prior to the enrollment
date of the new coverage.
(7) (i) A small
employer carrier shall permit an employee or a dependent of the employee, who
is eligible, but not enrolled, to enroll for coverage under the terms of the
group health plan of the small employer during a special enrollment period if:
(A) The employee or
dependent was covered under a group health plan or had coverage under a health
benefit plan at the time coverage was previously offered to the employee or
dependent;
(B) The employee
stated in writing at the time coverage was previously offered that coverage
under a group health plan or other health benefit plan was the reason for
declining enrollment, but only if the plan sponsor or carrier, if applicable,
required that statement at the time coverage was previously offered and
provided notice to the employee of the requirement and the consequences of the
requirement at that time;
(C) The employee's or
dependent's coverage described under subparagraph (d)(7)(i)(A) of
this paragraph:
(I) Was under a COBRA
continuation provision and the coverage under this provision has been
exhausted; or
(II) Was not under a
COBRA continuation provision and that other coverage has been terminated as a
result of loss of eligibility for coverage, including as a result of a legal
separation, divorce, death, termination of employment, or reduction in the
number of hours of employment or employer contributions towards that other coverage
have been terminated; and
(D) Under terms of
the group health plan, the employee requests enrollment not later than thirty
(30) days after the date of exhaustion of coverage described in item (d)(7)(i)(C)(I)
of this paragraph or termination of coverage or employer contribution
described in item (d)(7)(i)(C)(II) of this paragraph.
(ii) If an employee
requests enrollment pursuant to subparagraph (d)(7)(i)(D) of this
subdivision, the enrollment is effective not later than the first day of the
first calendar month beginning after the date the completed request for
enrollment is received.
(8) (i) A small
employer carrier that makes coverage available under a group health plan with
respect to a dependent of an individual shall provide for a dependent special
enrollment period described in paragraph (d)(8)(ii) of this
subdivision during which the person or, if not otherwise enrolled, the
individual may be enrolled under the group health plan as a dependent of the
individual and, in the case of the birth or adoption of a child, the spouse of
the individual may be enrolled as a dependent of the individual if the spouse
is otherwise eligible for coverage if:
(A) The individual is
a participant under the health benefit plan or has met any waiting period
applicable to becoming a participant under the plan and is eligible to be
enrolled under the plan, but for a failure to enroll during a previous
enrollment period; and
(B) A person becomes
a dependent of the individual through marriage, birth, or adoption or placement
for adoption.
(ii) The special
enrollment period for individuals that meet the provisions of paragraph (d)(8)(i)
of this subdivision is a period of not less than thirty (30) days and
begins on the later of:
(A) The date
dependent coverage is made available; or
(B) The date of the
marriage, birth, or adoption or placement for adoption described in
subparagraph (d)(8)(i)(B) of this subdivision.
(iii) If an
individual seeks to enroll a dependent during the first thirty (30) days of the
dependent special enrollment period described under paragraph (d)(8)(ii)
of this subdivision, the coverage of the dependent is effective:
(A) In the case of
marriage, not later than the first day of the first month beginning after the
date the completed request for enrollment is received;
(B) In the case of a
dependent's birth, as of the date of birth; and
(C) In the case of a
dependent's adoption or placement for adoption, the date of the adoption or
placement for adoption.
(9) (i) Except as
provided in this subdivision, requirements used by a small employer carrier in
determining whether to provide coverage to a small employer, including
requirements for minimum participation of eligible employees and minimum
employer contributions, shall be applied uniformly among all small employers
applying for coverage or receiving coverage from the small employer carrier.
(ii) For health
benefit plans issued or renewed on or after October 1, 2000, a small employer
carrier shall not require a minimum participation level greater than:
(A) One hundred
percent (100%) of eligible employees working for groups of ten (10) or less
employees; and
(B) Seventy-five
percent (75%) of eligible employees working for groups with more than ten (10)
employees.
(iii) In applying minimum
participation requirements with respect to a small employer, a small employer
carrier shall not consider employees or dependents who have creditable coverage
in determining whether the applicable percentage of participation is met.
(iv) A small employer
carrier shall not increase any requirement for minimum employee participation
or modify any requirement for minimum employer contribution applicable to a
small employer at any time after the small employer has been accepted for
coverage.
(10) (i) If a small
employer carrier offers coverage to a small employer, the small employer
carrier shall offer coverage to all of the eligible employees of a small
employer and their dependents who apply for enrollment during the period in
which the employee first becomes eligible to enroll under the terms of the
plan. A small employer carrier shall not offer coverage to only certain
individuals or dependents in a small employer group or to only part of the
group.
(ii) A small employer
carrier shall not place any restriction in regard to any health status-related
factor on an eligible employee or dependent with respect to enrollment or plan
participation.
(iii) Except as
permitted under subdivision (d)(1) and (d)(4) of this
subsection, a small employer carrier shall not modify a health benefit plan
with respect to a small employer or any eligible employee or dependent, through
riders, endorsements, or otherwise, to restrict or exclude coverage or benefits
for specific diseases, medical conditions, or services otherwise covered by the
plan.
(e) (1) Subject to
subdivision (e)(3) of this subsection, a small employer carrier
is not required to offer coverage or accept applications pursuant to subsection
(b) of this section in the case of the following:
(i) To a small employer,
where the small employer does not have eligible individuals who live, work, or
reside in the established geographic service area for the network plan;
(ii) To an employee,
when the employee does not live, work, or reside within the carrier's established
geographic service area; or
(iii) Within an area
where the small employer carrier reasonably anticipates, and demonstrates to
the satisfaction of the director, that it will not have the capacity within its
established geographic service area to deliver services adequately to enrollees
of any additional groups because of its obligations to existing group
policyholders and enrollees.
(2) A small employer
carrier that cannot offer coverage pursuant to paragraph (e)(1)(iii) of
this subsection may not offer coverage in the applicable area to new cases
of employer groups until the later of one hundred and eighty (180) days
following each refusal or the date on which the carrier notifies the director
that it has regained capacity to deliver services to new employer groups.
(3) A small employer
carrier shall apply the provisions of this subsection uniformly to all small
employers without regard to the claims experience of a small employer and its
employees and their dependents or any health status-related factor relating to
the employees and their dependents.
(f) (1) A small
employer carrier is not required to provide coverage to small employers
pursuant to subsection (b) of this section if:
(i) For any period of
time the director determines the small employer carrier does not have the
financial reserves necessary to underwrite additional coverage; and
(ii) The small
employer carrier is applying this subsection uniformly to all small employers in
the small group market in this state consistent with applicable state law and
without regard to the claims experience of a small employer and its employees
and their dependents or any health status-related factor relating to such
the employees and their dependents.
(2) A small employer
carrier that denies coverage in accordance with subdivision (f)(1) of
this subsection may not offer coverage in the small group market for the
later of:
(i) A period of one
hundred and eighty (180) days after the date the coverage is denied; or
(ii) Until the small
employer has demonstrated to the director that it has sufficient financial
reserves to underwrite additional coverage.
(g) (1) A small
employer carrier is not required to provide coverage to small employers
pursuant to subsection (b) of this section if the small employer carrier
elects not to offer new coverage to small employers in this state.
(2) A small employer
carrier that elects not to offer new coverage to small employers under this subsection
may be allowed, as determined by the director, to maintain its existing
policies in this state.
(3) A small
employer carrier that elects not to offer new coverage to small employers under
subdivision (g)(1) shall provide at least one hundred and twenty (120) days
notice of its election to the director and is prohibited from writing new
business in the small employer market in this state for a period of five (5)
years beginning on the date the carrier ceased offering new coverage in this
state.
SECTION 91.
Section 27-51-1 of the General Laws in Chapter 27-51 entitled "Managing
General Agents Act" is hereby amended to read as follows:
27-51-1. Short
title. -- As used in this
chapter, This chapter may be known as the "Managing General Agents
Act".
SECTION 92. Section
27-52-2 of the General Laws in Chapter 27-52 entitled "Reinsurance
Intermediaries" is hereby amended to read as follows:
27-52-2.
Definitions. -- As used in this
chapter:
(1)
"Actuary" means a person who is a member in good standing of the
American academy of actuaries;
(2) "Controlling
person" means any person, firm, association, or corporation who directly
or indirectly has the power to direct or cause to be directed, the management,
control, or activities of the reinsurance intermediary;
(3)
"Insurer" means any person, firm, association, or corporation duly
licensed in this state pursuant to the applicable provisions of the insurance
law as an insurer;
(4) "Licensed
producer" means an agent, broker, or reinsurance intermediary licensed
pursuant to the applicable provisions of this title.
(5) "Qualified
U.S. financial institutions", for the purposes of this chapter, means an
institution that:
(i) Is organized or
in the case of a U.S. office of a foreign banking organization licensed, under
the laws of the United States or any state thereof of the United
States;
(ii) Is regulated,
supervised, and examined by U.S. federal or state authorities having regulatory
authority over banks and trust companies; and
(iii) Has been
determined by either the commissioner, or the securities valuation office of
the national association of insurance commissioners, to meet such the
standards of financial condition and standing as that are
considered necessary and appropriate to regulate the quality of financial
institutions whose letters of credit will be acceptable to the commissioner;
(6) "Reinsurance
intermediary" means a reinsurance intermediary broker or a reinsurance
intermediary manager as these terms are defined in subsections subdivisions
(7) and (8) of this section, but shall not mean an intermediary in an
insurance securitization or reinsurance transaction with a protected cell
established by a protected cell company organized under the Protected Cell
Companies Act, chapter 64 of this title, as those terms are defined or
utilized in this act that Act;
(7) "Reinsurance
intermediary broker" (RB) means any person, other than an officer or
employee of the ceding insurer, firm, association, or corporation who solicits,
negotiates, or places reinsurance cessions or retrocessions on behalf of a
ceding insurer without the authority or power to bind reinsurance on behalf of
the insurer;
(8) "Reinsurance
intermediary manager" (RM) means any person, firm, association, or
corporation who has authority to bind or manages all or part of the assumed
reinsurance business of a reinsurer, including the management of a separate
division, department, or underwriting office, and acts as an agent for the
reinsurer which is known as a RM, manager, or other similar term.
Notwithstanding the above, the following persons shall not be considered a RM,
with respect to the reinsurer, for the purposes of this chapter:
(i) Any employee of
the reinsurer;
(ii) A U.S. manager
of the United States branch of an alien reinsurer;
(iii) An underwriting
manager which, pursuant to contract, manages all the reinsurance operations of
the reinsurer, is under common control with the reinsurer, subject to the
Insurance Holding Company Systems Act, chapter 35 of this title, and whose compensation
is not based on the volume of premiums written;
(iv) The manager of a
group, association, pool, or organization of insurers which engage in joint
underwriting or joint reinsurance and who are subject to examination by the
insurance commissioner of the state in which the manager's principal business
office is located;
(9)
"Reinsurer" means any person, firm, association, or corporation duly
licensed in this state pursuant to the applicable provisions of this title as an
insurer with the authority to assume reinsurance; and
(10) "To be in
violation" means that the reinsurance intermediary, insurer, or reinsurer
for whom the reinsurance intermediary was acting failed to substantially comply
with the provisions of this chapter.
SECTION 93. Section
27-54-3 of the General Laws in Chapter 27-54 entitled "Insurance Fraud
Prevention Act" is hereby amended to read as follows:
27-54-3.
Investigations. -- (a) Pursuant
to §§ 27-13-1 and 27-13.1-1, et seq. chapter 13.1 of this title,
the director or the director's designee may conduct investigations as he or she
deems necessary in order to ascertain whether any person has violated or is
violating any provision of this chapter.
(b) Whenever the
director or the director's designee has reason to believe that a provision of
this chapter has been violated, he or she may report the violation of law to
the attorney general who may bring an action in the court of appropriate
jurisdiction. Within one hundred twenty (120) days of receipt of the director's
deport, the attorney general shall inform the director or the director's
designee as to the status of the reported violations. Where the insurer
affected has become the subject of a court order for conservation,
rehabilitation or liquidation, the director or the director's designee may also
refer the matter to the receiver for action under § 27-54-2.
SECTION 94.
Section 27-65-1 of the General Laws in Chapter 27-65 entitled "Commercial
Special Risks" is hereby amended to read as follows:
27-65-1. Commercial
special risks. -- (a) Commercial
special risks.: Notwithstanding any other provisions of this
title to the contrary and except as below limited in subsection (b)
of this section, insurers shall not be required to file with, nor to
receive approval from, the insurance division of the department of business
regulation for policy forms or rates used in the insurance of commercial
special risks located in this state. Commercial special risks are defined as:
(1) Risks written as
commercial lines insurance, as defined in section § 27-34-5(5),
and which are written on an excess or umbrella basis;
(2) Those risks, or
portions thereof of them, written as commercial lines insurance,
as defined in section § 27-34-5(5), and which are not rated
according to manuals, rating plans, or schedules including "A" rates;
(3) Risks written as
commercial lines insurance which employ or retain the services of a "risk
manager" and which also meet any one of the following criteria:
(i) Net worth over
fifty million dollars ($50,000,000);
(ii) Net
revenue/sales of over one hundred million dollars ($100,000,000);
(iii) More than five
hundred (500) employees per individual company or one thousand (1000) employees
per holding company in the aggregate;
(iv) Aggregates
premiums of over one hundred fifty thousand dollars ($150,000) excluding group
life, group health, workers' compensation and professional liability (including
but not limited to errors and omissions and directors and officers liability);
(v) Is a not for
profit, or public entity with an annual budget or assets of at least forty-five
million dollars ($45,000,000); or
(vi) Is a
municipality with a population of over fifty thousand (50,000);
(4) Specifically
designated commercial special risks including:
(i) All risks
classified as highly protected risks as defined in section 27-5-2.1(4) §
27-5-2.1(a)(4);
(ii) All commercial
insurance aviation risks;
(iii) All credit
property insurance risks which are defined as: "insurance of
personal property of a commercial debtor against loss, with the creditor as
sole beneficiary" or "insurance of personal property of a commercial
debtor, with the creditor as primary beneficiary and the debtor as beneficiary
of proceeds not paid to the creditor". For the purposes of this
definition, "personal property" means furniture, fixtures,
furnishings, appliances and equipment designed for use in a business trade or
profession and not used by a debtor for personal or household use;
(iv) All boiler and
machinery risks;
(v) All inland marine
risks written as commercial lines insurance as defined in section §
27-34-5(5); and
(vi) All fidelity and
surety risks.
(b) Nevertheless
Notwithstanding subsection (a) of this section, the following lines of
business shall remain subject to all filing and approval requirements contained
in this title even if written for risks which otherwise qualify as commercial
special risks:
(1) Life insurance;
(2) Annuities;
(3) Accident and
health insurance;
(4) Automobile insurance
which is mandated by statute;
(5) Workers'
compensation and employers' liability insurance; and
(6) Issuance through
residual market mechanisms.
(c) Any insurer which
provides coverage to a commercial special risk shall disclose to the insured
that forms used and rates charges are exempt from filing and approval
requirements by this subsection. Records of all such disclosures shall be
maintained by the insurer.
(d) Brokers for
exempt commercial policyholders as defined in subdivision (a)(3) herein of
this section shall be exempt from the due diligence requirements of section
§ 27-3-38(b). of the general laws.
SECTION 95. Section
27-66-24 of the General Laws in Chapter 27-66 entitled "The Health
Insurance Conversion Act" is hereby amended to read as follows:
27-66-24. Exceptions - Rehabilitation, liquidation
or conservation. -- No proposed conversion shall be subject to this chapter in the event that
the health insurance corporation, health maintenance corporation, a nonprofit
hospital service corporation, nonprofit medical service corporation or
affiliate or subsidiary thereof of them is subject to an order
from the superior court directing the director to rehabilitate, liquidate or
conserve, as provided in §§ 27-19-28, 27-20-24, 27-41-18, 27-14.1-1 et seq.,
27-14.2-1 et seq., 27-14.3-1 et seq. or 27-14.4-1 et seq or chapter
14.1, 14.2 or 14.3 of this title.
SECTION 96. Section
27-52-13 of the General Laws in Chapter 27-52 entitled "Reinsurance
Intermediaries" is hereby repealed in its entirety.
27-52-13.
Utilization of services. -- No insurer or reinsurer may continue to utilize the services of a
reinsurance intermediary on and after July 1, 1993, unless the utilization is
in compliance with this chapter.
SECTION 97. Section
27-56-4 of the General Laws in Chapter 27-56 entitled "Disclosure of
Material Transactions Act" is hereby repealed in its entirety.
27-56-4. Effective date. -- This chapter shall take effect June 30, 1995.
SECTION 98. Section
5-40.1-13 of the General Laws in Chapter 5-40.1 entitled "Occupational
Therapy" is hereby amended to read as follows:
5-40.1-13. Fees. -- When an application is
submitted to the division of professional regulation for a license to practice
occupational therapy in Rhode Island, the applicant pays shall pay a
non-refundable fee of sixty-two dollars and fifty cents ($62.50) to the general
treasurer. A licensee shall submit a biennial renewal fee of sixty-two
dollars and fifty cents ($62.50) is submitted with a renewal application
on or before the first thirty-first (31st) day of
March of each even year pursuant to the requirements of § 5-40.1-12(a)(3),
and any person who allows his or her license to lapse by failing to renew it in
the manner prescribed pays shall pay an additional fee of
twenty-five dollars ($25.00) as referred to in § 5-40.1-12(a)(6).
SECTION 99. Section
23-17-44 of the General Laws in Chapter 23-17 entitled "Licensing of
Health Care Facilities" is hereby amended to read as follows:
23-17-44. Moratorium on new
initial nursing facility licensed beds and on increases to the licensed
capacity of existing nursing facility licenses. -- (a) The licensing
agency shall issue no new initial licenses for nursing facilities prior to July
1, 2004; provided, however, that:
(1) Any person
holding a previously issued and valid certificate of need as of August 21, 1996
shall be permitted to effect a prior certificate from the licensing agency
consistent with any other statutory and regulatory provisions which may further
apply;
(2) Any person
holding a nursing facility license may undertake activities to construct and
operate a replacement nursing facility with the same or lower bed capacity as
is presently licensed provided that the replacement facility may only be licensed
upon the otherwise unconditional cessation of operation of the previously
licensed nursing facility;
(3) Any certificate
of need application under active review before the state agency as of January
10, 1996, which application seeks approval of a proposal to establish a new
nursing facility or seeks to increase the licensed bed capacity of an existing
nursing facility shall continue to be reviewed under all the statutory and
regulatory requirements in effect at the time the application was accepted for
review by the state agency; and
(4) On July 1, 1999,
if the statewide occupancy rate of licensed nursing facility beds exceeds
ninety-two percent (92%) for the preceding calendar year, as determined by the
department of human services, an assisted living residence licensed pursuant to
chapter 17.4 of this title may propose to seek nursing facility licensure by
conversion of assisted living residence rooms within its existing physical
plant; provided however, that:
(i) The number of
nursing facility beds to be licensed does not exceed the lesser of twenty (20)
beds or ten percent (10%) of the licensed bed capacity of the assisted living
residence;
(ii) The capital
expenditures associated with the implementation of the nursing facility beds
does not exceed five hundred thousand dollars ($500,000);
(iii) The nursing
facility shall be limited in taking residents to those persons who are
transferring from residency at the assisted living residence;
(iv) The assisted
living residence must participate in the Medicaid program;
(v) The application
must be submitted to the health services council on or before October 1, 1999;
(vi) The facility
must comply with all requirements of the Health Care Certificate of Need Act,
chapter 15 of title 23.
(b) Prior to July 1,
2004, the licensing agency shall not increase the licensed bed capacity of any
existing licensed nursing facility, including any nursing facility approved for
change in ownership pursuant to § 23-17-14 §§ 23-17-14.3 and
23-17-14.4, except for the greater of ten (10) beds or ten percent (10%) of
the facility's licensed capacity. Any person holding a previously issued and
valid certificate of need as of the date of passage of this section or who
shall subsequently be granted a certificate of need pursuant to subsection (a)
shall be permitted to effect a prior certificate from the licensing agency
consistent with any other statutory and regulatory provisions which may further
apply.
SECTION 100. Section
40-18-2 of the General Laws in Chapter 40-18 entitled "Long Term Home
Health Care - Alternative to Placement in a Skilled Nursing or Intermediate
Care Facility" is hereby amended to read as follows:
40-18-2. Definitions. -- As used in this
chapter, the following words and phrases shall have the following meanings
unless the context otherwise requires:
(1) “Adult
day care service” means a comprehensive supervised program on a regularly
scheduled basis to adults with disabilities for a substantial part of the day
in a single physical location for a specified number of participants daily. The
adult day care center shall be reviewed and approved by the department of
elderly affairs or other appropriate state agency. Adult day care services may
include, but are not limited to, medical supervision, social and educational
activities, snacks and/or hot lunch, and transportation to and from the day
care site. All adult day care services must meet the conditions set forth in
the rules and regulations of the department of elderly affairs and must provide
these services as an alternative to twenty-four (24) hour long term
institutional care.
(2) “Case management
services” means the coordination of a plan of care and services provided at
home to persons with disabilities who are medically eligible for placement in a
skilled nursing facility or an intermediate care facility upon discharge from a
hospital. Such programs shall be provided in the person's home or in the home
of a responsible relative or other responsible adult, but not provided in a
skilled nursing facility and/or an intermediate care facility.
(3) “Certified home
health” means a home care services agency which is licensed by the state and
which is qualified to participate as home health agency under the provisions of
titles XVII and XIX of the federal Social Security Act, 42 U.S.C. § 1395x, and
shall provide, directly or through contract arrangement, a minimum of the
following services, which are of a preventative, therapeutic, rehabilitative
health guidance, and/or supportive nature to persons at home: skilled nursing
services, physical therapy, occupational therapy, speech therapy, and home
health aide services.
(4) “Director” means
the director of the department of human services.
(5) “Emergency
response system” means a twenty-four (24) hour per day monitoring service
designed for use by elderly adults in the community. The purpose of that system
is to provide contact between the elderly adult in the community and the
appropriate emergency response agency.
(6) “Government
funds” means funds provided under the provisions of chapter 8 of title 40.
(7) “Home care
services” means those services provided by (i) Medicare/Medicaid certified and
state licensed home health agency and (ii) state licensed home health
aide/homemaker agency.
(8) “Home health
aide/homemaker agency”, defined in § 23-17.7-2, means: (i) home health
aide services, at a minimum, includes assistance with personal hygiene,
dressing, feeding, and household tasks essential to the patient's health and
(ii) homemaker services, at a minimum, includes light work or household tasks
such as cooking, cleaning, shopping, and laundry.
(9) “Hospital” means
a hospital as defined in chapter 17 of title 23.
SECTION 101. Section
42-66.4-2 of the General Laws in Chapter 42-66.4 entitled "Long-Term Care
- Removal From a Skilled Nursing and/or Intermediate Care Facility" is
hereby amended to read as follows:
42-66.4-2. Definitions. -- As used in this
chapter, unless the context otherwise requires:
(1) “Adult day
care services” means a comprehensive supervised program on a regularly
scheduled basis to adults with disabilities for a substantial part of the day
in a single physical location for a specified number of participants daily. The
adult day care center shall be reviewed and approved by the department of
elderly affairs or other appropriate state agency. Adult day care services may
include, but are not limited to, medical supervision, social and educational
activities, snacks and/or hot lunch, and transportation to and from the day
care site. All adult day care services must meet the conditions set forth in
the rules and regulations of the department of elderly affairs and must provide
these services as an alternative to twenty-four (24) hour long term institutional
care.
(2) “Case management
services” means the coordination of a plan of care and services provided at
home to persons with disabilities who are medically eligible for placement in a
skilled nursing facility or an intermediate care facility. These programs shall
be provided in the person's home or in the home of a responsible relative or
other responsible adult, but not provided in a skilled nursing facility and/or
an intermediate care facility.
(3) “Certified home
health” means a home care services agency which is licensed by the state and
which is qualified to participate as a home health agency under the provisions
of 42 U.S.C. § 1395 et seq. and § 1396 et seq., and shall provide, directly or
through contract arrangement, a minimum of the following services which are of
a preventative, therapeutic, rehabilitative health guidance and/or supportive
nature to persons at home: skilled nursing services, physical therapy,
occupational therapy, speech therapy, and home health aide services.
(4) “Director” means
the director of the department of elderly affairs unless the context clearly
requires a different meaning.
(5) “Emergency
response system” means a twenty-four (24) hour per day monitoring service
designed for use by elderly adults in the community. The purpose of the system
is to provide contact between the elderly adult in the community and the
appropriate emergency response agency.
(6) “Government
funds” means funds provided under the provisions of chapter 8 of title 40.
(7) “Home care services”
means those services provided by (a) medicare/medicaid certified and state
licensed home health agency and (b) state licensed home health aide/homemaker
agency.
(8) “Home health
aide/homemaker agency”, defined in § 23-17.7-2, means:
(i) Home health aide
services, at a minimum, includes assistance with personal hygiene, dressing,
feeding, and household tasks essential to the patient's health; and
(ii) Homemaker
services, at a minimum, includes light work or household tasks such as cooking,
cleaning, shopping, and laundry.
(9) “Skilled nursing
facility” and “intermediate care facility” shall have the same definition as
set forth in chapter 17 of title 23
SECTION 102. Section
24-10-17 of the General Laws in Chapter 24-10 entitled "Freeways" is
hereby amended to read as follows:
24-10-17. Soliciting rides in motor vehicles. -- (a) Any person who endeavors by words, gestures, or otherwise to beg,
invite, or secure transportation in any motor vehicle on any freeway within the
state, except in the case of a bona fide emergency or in the case of sickness,
shall be guilty of a misdemeanor and shall be punished by a fine of not more
than fifteen dollars ($15.00) fifty dollars ($50.00.
(b)
Any person who endeavors to solicit a ride in a motor vehicle in the manner
described in this section on the travelled portion of any other public highway
in this state shall be guilty of a misdemeanor and shall be punished by a fine
of not more than fifteen dollars ($15.00) fifty dollars
($50.00).
SECTION
103. Sections 31-3-12, 31-3-32, 31-3-34, 31-3-35 and 31-3-40 of the General
Laws in Chapter 31-3 entitled "Registration of Vehicles" are hereby
amended to read as follows:
31-3-12. Visibility of plates. -- Each registration plate and the required letters and numerals printed on
it, except the year number for which issued, shall be of sufficient size to be
plainly readable from a distance of one hundred feet (100') during daylight. Violations
of this section are subject to fines enumerated in §31-41.1-4 of the general
laws.
31-3-32. Expiration of registration. -- Every vehicle registration under chapters 3 - 9 of this title and every
registration card and registration plate issued under these chapters shall
expire at midnight on the thirty-first (31st) day of March of each year, except
that the director of the department of administration, division of motor
vehicles shall implement a staggered registration system and a staggered
distribution system for fully reflective plates required to be on all vehicles
pursuant to § 31-3-10. Implementation of the staggered registration system and
distribution system shall be by rules and regulations promulgated by the
director of administration, division of motor vehicles. A fee for the initial
issuance of fully reflective plates and each reissuance thereafter shall be
charged in accordance with § 31-6-1(22). The requirements for the reissuance of
fully reflective plates apply only to those standard plates described in §
31-3-11 and not to plates authorized by any other section of the general or
public laws. Violations of this section are subject to fines enumerated in
§31-41.1-4 of the general laws.
31-3-34. Notice of change of address. -- A person who applies for or obtains registration for a vehicle, and
subsequently moves from the address given in the application or shown on a
registration card, must notify the division in writing of the old and new
addresses within ten (10) days. Violations of this section are subject to
fines enumerated in §31-41.1-4 of the general laws.
31-3-35. Notice of change of name. -- A person who applies for or obtains registration for a vehicle, and
subsequently changes his or her name because of marriage or otherwise, must
notify the division of the former and new names within ten (10) days. Violations
of this section are subject to fines enumerated in §31-41.1-4 of the general
laws.
31-3-40. Special use identification tags. -- (a) A new car dealer or used car dealer may apply to the administrator
for special use identification tags for display on vehicles that have been sold
by that dealer but for which registration is pending. All vehicles displaying
special use tags must conform to general safety standards. These tags shall be
of a size and type determined by the administrator, and shall be sold to
dealers in packs of ten (10) plates per pack for two hundred dollars ($200) per
pack.
(b) Special use
certificates and special use identification tags may be used on a vehicle sold
by the dealer to a resident or nonresident. The special use certificate and
tags are valid for no more than twenty (20) days, including the date of
delivery of the certificate and tags by the dealer. No dealer or any other
person may extend their expiration date, nor may any person other than the
administrator issue another similar certificate or tag. The special use
certificate must be carried in the vehicle bearing the special use
identification tags whenever the vehicle is being operated on a public highway.
The tags will be displayed in the same manner as registration plates. Upon the
removal of special use identification tags from a vehicle, they must be
destroyed immediately by the person to whom issued or his or her agent.
(c) Upon the issuance
of a special use certificate and special use identification tags, the dealer
shall prepare the certificate in triplicate by printing or typing all of the
information required. The dealer shall imprint the date of the tag's expiration
on the tag itself. This date will be legible, printed in black ink with a
rubber date stamp, in letters and numerals not less than one inch (1”) in
height, nor less than one-fourth of an inch (1/4”) in width. The tag must also
contain the vehicle identification number of the car on which it is displayed,
and the dealer's identification number. The original copy of the special use
certificate shall be given to the person named in the certificate. The
duplicate copy serves as the notice required by subsection (d) of this section.
The third copy shall be held in the dealer's files and shall be exhibited upon
demand of the administrator or of any peace officer.
(d) Notice of
delivery of the special use certificate and special use identification tags
must be mailed to the administrator not later than the next business day.
(e) In the event that
a dealer goes out of business, or transfers his or her business to any other
person, firm, or corporation the dealer must return all special use
certificates and special use identification tags to the administrator within
five (5) days.
(f) No dealer may
make any use of special use certificates or special use identification tags
except in accordance with the provisions of this section.
(g) Violations of this section are subject to fines enumerated in §31-41.1-4
of the general laws.
SECTION 104. Section 31-4-3 of the General Laws in Chapter 31-4 entitled
"Transfer of Vehicles" is hereby amended to read as follows:
31-4-3. Temporary registration - Invoice voucher issued
by dealer. -- (a) Any person who purchases a motor vehicle
from a bona fide licensed dealer, and who already has a motor vehicle
registered in this state, may operate the newly acquired motor vehicle for a
period of twenty (20) days following the date of the original dated voucher.
The new vehicle must be of the same type as that already owned and registered
vehicle. During this period any operator of the new vehicle must carry the
original dated bill of sale or invoice voucher, which must be accompanied by a
numbered state sales tax form. The voucher or bill of sale shall give the
registration number to be transferred from the previously registered to the
newly acquired vehicle.
(b) The bill of sale
or invoice voucher shall be sequentially and numerically identified, dated on
the day of sale, and is valid for not more than twenty (20) days following the
date of the original voucher. No dealer or any other person may extend or alter
the date, nor may a new bill of sale be issued to the purchaser as a means to
circumvent this section.
(c) Every dealer
shall keep a sequential record of each temporary certificate issued, and those
records shall be available during business hours for examination by any police
officer or inspector of the division as designated by the administrator of the
division of motor vehicles.
(d) Violations of this section are subject to fines enumerated in
§31-41.1-4 of the general laws.
SECTION 105. Sections 31-10.1-4, 31-10.1-5, 31-10.1-6, and 31-10.1-7 of
the General Laws in Chapter 31-10.1 entitled "Special License for Motorcycles,
Motor Scooters, and Other Motor Driven Cycles" are hereby amended to read
as follows:
31-10.1-4. Required equipment. -- Operators of motorcycles, motor scooters, and motor-driven cycles shall
use eye protection of a type approved by the administrator when operating their
vehicles on streets and highways. Every motorcycle, motor scooter, and
motor-driven cycle shall be equipped with a rear view mirror. Any operator
under the age of twenty-one (21) shall wear a helmet of a type approved by the
administrator. In addition, all new operators, regardless of age, shall be
required, for a period of one year from the date of issuance of the first
license pursuant to § 31-10.1-1, to wear a helmet of a type approved by the
administrator. Any person violating this provision shall be fined thirty-five
dollars ($35.00) fifty dollars ($50.00) which shall be paid in
accordance with chapter 41.1 of this title. The administrator is authorized to
set forth rules and regulations governing the use of other equipment on these
vehicles. All fines collected under this section shall be deposited in a
general restricted receipt account for the use of the Rhode Island governor's
office on highway safety in order to promote educational and informational
programs encouraging helmet use.
31-10.1-5. Handlebars. -- No person shall
operate on a highway or in any parking area for ten (10) or more motor
vehicles, any motorcycle, motor scooter, or motor-driven cycle equipped with
handlebars that are more than fifteen inches (15”) in height above the
uppermost portion of the seat when depressed by the weight of the operator. Violations
of this section are subject to fines enumerated in §31-41.1-4 of the general
laws.
31-10.1-6. Passengers. -- Any passenger on a
motorcycle, motor scooter, or motor-driven cycle must be provided with a
separate rear seat, a separate foot-rest, and an appropriate handlebar or grip
for his or her use, and must wear a properly fitting helmet of a type approved
by the administrator. No person shall operate a motorcycle, motor scooter, or
motor-driven cycle unless any passenger wears a helmet and also unless any
passenger is able to rest his or her feet upon a foot rest; provided further
that any passenger on a motorcycle, motor scooter, or motordriven cycle under
twelve (12) years of age must have a properly secured back-rest or equivalent
and shall have his or her feet placed upon the foot-rest and shall be seated
behind the operator unless a side car is provided. When, however, a side car is
provided this age requirement shall not apply to passenger(s) in the side car. Violations
of this section are subject to fines enumerated in §31-41.1-4 of the general
laws.
31-10.1-7. Inspection -- Every motorcycle, motor
scooter, or motor-driven cycle shall be inspected in accordance with the law
providing for inspection of motor vehicles, and shall display a certificate of
inspection as provided in chapter 38 of this title. Inspection standards for
these motor vehicles shall be established by the administrator. Inspection
stations shall be specially licensed to inspect motorcycles, motor scooters,
and motor-driven cycles. Certificates of inspection for these vehicles shall be
clearly distinguishable from those issued to other motor vehicles. Violations
of this section are subject to fines enumerated in §31-41.1-4 of the general
laws.
SECTION 106. Sections
31-10-10, 31-10-30, and 31-10-32 of the General Laws in Chapter 31-10 entitled
"Operators' and Chauffeurs' Licenses" are hereby amended to read as
follows:
31-10-10. Rules as to armed forces license. -- The special license provided for in §§ 31-10-8 and 31-10-9, shall be
issued under the rules and in the form the administrator may prescribe. Violations
of this section are subject to fines enumerated in §31-41.1-4 of the general
laws.
31-10-30. Expiration and renewal of licenses. -- Every operator's and chauffeur's first license to operate a motor vehicle
shall be by the issuance of a temporary license for the period beginning at the
date of issuance and expiring on the birthday of the licensee in the second
year following the issuance of the temporary license. Every operator's and
chauffeur's license issued after expiration of the temporary license shall
expire on the birthday of the licensee in the fifth year following the issuance
of the license, with the exception of any person seventy (70) years of age or
older whose license shall expire on the birthday of the licensee in the second
year following the issuance of the license, and shall be renewable on or before
expiration upon application and payment of the fee required by this chapter.
The administrator of the division of motor vehicles, having good cause to
believe the applicant for renewal is incompetent or otherwise not qualified,
may require an examination of the applicant as upon an original application.
The administrator of the division of motor vehicles is authorized to adopt any
regulations necessary to carry out the purposes of this section. Violations
of this section are subject to fines enumerated in §31-41.1-4 of the general
laws.
31-10-32. Notice of change of address or name. -- If, after applying for or receiving an operator's or chauffeur's license,
a person moves from the address shown on the application or license, or when
the name of a licensee is changed by marriage or otherwise, that person within
ten (10) days shall notify the division in writing of both old and new
addresses or of both former and new names and of the designating number of any
license then held. Violations of this section are subject to fines
enumerated in §31-41.1-4 of the general laws.
SECTION 107. Section
31-12-12 of the General Laws in Chapter 31-12 entitled "Applicability of
Traffic Regulations" is hereby amended to read as follows:
31-12-12. Powers of local authorities. -- Chapters 12 - 27 of this title shall not be deemed to prevent local
authorities with respect to streets and highways under their jurisdiction and
within the reasonable exercise of the police power from:
(1) Regulating the
standing or parking of vehicles;
(2) Regulating
traffic by means of police officers or traffic control signals;
(3) Regulating or
prohibiting processions or assemblages on the highways;
(4) Designating
particular highways as one-way highways and requiring that all vehicles on them
be moved in one specific direction;
(5) Regulating the
speed of vehicles in public parks;
(6) Designating any
highway as a through highway and requiring that all vehicles stop before
entering or crossing the same, or designating any intersection as a stop
intersection and requiring all vehicles to stop at one or more entrances to the
stop intersection;
(7) Restricting the
use of highways as authorized in §§ 31-25-25 and 31-25-26;
(8) Regulating the
operation of bicycles and requiring the registration and licensing of the
these, including the requirement of a registration fee;
(9) Regulating or
prohibiting the turning of vehicles or specified types of vehicles at
intersections;
(10) Altering the
prima facie speed limits as authorized by these chapters;
(11) Adopting any
other traffic regulations specifically authorized by chapters 12 - 27 of this
title;
(12) The city council of the city of Woonsocket is authorized and
empowered to enact ordinances providing that the chief of police, or the police
officers that he or she may from time to time designate, may impound, by means
of a 'Denver boot,' so-called, or other immobilization device, or cause to be
impounded, through the agency of a person or persons in the employ of the city
of Woonsocket or the police department, or by independent contractor, any
vehicle parked or standing on any part of any way under the control of the
city, if in the calendar year in which the vehicle is impounded and in the
preceding calendar year, the aggregate of five or more notices of violation of
any ordinances adopted for the regulation of parking of motor vehicles (whether
adopted prior to or date on which the vehicle was impounded, the location at
which it was impounded, and a statement that it will be released on the payment
of all fines and charges lawfully imposed for the impoundment. If, after thirty
(30) days of mailing of the notice to the registered owner as provided for in
this section, the owner has not paid all fines and charges imposed for the
impounding, the impounded vehicle shall be deemed to have been abandoned and
may be disposed of in accordance with §§ 31-22-14, 31-22-15, 31-22-17 and
31-22-18, first applying the proceeds to pay all fines and charges imposed for
the impoundment. Vehicles owned by the state or a political subdivision of it
or by the United States or any instrumentality of it or registered by a member
of a foreign diplomatic corps or by a foreign consular officer who is a citizen
of the United States and bearing a distinctive number plate or otherwise
conspicuously marked as, so owned or registered, and vehicles and persons
described in §§ 31-28-4, 31-28-6 and 31-28-7, shall not, however, be subject to
impoundment. Violations of this section are subject to fines enumerated in
§31-41.1-4 of the general laws.
SECTION 108. Sections 31-13-4, 31-13-6, 31-13-9, and 31-13-11 of the
General Laws in Chapter 31-13 entitled "Traffic Control Devices" are
hereby amended to read as follows:
31-13-4. Obedience to devices. -- The driver of any vehicle shall obey the instructions of any official
traffic-control device applicable to him or her placed in accordance with
chapters 12 - 27 of this title, unless otherwise directed by a traffic or
police officer, subject to the exceptions granted the driver of an authorized
emergency vehicle in these chapters. Violations of this section are subject
to fines enumerated in §31-41.1-4 of the general laws.
31-13-6. Specifications and meaning of
traffic lights.-- Whenever
traffic is controlled by traffic control signals exhibiting the words “go”,
“caution”, or “stop”, or exhibiting different colored lights successively one
at a time, or with arrows, the following colors only shall be used, and the
terms and lights shall indicate and apply to drivers of vehicles and
pedestrians as follows:
(1) Green alone or
"go".
(i) Vehicular traffic
facing the signal may proceed straight through or turn right or left unless a
sign at the place prohibits either a right or left turn. But vehicular traffic,
including vehicles turning right or left, shall yield the right-of-way to other
vehicles and to pedestrians lawfully within the intersection or an adjacent
crosswalk at the time the signal is exhibited.
(ii) Pedestrians facing
the signal may proceed across the roadway within any marked or unmarked
crosswalk.
(2) Yellow alone or
"caution" when shown following the green or "go" signal.
(i) Vehicular traffic
facing the signal is warned that the red or “stop” signal will be exhibited
immediately after, and the vehicular traffic shall not enter or be crossing the
intersection when the red or “stop” signal is exhibited.
(ii) Pedestrians
facing the signal are advised by it that there is insufficient time to cross
the roadway, and any pedestrian then starting to cross shall yield the
right-of-way to all vehicles.
(3) Red alone or "stop".
(i) Vehicular traffic facing the signal shall stop before entering the
crosswalk on the near side of the intersection or, if none, then before
entering the intersection, and shall remain standing until the green or 'go' is
shown alone, and shall not, prior to reaching the intersection, make any turn
over or through private property in order to avoid the signal, provided, a
right hand turn shall be permitted after vehicular traffic reaches a complete
stop, at intersections when safety would permit a turn and no sign forbids it. Violations of this section are subject to fines enumerated in §31-41.1-4
of the general laws.
(ii) No
pedestrian facing the signal shall enter the roadway unless he or she can do so
safely and without interfering with any vehicular traffic.
(4) Red with green
arrow.
(i) Vehicular traffic
facing the signal may cautiously enter the intersection only to make the
movement indicated by the arrow, but shall yield the right-of-way to
pedestrians lawfully within a crosswalk and to other traffic lawfully using the
intersection.
(ii) No pedestrian
facing the signal shall enter the roadway unless he or she can do so safely and
without interfering with any vehicular traffic.
31-13-9. Flashing signals. -- Whenever an
illuminated flashing red or yellow signal is used in a traffic sign or signal
it shall require obedience by vehicular traffic as follows:
(1)
Flashing red (stop signal). When a red lens is illuminated with rapid
intermittent flashes, drivers of vehicles shall stop before entering the
nearest crosswalk at an intersection or at a limit line when marked, or, if
none, then before entering the intersection, and the right to proceed shall be
subject to the rules applicable after making a stop at a stop sign.
(2) Flashing yellow
(caution signal). When a yellow lens is illuminated with rapid intermittent
flashes, drivers of vehicles may proceed through the intersection or past the
signal only with caution.
(3) Flashing green
(pedestrian signal). When a green lens is illuminated with rapid intermittent
flashes, drivers of vehicles may proceed through the intersection or crosswalk
past the signal only with caution.
Violations of this section are subject to fines enumerated in §31-41.1-4
of the general laws.
31-13-11. Injury to signs and devices prohibited. -- No person shall without lawful authority attempt to or in fact alter, deface,
injure, knock down, or remove any official traffic-control device or any
railroad sign or signal or any inscription, shield, or insignia on it, or any
other part of it. Violations of this section are subject to fines enumerated
in §31-41.1-4 of the general laws.
SECTION 109.
Sections 31-14-1, 31-14-3, 31-14-9, and 31-14-12 of the General Laws in Chapter
31-14 entitled "Speed Restrictions" are hereby amended to read as
follows:
31-14-1. Reasonable and prudent speeds. -- No person shall drive a vehicle on a highway at a speed greater than is
reasonable and prudent under the conditions and having regard to the actual and
potential hazards then existing. In every event, speed shall be controlled as
may be necessary to avoid colliding with any person, vehicle, or other
conveyance on or entering the highway in compliance with legal requirements and
the duty of all persons to use due care. Violations of this section are
subject to fines enumerated in §31-41.1-4 of the general laws.
31-14-3. Conditions requiring reduced speed.
-- The driver of every vehicle
shall, consistent with the requirements of § 31-14-1, drive at an appropriate
reduced speed when approaching and crossing an intersection or railroad-grade
crossing, when approaching and going around a curve, when approaching a hill
crest, when traveling upon any narrow or winding roadway, and when special
hazard exists with respect to pedestrians or other traffic, or by reason of
weather or highway conditions. Violations of this section are subject to fines
enumerated in §31-41.1-4 of the general laws.
31-14-9. Minimum speed. -- (a) No person shall
drive a motor vehicle at such a slow speed as to impede or block the normal and
reasonable movement of traffic except when reduced speed is necessary for safe
operation or in compliance with law.
(b) Police officers are authorized to enforce this provision by
directions to drivers, and in the event of apparent willful disobedience to
this provision and refusal to comply with direction of an officer in accordance
herewith, the continued slow operation by a driver shall be a civil violation
and is subject to fines enumerated in §31-41.1-4 of the general laws.
31-14-12. Speed limits on bridges and structures. -- (a) No person shall drive a vehicle over any bridge or other elevated
structure constituting a part of a highway at a speed which is greater than the
maximum speed which can be maintained with safety to the bridge or structure,
when the structure is sign-posted as provided in this section.
(b) The
state traffic commission upon request from any local authority shall, or upon
its own initiative may, conduct an investigation of any bridge or other
elevated structure constituting a part of a highway. If it finds that the
structure cannot with safety to itself withstand vehicles traveling at the
speed otherwise permissible under this chapter, the commission shall determine
and declare the maximum speed of vehicles which the structure can withstand,
and shall cause or permit suitable signs stating the maximum speed to be
erected and maintained at a distance of one hundred feet (100') before each end
of the structure.
(c) Upon the trial of
any person charged with a violation of this section, proof of the determination
of the maximum speed by the commission and the existence of the signs shall
constitute conclusive evidence of the maximum speed which can be maintained
with safety to the bridge or structure.
(d) Violations of this section are subject to fines enumerated in
§31-41.1-4 of the general laws.
SECTION 110. Sections 31-15-1, 31-15-2, 31-15-3, 31-15-4, 31-15-5,
31-15-6, 31-15-7, 31-15-8, 31-15-9, 31-15-10, 31-15-11, 31-15-12, 31-15-12.1,
31-15-13, 31-15-14, and 31-15-16 of the General Laws in Chapter 31-15 entitled
"Passing, Use of Lanes, and Rules of the Road" are hereby amended to
read as follows:
31-15-1. Right half of road. -- Upon all roadways of
sufficient width a vehicle shall be driven upon the right half of the roadway,
except as follows:
(1) When overtaking and passing another
vehicle proceeding in the same direction under the rules governing this
movement;
(2) When the right half of a roadway is
closed to traffic while under construction or repair;
(3) Upon a roadway divided into three (3)
marked lanes for traffic under the rules applicable thereon; or
(4) Upon a roadway designated and sign-posted
for one-way traffic.
Violations of
this section are subject to fines enumerated in §31-41.1-4 of the general laws.
31-15-2. Slow traffic to right. -- Upon all roadways, any vehicle proceeding at less than the normal
speed of traffic at the time and place and under the conditions then existing
shall be driven in the right-hand lane then available for traffic, or as close
as practicable to the right-hand curb or edge of the roadway, except when
overtaking and passing another vehicle proceeding in the same direction or when
preparing for a left turn at an intersection or into a private road or
driveway. Violations of this section are subject to fines enumerated in
§31-41.1-4 of the general laws.
31-15-3. Passing of vehicles proceeding in opposite
directions. -- Drivers of vehicles proceeding in opposite
directions shall pass each other to the right, and upon roadways having a width
for not more than one line of traffic in each direction, each driver shall give
to the other as nearly as possible at least one-half of the main traveled
portion of the roadway. Violations of this section are subject to fines
enumerated in §31-41.1-4 of the general laws.
31-15-4. Overtaking on left. -- The following rules
shall govern the overtaking and passing of vehicles proceeding in the same
direction, subject to those limitations, exceptions, and special rules stated
in this section:
(1) The driver of a
vehicle overtaking another vehicle proceeding in the same direction shall give
a timely, audible signal and shall pass to the left at a safe distance and
shall not again drive to the right side of the roadway until safely clear of
the overtaken vehicle.
(2) Except when overtaking and passing on the right is permitted, the
driver of the front vehicle on the audible signal of the overtaking vehicle
shall give way to the right, and shall not increase speed until completely
passed by the overtaking vehicle. Violations of this section are subject to
fines enumerated in §31-41.1-4 of the general laws.
31-15-5. Overtaking on the right. -- (a) The driver of a vehicle may overtake and pass upon the right of
another vehicle only under the following conditions:
(1) When the vehicle
overtaken is making or about to make a left turn;
(2) Upon a one-way street, or upon any roadway on which traffic is
restricted to one direction of movement, where the roadway is free from
obstructions and of sufficient width for two (2) or more lines of moving
vehicles. Violations of this section are subject to
fines enumerated in §31-41.1-4 of the general laws.
(b)
The driver of a vehicle may overtake and pass another vehicle upon the right
only under conditions permitting this movement in safety. In no event shall
this movement be made by driving off the pavement or main-traveled portion of
the roadway.
31-15-6. Clearance for overtaking. -- No vehicle shall be driven to the left side of the center of the roadway
in overtaking and passing another vehicle proceeding in the same direction,
unless the left side is clearly visible and is free of oncoming traffic for a
sufficient distance ahead to permit the overtaking and passing to be completely
made without interfering with the safe operation of any vehicle approaching
from the opposite direction or any vehicle overtaken. In every event the
overtaking vehicle must return to the right-hand side of the roadway before
coming within one hundred feet (100') of any vehicle approaching from the
opposite direction. Violations of this section are subject to fines
enumerated in §31-41.1-4 of the general laws.
31-15-7. Places where overtaking prohibited.
-- (a) No vehicle shall at any time
be driven to the left side of the roadway under the following conditions:
(1) When
approaching the crest of a grade or upon a curve in the highway where the
driver's view is obstructed within such distance as to create a hazard in the
event another vehicle might approach from the opposite direction;
(2) When approaching
within one hundred feet (100') of or traversing any intersection or railroad
grade crossing;
(3) When the view is
obstructed upon approaching within one hundred feet (100') of any bridge,
viaduct, or tunnel.
(b) These limitations
shall not apply upon a one-way roadway.
Violations of
this section are subject to fines enumerated in §31-41.1-4 of the general laws.
31-15-8. Posting of no passing zones. -- The state traffic commission is authorized to determine those portions of
any highway where overtaking and passing or driving to the left of the roadway
would be especially hazardous, and may by appropriate signs or markings on the
roadway indicate the beginning and end of the zones. When the signs or markings
are in place and clearly visible to an ordinarily observant person, every
driver of a vehicle shall obey the directions given by them. Violations of
this section are subject to fines enumerated in §31-41.1-4 of the general laws.
31-15-9. One way highways. -- (a) The state traffic
commission may designate any highway or any separate roadway under its
jurisdiction for one-way traffic, and shall erect appropriate signs giving
notice of that designation.
(b) Upon a
roadway designated and sign-posted for one-way traffic a vehicle shall be
driven only in the direction designated.
Violations of this section are subject to fines enumerated in §31-41.1-4
of the general laws.
31-15-10. Rotary traffic islands. -- A vehicle passing around a rotary traffic island shall be driven only to
the right of the island. Violations of this section are subject to fines
enumerated in §31-41.1-4 of the general laws.
31-15-11. Laned roadways. -- Whenever any roadway
has been divided into two (2) or more clearly marked lanes for traffic, the
following rules in addition to all others consistent with them shall apply:
(1) A vehicle shall
be driven as nearly as practical entirely within a single lane and shall not be
moved from the lane until the driver has first ascertained that the movement
can be made with safety.
(2) Upon a roadway which
is divided into three (3) lanes, a vehicle shall not be driven in the center
lane except when overtaking and passing another vehicle where the roadway is
clearly visible and the center lane is clear of traffic within a safe distance,
or in preparation for a left turn or where the center lane is at the time
allocated exclusively to traffic moving in the direction the vehicle is
proceeding and is sign-posted to give notice of the allocation.
(3) Official signs
may be erected directing slow-moving traffic to use a designated lane or
designating those lanes to be used by traffic moving in a particular direction
regardless of the center of the roadway, and drivers of vehicles shall obey the
directions of the sign.
Violations of this section are subject to fines enumerated in §31-41.1-4
of the general laws.
31-15-12. Interval between vehicles. -- The driver of a motor vehicle shall not follow another vehicle more
closely than is reasonable and prudent, having due regard for the speed of the
vehicles and the traffic upon and the condition of the highway, and shall,
whenever traveling through a business or residential district, and whenever
traffic permits, leave sufficient space so that an overtaking vehicle may enter
and occupy the space without danger. This provision does not apply to a caravan
under police escort or a funeral procession. Violations of this section are
subject to fines enumerated in §31-41.1-4 of the general laws.
31-15-12.1. Entering intersections. -- The driver of a motor vehicle shall not enter an intersection whether or
not any traffic signal is green unless there is sufficient space in the roadway
he or she is about to enter beyond the intersection to receive that vehicle
without blocking the intersection. Violations of this section are subject to
fines enumerated in §31-41.1-4 of the general laws.
31-15-13. Divided highways. -- Whenever any highway has been divided into
two (2) roadways by leaving an intervening space or by a physical barrier or
clearly indicated dividing section so constructed as to impede vehicular
traffic, every vehicle shall be driven only upon the right-hand roadway and no
vehicle shall be driven over, across, or within a dividing space, barrier, or
section, except through an opening in the physical barrier or dividing section
or space or at a crossover or intersection established and permitted by public
authority. Violations of this section are subject to fines enumerated in
§31-41.1-4 of the general laws.
31-15-14. Entry or leaving of limited-access
roadways. -- No person
shall drive a vehicle onto or from any limited-access roadway except at those
entrances and exits established by public authority. Violations of this
section are subject to fines enumerated in §31-41.1-4 of the general laws.
31-15-16. Use of emergency break-down lane for travel. -- No person shall operate a motor vehicle for travel in the emergency
break-down lane of any highway. Violations of this section are subject to
fines enumerated in §31-41.1-4 of the general laws.
SECTION
111. Sections 31-16-1, 31-16-2, 31-16-3, 31-16-4, 31-16-5, 31-16-6, 31-16-7 and
31-16-8 of the General Laws in Chapter 31-16 entitled "Starting, Stopping,
and Turns" are hereby amended to read as follows:
31-16-1. Care in starting from stop. -- No person shall start a vehicle which is stopped, standing, or parked
unless and until this movement can be made with reasonable safety. Violations
of this section are subject to fines enumerated in §31-41.1-4 of the general
laws.
31-16-2. Manner of turning at intersection; pedestrian
right-of-way with turning vehicles.
--(a) The driver of a vehicle
intending to turn at an intersection shall do so as follows:
(1) Right
turns. Both the approach for a right turn and a right turn shall be made as
close as practicable to the right-hand curb or edge of the roadway.
(2) Left turns on
two-way roadways. At any intersection where traffic is permitted to move in
both directions on each roadway entering the intersections, an approach for a
left turn shall be made in that portion of the right half of the roadway
nearest the center line and by passing to the right of the center line where it
enters the intersection, and, after entering the intersection, the left turn
shall be made so as to leave the intersection to the right of the center line
of the roadway being entered. Whenever practicable the left turn shall be made
in that portion of the intersection to the left of the center of the
intersection.
(3) Left turns on
other than two-way roadways. At any intersection where traffic is restrictd to
one direction on one or more of the roadways, the driver of a vehicle intending
to turn left at an intersection shall approach the intersection in the extreme
left-hand lane lawfully availabe to traffic moving in the direction of travel
of the vehicle, and, after entering the intersection, the left turn shall be
made so as to leave the interection, as nearly as practicable, in the left-hand
lane lawfuly aailable to traffic moving in the direction upon the roadway being
entered.
(b) Pedestrians
intending to cross a lane of traffic which is required to stop or yield by a
red traffic light, stop or yield sign or other traffic-control device shall be
granted the right-of-way.
(c) Violations of this section are subject to fines enumerated in
§31-41.1-4 of the general laws.
31-16-3. Marking of turn-paths at particular intersections. -- (a) Local authorities in their respective jurisdictions may cause
markers, buttons, or signs to be placed within or adjacent to intersections,
and require and direct that a different course from that specified in § 31-16-2
be traveled by vehicles turning at an intersection, and when markers, buttons,
or signs are placed, no driver of a vehicle shall turn a vehicle at an
intersection other than as directed and required by the markers, buttons, or
signs.
(b) In view of the
fact that there are many intersections, including T-intersections, where large
numbers of vehicles turn left, local authorities and traffic officers should
permit and direct vehicles to turn left in two (2) lines at these
intersections.
(c) Violations of this section are subject to fines enumerated in
§31-41.1-4 of the general laws.
31-16-4. Places where U-turns prohibited. -- No vehicle shall be turned so as to proceed in the opposite direction
upon any curve or upon the approach to, or near the crest of a grade, where the
vehicle cannot be seen by the driver of any other vehicle approaching from
either direction within five hundred feet (500'). Violations of this section
are subject to fines enumerated in §31-41.1-4 of the general laws.
31-16-5. Turn signal required. -- No person shall turn a vehicle at an intersection unless the vehicle is
in proper position upon the roadway as required in §§ 31-16-2 and 31-16-3, or
turn a vehicle to enter a private road or driveway, or otherwise turn a vehicle
from a direct course or move right or left upon a roadway, unless and until the
movement can be made with reasonable safety. No person shall so turn any
vehicle without giving an appropriate signal in the manner described in this
chapter in the event any other traffic may be affected by the movement. Violations
of this section are subject to fines enumerated in §31-41.1-4 of the general
laws.
31-16-6. Time of signaling turn. -- A signal of intention to turn right or left when required shall be given
continuously during not less than the last one hundred feet (100') traveled by
the vehicle before turning. Violations of this section are subject to fines
enumerated in §31-41.1-4 of the general laws.
31-16-7. Signaling of stops. -- No person shall stop or suddenly decrease the
speed of a vehicle without first giving an appropriate signal in the manner
described in this chapter to the driver of any vehicle immediately to the rear
when there is opportunity to give the signal. Violations of this section are
subject to fines enumerated in §31-41.1-4 of the general laws.
31-16-8. Method of giving signals. -- Any stop or turn signal when required in
this chapter shall be given either by means of the hand and arm or by a
signal-lamp or lamps or mechanical signal device, except as otherwise provided
in § 31-16-9. Violations of this section are subject to fines enumerated in
§31-41.1-4 of the general laws.
SECTION
112. Section 31-17-8 of the General Laws in Chapter 31-17 entitled
"Right-of-Way" is hereby amended to read as follows:
31-17-8. Right-of-way at rotary. -- In the absence of any traffic-control device or sign, the driver of a vehicle
about to enter a rotary, regardless of the direction from which the vehicle is
approaching, shall yield the right-of-way to all vehicles already in the
rotary. The state traffic commission shall determine the location of yield
signs at rotaries. Violations of this section are subject to fines
enumerated in §31-41.1-4 of the general laws.
SECTION 113. Sections
31-18-3, 31-18-5, 31-18-8, 31-18-12, and 31-18-18 of the General Laws in
Chapter 31-18 entitled "Pedestrians" are hereby amended to read as follows:
31-18-3. Right-of-way in crosswalk. -- (a) When traffic-control signals are not in place or not in operation the
driver of a vehicle shall yield the right-of-way, slowing down or stopping if
need be to yield, to a pedestrian crossing the roadway within a crosswalk when
the pedestrian is upon the half of the roadway upon which the vehicle is
traveling, or when the pedestrian is approaching so closely from the opposite
half of the roadway as to be in danger, but no pedestrian shall suddenly leave
a curb or other place of safety and walk or run into the path of a vehicle
which is so close that it is impossible for the driver to yield. This provision
shall not apply under the conditions stated in § 31-18-6.
(b) Violations of this section are subject to fines enumerated in
§31-41.1-4 of the general laws and
In in addition to any other penalty provided by
law, a judge or magistrate shall impose a mandatory fine of one hundred dollars
($100) for a second or any subsequent violation of this section.
31-18-5. Crossing other than at crosswalks. -- Every pedestrian crossing a roadway at any point other than within a
marked crosswalk or within an unmarked crosswalk at an intersection shall yield
the right-of-way to all vehicles upon the roadway. Violations of this section
are subject to fines enumerated in §31-41.1-4 of the general laws.
31-18-8. Due care by drivers. -- Notwithstanding
other provisions of this chapter or the provisions of any local ordinance,
every driver of a vehicle shall exercise due care to avoid colliding with any
pedestrian or any person propelling a human-powered vehicle upon any roadway,
shall give an audible signal when necessary, and shall exercise proper
precaution upon observing any child or any obviously confused, intoxicated, or
incapacitated person. Violations of this section are subject to
fines enumerated in §31-41.1-4 of the general laws.
31-18-12. Hitchhiking in road. -- No person shall stand in a roadway for the
purpose of soliciting a ride from the driver of any vehicle. Violations of
this section are subject to fines enumerated in §31-41.1-4 of the general laws.
31-18-18. Right-of-way on sidewalks.
-- The driver of a vehicle crossing
a sidewalk shall yield the right-of-way to all traffic proceeding along and
upon the sidewalk. Violations of this section are subject to fines
enumerated in §31-41.1-4 of the general laws.
SECTION
114. Section 31-19.1-2 of the General Laws in Chapter 31-19.1 entitled
"Motorized Bicycles" is hereby amended to read as follows:
31-19.1-2. Driving on interstate highways prohibited. -- No person shall operate a motorized
bicycle upon an interstate highway within this state. Violations of this
section are subject to fines enumerated in §31-41.1-4 of the general laws.
SECTION 115. Section 31-19.2-2 of the General Laws in Chapter 31-19.2
entitled "Motorized Tricycles" is hereby amended to read as follows:
31-19.2-2. Driving on interstate highways prohibited. -- No person shall operate a motorized
tricycle upon an interstate highway within this state. Violations of this
section are subject to fines enumerated in §31-41.1-4 of the general laws.
SECTION 116. Sections 31-19-3, 31-19-20, and 31-19-21 of the General Laws
in Chapter 31-19 entitled "Operation of Bicycles" are hereby amended
to read as follows:
31-19-3. Applicability of traffic laws. -- Every person propelling a vehicle by
human power shall be granted all of the rights and shall be subject to all of
the duties applicable to the driver of any other vehicle by chapters 12 - 27 of
this title, except as to special regulations in this chapter and except as to
those provisions of chapters 12 - 27 which by their nature can have no
application. This section shall not forbid a bicyclist from traveling upon the
shoulders of the highway except for those highways which prohibit bicyclists.
Violations of this section are subject to fines enumerated in §31-41.1-4 of the
general laws.
31-19-20. Sale of new bicycles. -- In every sale of a new bicycle, the seller shall issue a bill of
sale which shall contain on it the date of sale, the seller's and buyer's name
and address, the manufacturer's name, model, and serial number of the bicycle.
Violations of this section are subject to fines enumerated in §31-41.1-4 of the
general laws.
31-19-21. Sale of used bicycles. -- In every sale of a used bicycle, the seller shall issue a bill of
sale which shall contain on it the date of sale, the seller's and buyer's names
and addresses, the manufacturer's name, model, and serial numbers where this
information is available on the bicycle. Where any of this information is
missing, the seller must obtain a registration number from the local police.
Violations of this section are subject to fines enumerated in §31-41.1-4 of the
general laws.
SECTION 117. Sections 31-20-1, 31-20-2, and 31-20-9 of the General Laws
in Chapter 31-20 entitled "Special Stops Required" are hereby amended
to read as follows:
31-20-1. When railroad crossing stops required of all vehicles. -- Whenever any person driving a vehicle approaches a railroad grade
crossing under any of the circumstances stated in this section the driver of
the vehicle must stop within fifty feet (50') but not less than fifteen feet
(15') from the nearest rail of the railroad, and may not proceed until he or
she can do so safely. These requirements apply when:
(1) A clearly visible electric or mechanical signal device gives warning
of the immediate approach of a railroad train;
(2) A crossing gate is lowered, or when a human flagperson gives or
continues to give a signal of the approach or passage of a railroad train;
(3) A railroad train approaching within approximately one thousand five
hundred feet (1,500') of the highway crossing emits a signal audible from that
distance, and the railroad train, because of its speed or nearness to the
crossing, is an immediate hazard;
(4) An approaching railroad train is plainly visible and is in hazardous
proximity to the crossing.
Violations of this section are subject to fines enumerated in §31-41.1-4
of the general laws.
31-20-2. Driving through railroad gate or barrier. -- No person may drive any vehicle through, around, or under any
crossing gate or barrier at a railroad grade crossing while the gate or barrier
is closed or is being opened or closed.
Violations of this section are subject to fines enumerated in §31-41.1-4
of the general laws.
31-20-9. Obedience to stop signs. -- Every driver of a vehicle approaching a stop sign must stop before
the crosswalk on the near side of the intersection. If there is no crosswalk,
the driver must stop at the stop line. If there is no crosswalk and no stop
line, the driver must stop before entering the intersection at the point
nearest the intersecting highway where the driver has a view of all approaching
traffic, except when directed to proceed by a police officer. Violations of this section are subject to fines enumerated in §31-41.1-4
of the general laws.
SECTION 118. sections 31-21-4 and 31-21-14 of the General Laws in Chapter
31-21 entitled "Stopping, Standing, and Parking Restrictions" are
hereby amended to read as follows:
31-21-4. Places where parking or stopping prohibited. -- No person may stop, stand, or park a
vehicle, except when necessary to avoid conflict with other traffic or in
compliance with law or the directions of a police officer or traffic control
device, in any of the following places:
(1) On a sidewalk;
(2) In front of a public or private driveway;
(3) Within an intersection;
(4) Within eight feet (8') of a fire hydrant;
(5) On a crosswalk;
(6) Within twenty feet (20') of a crosswalk at an intersection;
(7) Within thirty feet (30') upon the approach to any flashing beacon,
stop sign, or traffic control signal located at the side of a roadway;
(8) Between a safety zone and the adjacent curb, or within thirty feet
(30') of points on the curb immediately opposite the ends of a safety zone,
unless the (traffic authority) indicates a different length by signs or
markings;
(9) Within fifty feet (50') of the nearest rail of a railroad crossing;
(10) Within twenty feet (20') of the driveway entrance to any fire
station, and on the side of a street opposite the entrance to any fire station
within seventy-five feet (75') of the entrance (when properly sign-posted);
(11) Alongside or opposite any street excavation or obstruction when
stopping, standing, or parking would obstruct traffic;
(12) On the roadway side of any vehicle stopped or parked at the edge or
curb of a street;
(13) Upon any bridge or other elevated structure upon a highway or within
a highway tunnel;
(14) At any place where official signs prohibit stopping;
(15) At any curb cut or ramp for persons with disabilities.
Violations of this section are subject to fines enumerated in §31-41.1-4
of the general laws.
31-21-14. Opening vehicle doors. --
No person may open the door of a
motor vehicle on the roadways, streets, or highways of this state unless and
until it is reasonably safe to do so, and can be done without interfering with
the movement of other traffic. No person may leave a door open on the side of a
vehicle on the roadways, streets, or highways of this state for a period of
time longer than necessary to load or unload passengers. Any person violating
the provisions of this section upon conviction shall be fined twenty
dollars ($20.00) fifty dollars ($50.00).
SECTION
119. Sections 31-22-2, 31-22-4, 31-22-5, 31-22-6, 31-22-7, 31-22-8, 31-22-9,
and 31-22-24 of the General Laws in Chapter 31-22 entitled "Miscellaneous
Rules" are hereby amended to read as follows:
31-22-2. Restrictions on backing. -- The driver of a vehicle may not move in reverse unless that movement
can be made with reasonable safety and without interfering with other traffic. Violations of this section are subject to fines enumerated in §31-41.1-4
of the general laws.
31-22-4. Overloading of vehicles.
-- (a) No person shall drive a
vehicle when it is overloaded, or when there are more than three (3) persons in
the front seat and the view of the driver to the front or sides of the vehicle
is obstructed, or the driver's control over the driving mechanism of the
vehicle is impeded.
(b) No passenger in a vehicle shall ride in any position that interferes
with the driver's view ahead or to the sides, or that interferes with the
driver's control over the driving mechanism of the vehicle.
(c) Violations of this section are subject to fines enumerated in
§31-41.1-4 of the general laws.
31-22-5. Safety zones. --
No vehicle shall at any time be
driven through or within a safety zone. Violations of this section are
subject to fines enumerated in §31-41.1-4 of the general laws.
31-22-6. Coasting prohibited. -- (a) When
traveling down a grade, the driver of any motor vehicle shall not coast with
the vehicle in neutral gear.
(b) When traveling down a grade, the driver of a commercial motor vehicle
shall not coast with the clutch applied in order to disengage the drive gears.
(c) Violations of this section are subject to fines enumerated in
§31-41.1-4 of the general laws.
31-22-7. Following fire apparatus.
-- The driver of any vehicle not on
official business, shall not follow any fire apparatus traveling in response to
a fire alarm closer than five hundred feet (500'), or drive into or park the
vehicle within the block where fire apparatus has stopped in answer to a fire
alarm. Violations of this section are subject to fines enumerated in
§31-41.1-4 of the general laws.
31-22-8. Crossing fire hose. -- No vehicle shall be driven over any unprotected fire department hose, when
it is laid down on any street or private driveway to be used at any fire or
alarm of fire, without the consent of the fire department official in command. Violations
of this section are subject to fines enumerated in §31-41.1-4 of the general
laws.
31-22-9. Throwing debris on highway - Snow
removal. -- (a) No
person shall throw or deposit upon any highway any glass bottle, glass, nails,
tacks, wire, cans, or any other substance likely to injure any person, animal,
or vehicle upon the highway, or likely to deface the beauty or cleanliness of
the highway. No person, in removing snow from any public or private driveway,
shall leave the snow in any condition so as to constitute a hazard on the
highway.
(b) The director of administration shall post signs advising the public
of penalties for throwing debris on the highways.
(c) Violations of this section are subject to fines enumerated in
§31-41.1-4 of the general laws.
31-22-24. Interior lights to be operated before dawn and after dusk
during police stop. --The
operator of any vehicle upon a highway within this state, when stopped by a law
enforcement or police officer between a half-hour after sunset to a half-hour
before sunrise, must operate the vehicle's interior lights until the officer
allows the vehicle to proceed. Violations of this section are subject to fines
enumerated in §31-41.1-4 of the general laws.
SECTION 120. Sections 31-23-4, 31-23-8, 31-23-10, 31-23-13, 31-23-13.1,
31-23-14, 31-23-15, 31-23-16, 31-23-17, 31-23-19, 31-23-20, 31-23-26, 31-23-27,
31-23-29, 31-23-40, 31-23-42.1, 31-23-43, 31-23-45 and 31-23-47 of the General
Laws in Chapter 31-23 entitled "Equipment and Accessories Generally"
are hereby amended to read as follows:
31-23-4. Brake equipment required. -- (a) Every motor vehicle, other than a motorcycle or motor-driven
cycle, when operated upon a highway, shall be equipped with brakes adequate to
slow, stop, and hold the vehicle, including two (2) separate means of applying
the brakes, each of which means shall be effective to apply the brakes to at
least two (2) wheels. These two means of applying the brakes must be
constructed so that failure of any one part of the operating mechanism does not
leave the motor vehicle without brakes on at least two (2) wheels.
(b) Every motorcycle and motor-driven cycle, when operated upon a
highway, shall be equipped with at least one brake, which may be operated by
hand or foot, and which is adequate to slow and stop the vehicle.
(c) Every trailer or semitrailer of a gross weight of four thousand
pounds (4,000 lbs.) or more, when operated upon a highway, shall be equipped
with brakes adequate to slow, stop, and to hold the vehicle. These brakes must
be designed to be applied from the normal operating position by the driver of
the towing motor vehicle. The brakes shall be so designed and connected that in
case of an accidental breakaway of the towed vehicle, the brakes shall be
automatically applied.
(d) Every new motor vehicle, trailer, or semitrailer sold in this state
and operated upon the highways shall be equipped with service brakes upon all
wheels. Motorcycles, motor-driven cycles, and semitrailers of less than four
thousand pounds (4,000 lbs.) gross weight need not be equipped with service
brakes.
(e) In any combination of motor-drawn vehicles means shall be provided
for applying the rearmost trailer brakes of any trailer equipped with brakes,
in approximate synchronism with the brakes on the towing vehicle and developing
the required braking effort on the rearmost wheels at the fastest rate; or
means shall be provided for applying braking effort first on the rearmost
trailer equipped with brakes; or both of the above means capable of being used
alternatively may be employed.
(f) Every motor vehicle, trailer, semitrailer, and pole trailer, and any
combination of those vehicles, except motorcycles and motor-driven cycles,
shall be equipped with parking brakes adequate to hold the vehicle on any grade
on which it is operated, under all conditions of loading on a surface free from
snow, ice, or loose material. The parking brakes shall be capable of being
applied in conformance with the foregoing requirements by the driver's muscular
effort, by spring action, or by equivalent means. The operation may be assisted
by the service brakes or other source of power, provided that failure of the
service brake actuation system or other power assisting mechanism will not
prevent the parking brakes from being applied in conformance with the foregoing
requirements. The parking brakes shall be so designed that when once applied
they shall remain applied with the required effectiveness, despite exhaustion
of any source of energy or leakage of any kind. The same brake drums, brake
shoes and lining assemblies, brake shoe anchors, and mechanical brake shoe
actuation mechanism normally associated with the wheel brake assemblies may be
used for both the service brakes and the parking brakes. If the means of
applying the parking brakes and the service brakes are connected in any way,
they shall be so constructed that failure of any one part shall not leave the
vehicle without operative brakes.
(g) The brake shoes operating within or upon the drums on the vehicle
wheels of any motor vehicle may be used for both service and hand operation.
(h) It is unlawful to
sell, offer for sale, or distribute brake linings for use on motor vehicles,
unless they meet specifications promulgated by the administrator of motor
vehicles. The administrator is authorized and empowered to adopt and amend
regulations governing types and to promulgate specifications of brake linings
which comply with the standards established by the vehicle equipment safety
commission. The administrator shall establish and maintain an approved list of
brake linings meeting those specifications. Any person who violates the
provisions of this section is guilty of a civil violation and is subject
to fines enumerated in §31-41.1-4 of the general laws.
31-23-8. Horn required. -- Every motor vehicle when operated upon a highway shall be equipped
with a horn in good working order and capable of emitting sound audible under
normal conditions from a distance of not less than two hundred feet (200'). No
horn or other warning device shall emit an unreasonably loud or harsh sound or
a whistle. The driver of a motor vehicle shall when reasonably necessary to
insure safe operation give audible warning with his or her horn but shall not
otherwise use the horn when upon a highway. Violations of this section are
subject to fines enumerated in §31-41.1-4 of the general laws.
31-23-10. Sirens, bells, and whistles prohibited. -- No vehicle may be equipped with nor may
any person use upon a vehicle any siren, whistle, or bell, except as permitted
in §§ 31-23-9, 31-23-11, and 31-23-12. Violations of this section are subject
to fines enumerated in §31-41.1-4 of the general laws.
31-23-13. Muffler. -- Every motor vehicle shall at all times be
equipped with a muffler in good working order and in constant operation to
prevent excessive or unusual noise and annoying smoke. No person shall use a
muffler cutout, bypass, or similar device upon a motor vehicle on a highway.
Any exhaust system is defective if any changes, modifications, alterations,
deletions, or adjustments have been made which would cause the exhaust system
to generate a higher or louder sound level than would be generated by the
exhaust system customarily installed by the manufacturer as original equipment.
The defective exhaust system shall be replaced or repaired to restore the
exhaust system to the performance specifications of the original equipment.
Failure to replace or restore the exhaust system within five (5) days is a
civil violation and violators are subject to fines enumerated
in §31-41.1-4 of the general laws.
31-23-13.1. Altering height of or operating a motor vehicle with an
altered height prohibited. --
No person may alter the height of or operate a motor vehicle with an altered
height that has an original manufacturer's gross vehicle weight rating of up to
and including ten thousand pounds (10,000 lbs.), by elevating or lowering the
chassis or body by more than four inches (4”) from the original manufacturers'
specified height by use of so called 'shackle lift kits' for leaf springs or by
use of lift kits for coil springs, tires, or any other means or device. The
administrator shall establish rules and regulations for motor vehicle heights
including exceptions for vehicles used for farming or forestry. No motor
vehicle that has been so altered, modified, or changed beyond the limits set
forth in this section or the rules and regulations established by the
administrator, shall be operated on any highway. Violations of this section are
subject to fines enumerated in §31-41.1-4 of the general laws.
31-23-14. Prevention of excessive fumes or smoke. -- The engine and power mechanism of every
motor vehicle shall be so equipped and adjusted as to prevent the escape of
excessive fumes or smoke. Violations of this section are subject to
fines enumerated in §31-41.1-4 of the general laws.
31-23-15. Rear-view mirror.-- (a) Every motor vehicle which is so
constructed or loaded as to obstruct the driver's view to the rear shall be
equipped with a mirror located so it reflects to the driver a view of the
highway for a distance of at least two hundred feet (200') to the rear of the
vehicle.
(b) Every motor vehicle, the primary function of which is the carrying of
passengers, shall be equipped with a rear-view mirror on the left front door or
fender, so located as to reflect a view of the highway for at least two hundred
feet (200') to the rear of the vehicle.
(c) Violations of this section are subject to fines enumerated in
§31-41.1-4 of the general laws.
31-23-16. Windshield and window stickers - Obstructions to clear
view. -- No person shall drive
any motor vehicle with any sign, poster, or other nontransparent material,
dirt, snow, or ice upon the front windshield, side wings, or side or rear
windows of the vehicle which obstructs the driver's clear view of the highway
or any intersecting highway. However, provided, that the administrator may
permit, and specify the manner of placing, special stickers upon the windshield
or any of the windows of a motor vehicle. Furthermore, no person shall drive
any motor vehicle with any significant amounts of snow or ice upon the vehicle;
the term 'significant' shall be construed as any amount of accumulation which
might reasonably be expected, when blowing off the vehicle while driving, to
obscure the vision of an operator of another vehicle. The natural accumulation
of snow while driving during adverse weather conditions shall not constitute a
violation of this section. Violations of this section are subject to fines
enumerated in §31-41.1-4 of the general laws.
31-23-17. Windshield wipers. -- (a) The windshield on every motor vehicle shall be equipped with a
device for cleaning rain, snow, or other moisture from the windshield, this
device shall be constructed to be controlled or operated by the driver of the
vehicle.
(b) Every windshield wiper upon a motor vehicle shall be maintained in
good working order.
(c) Violations of this section are subject to fines enumerated in
§31-41.1-4 of the general laws.
31-23-19. Metal tires prohibited. -- No person may operate or move on any highway any motor vehicle,
trailer, or semi trailer having any metal tire in contact with the roadway.
Violations of this section are subject to fines enumerated in §31-41.1-4 of the
general laws.
31-23-20. Protuberances on tires. -- No tire on a vehicle moved on a highway shall have on its periphery
any block, flange, cleat, or pointed spike or other protuberance of any
material other than rubber which projects beyond the tread of the traction
surface of the tire, except that:
(1) It is permissible to use tires with flat-headed studs projecting
one-sixteenth inch (1/16") or less beyond the tread of the traction
surface, but only from the fifteenth day of November to the first day of April;
(2) It is permissible to use farm machinery with tires having
protuberances which will not injure the highway; and
(3) It is permissible to use tire chains of reasonable proportions upon
any vehicle when required for safety because of snow, ice, or other conditions
tending to cause a vehicle to skid.
(4) Violations of this section are subject to fines enumerated in
§31-41.1-4 of the general laws.
31-23-26. Fenders and wheel flaps required. -- No person shall operate any motor
vehicle on any public highway of this state unless the vehicle is equipped with
fenders covering the front wheels of the motor vehicle. No person shall operate
any passenger motor vehicle on any public highway equipped with tires which
extend beyond the fenders or body of the vehicle unless it is also equipped
with flaps or suitable guards to reduce spray or splash to the rear and sides.
Violations of this section are subject to fines enumerated in §31-41.1-4 of the
general laws.
31-23-27. Rear wheel flaps on buses, trucks, and trailers. -- No person shall operate or cause to be
operated any bus, truck, full trailer, or semitrailer, of registered gross
weight exceeding three (3) tons on any public highway in this state unless it
is equipped with suitable metal protectors or substantial flexible flaps behind
the rearmost wheels. If the rear wheels are not covered at the top and rear by
fender, body, or other parts of the vehicle, the rear wheels shall be covered
at the top and rear by protective means of a standard type or design, and
installed so as to reduce, as far as practicable, the wheels from throwing dirt,
water, or other materials on the windshields of following vehicles. This
provision does not apply when the motor vehicle is designed and constructed to
attain this end through other fender or body construction, or by other means of
enclosure. However, §§ 31-23-26 - 31-23-28 do not apply to vehicles that
require complete freedom around the wheel area in order to serve the end for
which they were designed. Violations of this section are subject to fines
enumerated in §31-41.1-4 of the general laws.
31-23-29. Flares and warning devices. -- (a) No person shall operate any truck, truck/tractor, or passenger
bus upon any highway unless that vehicle is equipped with flares and/or warning
devices for stopped and/or disabled vehicles.
(b) These flares and/or warning devices shall conform and be displayed
according to regulations set forth in 49 CFR parts 390 - 399, as amended.
(c) Violations of this section are subject to fines enumerated in
§31-41.1-4 of the general laws.
31-23-40. Approved types of seat belts - Enforcement of requirements. -- All safety belts must be of a type and
must be installed in a manner approved by the division of motor vehicles. The
division shall establish specifications and requirements for approved types of
safety belts and attachments to them. The division will accept, as approved,
all seat belt installations and the belt and anchor meeting the society of
automotive engineers' specifications. No new passenger motor vehicle shall be
registered unless it is equipped with an approved type of safety seat belt. The
administrator shall suspend the registration of any motor vehicle not so
equipped until it is made to conform to the requirements of this section.
Violations of this section are subject to fines enumerated in §31-41.1-4 of the
general laws.
31-23-42.1. Special mirrors on school buses. -- Every school bus as defined in §
31-1-3(r) shall be equipped with a system of mirrors that will give the seated
driver a view of the roadway to each side of the bus, and the area immediately
in front of the front bumper, in accordance with the following specifications:
(1) At least seven and one-half inches (71/2") of a thirty-inch
(30") long rod shall be visible to the driver, either by direct view or by
means of an indirect visibility system, when the rod is placed upright on the
ground at any point along a traverse line extending one foot from the
forward-most point of the bus and one foot from the length and width and rear
of the bus.
(2) Every school bus owner shall maintain a measuring rod thirty inches
(30") in length with distinctive identification marks located at seven and
one-half inch (71/2") intervals for purposes of adjusting the system of
mirrors required by this section in accordance with these specifications.
(3) Other mirrors shall be located and adjustable so as to meet their
intended minimum requirements, and may be incorporated in the system of mirrors
required by this section.
(4) Each school bus shall be equipped with at least two (2) flat-surfaced
rectangular exterior mirrors, one situated on each side of the bus forward of
the operator and any entrance door. The reflecting surface shall not be
obscured and shall have a minimum reflective surface of fifty square inches
(50" sq.). The mirrors shall be firmly supported and adjustable, and shall
afford the driver a clear, stable, reflected view of the road surface at each
side of the vehicle for a continual distance beginning at a point not greater
than two hundred feet (200') to the rear and continuing to the horizon when
measured on a straight and level road.
(5) Exterior mirror mounts shall include a wide angle adjustable convex
mirror to provide a close-in field of vision to the operator. Each school bus
shall be equipped with convex mirrors that shall be mounted at the left front
corner and the right front corner of the vehicle, sufficiently adjustable to
enable a seated operator to observe a reflection of the area in front of the
bus where children might stand or pass.
(6) Each school bus shall be equipped with interior mirrors that shall
afford the driver a view of the bus interior, emergency door, and the roadway
to the immediate rear of the bus. Every school bus with a seating capacity of
sixteen (16) passengers or fewer shall have a convex rear view mirror located
near the right front corner, so as to provide the operator with a view of the
ground area at the entrance door when the door is not equipped with safety
glass in the lower portion of the door.
Violations of this section are subject to fines enumerated in §31-41.1-4
of the general laws.
31-23-43. Wheel safety chocks. -- (a) Every bus having a seat capacity of more than seven (7)
passengers, every truck with a gross weight of more than seven thousand pounds
(7,000 lbs.), and every tractor or trailer, or combination, operated upon the
public highways shall be equipped with one pair of approved wheel safety chock
blocks. Whenever the motor vehicle shall be parked on a highway on a grade
sufficient to cause the vehicle to move of its own momentum, and is left
unattended by the operator, the safety chock blocks shall be securely placed
around the rear wheel of the vehicle so as to prevent its movement.
(b) Whenever the motor vehicle is equipped with positive spring-loaded
air parking brakes, the vehicle need not be equipped with the safety wheel
chocks.
(c) Violations of this section are subject to fines enumerated in
§31-41.1-4 of the general laws.
31-23-45. Tire treads. -- No tire on a vehicle moved on a highway shall have on its periphery
less than two thirty-seconds of an inch (2/32") of tread depth. The
administrator is authorized to remove from a highway any vehicle not conforming
to this requirement, and shall suspend the registration of the motor vehicle
until it conforms to the requirements of this section.
Violations of this section are subject to fines enumerated in §31-41.1-4
of the general laws.
31-23-47. Slow moving vehicle emblems-- Except where otherwise provided in this
section, every motor vehicle designed for operation at speeds of twenty-five
miles per hour (25 mph) or less shall at all times be equipped with a slow
moving vehicle emblem mounted on the rear of it. This emblem shall comply with
the current standards and specifications approved by the administrator. It is
further required that:
(1) If a towed unit is sufficiently large to obscure any slow moving
emblem on the rear of a motor vehicle, only the towed unit need be equipped
with the emblem; and
(2) If the slow moving vehicle emblem on the motor vehicle would not be
obscured by the towed unit, then either or both may be equipped with the
required emblem but it shall be sufficient if either has it.
(3) Violations of this section are subject to fines enumerated in
§31-41.1-4 of the general laws.
SECTION 121. Sections 31-24-1, 31-24-4, 31-24-5, 31-24-6, 31-24-7,
31-24-8, 31-24-9, 31-24-10, 31-24-11, 31-24-12, 31-24-13, 31-24-14, 31-24-15,
31-24-16, 31-24-17, 31-24-18, 31-24-19, 31-24-20, 31-24-21, 31-24-22, 31-24-23,
31-24-24, 31-24-25, 31-24-26, 31-24-27, 31-24-28, 31-24-29, 31-24-30, 31-24-31,
31-24-32, 31-24-33, 31-24-34, 31-24-35, 31-24-36, 31-24-37, 31-24-38, 31-24-39,
31-24-40, 31-24-41, 31-24-42, 31-24-43, 31-24-44, 31-24-45, 31-24-46, 31-24-47,
31-24-48, 31-24-49, 31-24-50, 31-24-51, 31-24-52, 31-24-53 and 31-24-54 of the
General Laws in Chapter 31-24 entitled "Lighting Equipment and
Reflectors" are hereby amended to read as follows:
31-24-1. Times when lights required. -- Every vehicle upon a highway within this state at any time from
sunset to sunrise and at any other time when windshield wipers are in use, as a
result of rain, sleet, snow, hail, or other unfavorable atmospheric condition,
or at any other time when there is not sufficient light or visibility, because
of severe rain or any other condition, to clearly see persons and vehicles on
the highway at a distance of five hundred feet (500') ahead, shall display
lighted lamps and illuminating devices as required under this chapter for
different classes of vehicles, subject to the exceptions given in this chapter
with respect to parked vehicles.
Violations of this section are subject to fines enumerated in §31-41.1-4
of the general laws.
31-24-4. Head lamps on vehicles other than cycles. -- Every motor vehicle other than a motorcycle
or motor-driven cycle shall be equipped with at least two (2) head lamps with
at least one on each side of the front of the motor vehicle, and the head lamps
shall comply with the requirements and limitations of this chapter. Violations
of this section are subject to fines enumerated in §31-41.1-4 of the general
laws.
31-24-5. Head lamps on motorcycles and motor-driven cycles. -- Every motor cycle and every motor-driven
cycle shall be equipped with at least one and not more than two (2) head lamps
which shall comply with the requirements and limitations of this chapter.
Violations of this section are subject to fines enumerated in §31-41.1-4 of the
general laws.
31-24-6. Height of head lamps.-- Every head lamp, upon every motor vehicle, including every motorcycle
and motor-driven cycle shall be located at a height of not more than fifty-four
inches (54") nor less than twenty-four inches (24"), to be measured
as set forth in § 31-24-3. Violations of this section are subject to fines
enumerated in §31-41.1-4 of the general laws.
31-24-7. Tail lamps required. -- Every motor vehicle, trailer, semitrailer, and pole trailer, and any
other vehicle which is being drawn at the end of a train of vehicles, shall be
equipped with at least one tail lamp mounted on the rear which, when lighted as
required in this chapter, emits a red light plainly visible from a distance of
five hundred feet (500') to the rear, provided that in the case of a train of
vehicles only the tail lamp on the rearmost vehicle need actually be seen from
the distance specified. Violations of this section are subject to fines
enumerated in §31-41.1-4 of the general laws.
31-24-8. Height of tail lamps -- Every tail lamp upon every vehicle shall be located at a height of
not more than seventy-two inches (72") nor less than twenty inches
(20"), to be measured as set forth in § 31-24-3. Violations of this
section are subject to fines enumerated in §31-41.1-4 of the general laws.
31-24-9. Illumination of rear registration plate - Wiring of rear
lights in connection with head lamps. -- Either a tail lamp or a separate lamp shall be constructed and
placed as to illuminate with a white light the rear registration plate and
render it clearly legible from a distance of sixty feet (60') to the rear. Any
tail lamp or tail lamps, together with any separate lamp for illuminating the
rear registration plate, shall be so wired as to be lighted whenever the head
lamps or auxiliary driving lamps are lighted. Violations of this section are
subject to fines enumerated in §31-41.1-4 of the general laws.
31-24-10. Rear reflectors required. -- Every new motor vehicle sold and operated upon a highway, other than
a truck tractor, shall carry on the rear, either as a part of the tail lamps or
separately, two (2) red reflectors, except that every motorcycle and every
motor-driven cycle shall carry at least one reflector, meeting the requirements
of § 31-24-11, and except that vehicles of the type mentioned in § 31-24-37
shall be equipped with reflectors. Violations of this section are subject to
fines enumerated in §31-41.1-4 of the general laws.
31-24-11. Specifications for reflectors. -- Reflectors shall be mounted on the
vehicle at a height not less than twenty inches (20") nor more than sixty
inches (60") measured as set forth in § 31-24-3, and shall be of size,
characteristics, and so mounted as to be visible at night from all distances
within three hundred feet and fifty feet (350') from the vehicle when directly
in front of lawful upper beams of head lamps, except for on those vehicles for
which reflector visibility from a greater distance is required by this chapter.
Violations of this section are subject to fines enumerated in §31-41.1-4 of the
general laws.
31-24-12. Stop lamps required. -- All motor vehicles shall be equipped with stop lamps. It is unlawful
for any person to sell in this state any new motor vehicle, including any
motorcycle or motor-driven cycle, or for any person to drive a vehicle on the
highways unless it is equipped with a stop lamp meeting the requirements of §§
31-24-13 and 31-24-14. Violations of this section are subject to fines
enumerated in §31-41.1-4 of the general laws.
31-24-13. Stop and turn lamps authorized. --Any motor vehicle may be equipped with,
and when required under this chapter shall be equipped with, the following
signal lamps or devices:
(1) A stop lamp on the rear which emits a red or yellow light, and which
is actuated by applying the service (foot) brake and which may but need not be
incorporated with a tail lamp;
(2) A lamp or lamps or mechanical signal device capable of clearly
indicating the intention to turn either to the right or to the left and which
shall be visible both from the front and rear.
(3) Violations of this section are subject to fines enumerated in
§31-41.1-4 of the general laws.
31-24-14. Specifications for stop or signal lamps. -- A stop lamp, when lit, shall be plainly
visible from a distance of one hundred feet (100') to the rear, day or night. A
turn signal lamp, when lit, shall be visible from a distance of one hundred
feet (100') both to the front and rear, day or night. When a vehicle is
equipped with a stop lamp or signal lamps, the lamp or lamps shall at all times
be maintained in good working condition. No stop lamp or signal lamp shall
project a glaring or dazzling light. Violations of this section are subject to
fines enumerated in §31-41.1-4 of the general laws.
31-24-15. Mechanical signal devices self-illuminated. -- All mechanical signal devices shall be
self-illuminated when in use at the times mentioned in § 31-24-1. Violations of
this section are subject to fines enumerated in §31-41.1-4 of the general laws.
31-24-16. Spot lamps.
-- Any motor vehicle may be equipped with not to exceed two (2) spot lamps and every
lighted spot lamp shall be aimed and used upon approaching another vehicle so
that no part of the high-intensity portion of the beam will be directed to the
left of the prolongation of the extreme left side of the vehicle nor more than
one hundred feet (100') ahead of the vehicle. Violations of this section are
subject to fines enumerated in §31-41.1-4 of the general laws.
31-24-17. Road lamps and fog lamps. -- Any motor vehicle may be equipped with not more than two (2) road
lamps or fog lamps which shall be rigidly affixed to the motor vehicle below
the level of the head lamps, and shall be so aimed and used that no part of the
high-intensity portion of the light beam shall rise more than eighteen inches
(18") above the ground at a distance of seventy-five feet (75') or more in
front of the vehicle or be directed left of the prolongation of the extreme
left side of the vehicle. Fog lamps and road lamps shall not be used in lieu of
head lamps. Violations of this section are subject to fines enumerated in
§31-41.1-4 of the general laws.
31-24-18. Side cowl and fender lamps. -- Any motor vehicle may be equipped with not more than two (2) side
cowl or fender lamps which shall emit an amber or white light without glare.
Violations of this section are subject to fines enumerated in §31-41.1-4 of the
general laws.
31-24-19. Running board courtesy lamps. -- Any motor vehicle may be equipped on
each side of its running board with not more than one courtesy lamp which shall
emit a white or amber light without glare. Violations of this section are
subject to fines enumerated in §31-41.1-4 of the general laws.
31-24-20. Back up lamps. -- Any motor vehicle may be equipped with not more than two (2) back up
lamps either separately or in combination with other lamps, but no back up lamp
shall be lighted when the motor vehicle is in forward motion. Violations of
this section are subject to fines enumerated in §31-41.1-4 of the general laws.
31-24-21. Lighting of farm tractors -- Every farm tractor equipped with an electric lighting system shall,
at all times mentioned in § 31-24-1, display a red tail lamp and either
multiple beam or single beam head lamp equipment meeting respectively the
requirements of §§ 31-24-7 - 31-24-9, 31-24-22, and 31-24-24. Violations of
this section are subject to fines enumerated in §31-41.1-4 of the general laws.
31-24-22. Multiple beam lamps required. -- Except as provided in this chapter, the
head lamps, the auxiliary driving lamps, or combinations of these on motor
vehicles, other than a motorcycle or a motor-driven cycle, shall be arranged so
that selection may be made between distributions of light projected to
different elevations, subject to the following requirements and limitations:
(1) There shall be an uppermost distribution of light, or composite beam,
aimed and of an intensity to reveal persons and vehicles at a distance of at
least three hundred fifty feet (350') ahead for all conditions of loading.
(2) There shall be a lowermost distribution of light, or composite beam
so aimed and of sufficient intensity to reveal persons and vehicles at a
distance of at least one hundred feet (100') ahead under any condition of
loading. None of the high-intensity portion of the beam shall be directed to
strike the eyes of an approaching driver.
(3) Other than a motorcycle or motor-driven cycle, every new motor
vehicle registered in this state, and which has multiple beam road lighting
equipment, shall be equipped with a beam indicator, which shall be lighted only
whenever the uppermost distribution of light from the head lamps is in use. The
indicator shall be designed and located so that when lighted it will be readily
visible without glare to the driver of that vehicle.
(4) Violations of this section are subject to fines enumerated in
§31-41.1-4 of the general laws.
31-24-23. Use of multiple beam lamps. -- Whenever a motor vehicle is being operated on a roadway or on its
shoulder during the times specified in § 31-24-1, the driver shall use a
distribution of light, or composite beam, directed high enough and of
sufficient intensity to reveal persons and vehicles at a safe distance in
advance, subject to the following requirements and limitations:
(1) Whenever the driver of a vehicle approaches an oncoming vehicle
within five hundred feet (500'), the driver shall use a distribution of light,
or composite beam, aimed so that the glaring rays are not projected into the
eyes of the oncoming driver. The lowermost distribution of light, or composite
beam, specified in subdivision (2) of § 31-24-22, shall be deemed to avoid
glare at all times, regardless of road contour and loading.
(2) Whenever the driver of a vehicle follows another vehicle within two
hundred feet (200') to the rear, except when engaged in the act of overtaking
and passing, the driver shall use a distribution of light permissible under
this chapter other than the uppermost distribution of light specified in
subdivision (1) of § 31-24-22.
(3) Violations of this section are subject to fines enumerated in
§31-41.1-4 of the general laws.
31-24-24. Single beam
lamps. -- Motor vehicles
manufactured and sold prior to November 1, 1951, are permitted to employ head
lamps arranged to provide a single distribution of light in lieu of multiple
beam road lighting equipment as described in this chapter. These lamps
providing a single distribution of light must comply with the following
requirements and limitations:
(1) The head lamps shall be aimed so that
when the vehicle is not loaded none of the high-intensity portion of the light
shall, at a distance of twenty-five feet (25') ahead, project higher than a
level of five inches (5”) below the level of the center of the lamp from which
it comes, and in no case higher than forty-two inches (42”) above the level on
which the vehicle stands at a distance of seventy-five feet (75') ahead.
(2) The intensity shall be sufficient to reveal persons and vehicles at a
distance of at least two hundred feet (200').
(3) Violations of this section are subject to fines enumerated in
§31-41.1-4 of the general laws.
31-24-25. Specifications for head lamps on motor-driven cycles. -- The head or head lamps upon every
motor-driven cycle may be of the single beam or multiple beam type but in
either event shall comply with the requirements and limitations as follows:
(1) Every head lamp or head lamps on a motor-driven cycle shall be of
sufficient intensity to reveal a person or a vehicle at a distance of not less
than one hundred feet (100') when the motor driven cycle is operated at any
speed less than twenty-five miles per hour (25 m.p.h.), and at a distance of
not less than two hundred feet (200') when the motor-driven cycle is operated
at a speed of twenty-five (25) or more miles per hour, and the motor-driven
cycle shall be subject to the speed limitations in § 31-14-10.
(2) In the event the motor-driven cycle is equipped with multiple beam
head lamp or head lamps, the upper beam shall meet the minimum requirements set
forth above and shall not exceed the limitations set forth in subdivision (1)
of § 31-24-22, and the lowermost beam shall meet the requirements applicable to
a lowermost distribution of light as set forth in subdivision (2) of §
31-24-22.
(3) In the event the motor-driven cycle is equipped with a single beam
lamp or lamps, the lamp or lamps shall be aimed so that when the vehicle is
loaded, none of the high-intensity portion of light, at a distance of
twenty-five feet (25') ahead, shall project higher than the level of the center
of the lamp from which it comes.
(4) Violations of this section are subject to fines enumerated in
§31-41.1-4 of the general laws.
31-24-26. Head lamps of slow vehicles. -- Any slow moving motor vehicle may be operated under the conditions
specified in § 31-24-1 when equipped with two (2) lighted lamps upon the front
capable of revealing persons and objects seventy-five feet (75') ahead. These
lamps may be used in place of the lamps required in § 31-24-22 or 31-24-24, so
long as the vehicle at no time travels in excess of twenty miles per hour (20
mph). Violations of this section are subject to fines enumerated in §31-41.1-4
of the general laws.
31-24-27. Display of lighted lamps required. -- At all times specified in § 31-24-1, at
least two (2) lighted lamps shall be displayed one on each side at the front of
every motor vehicle other than a motorcycle or motor-driven cycle. This section
does not apply when the vehicle is parked, and is subject to the regulations
governing lights on parked vehicles. Violations of this section are subject to
fines enumerated in §31-41.1-4 of the general laws.
31-24-28. Maximum number of lamps lighted. -- Whenever a motor vehicle equipped with
head lamps, as required by this chapter, is also equipped with any auxiliary
lamps, a spot lamp, or any other lamp on the front that projects a beam of an
intensity greater than three hundred (300) candle power, not more than a total
of four of the lamps on the front of a vehicle shall be lighted at any one time
when the vehicle is on a highway. Violations of this section are subject to
fines enumerated in §31-41.1-4 of the general laws.
31-24-29. Maximum intensity of lights. -- Any lighted lamp or illuminating device upon a motor vehicle other
than head lamps, spot lamps, auxiliary lamps, or flashing front direction
signals which projects a beam of light of an intensity greater than three
hundred (300) candle power, shall be directed so that no part of the beam will
strike the level of the roadway on which the vehicle stands at a distance of
more than seventy-five feet (75') from the vehicle. Violations of this section
are subject to fines enumerated in §31-41.1-4 of the general laws.
31-24-30. Red lights in front prohibited. -- No person shall drive or move any
vehicle or equipment upon any highway with any lamp or device on it displaying
a red light visible from directly in front of the center of the vehicle. This
section does not apply to any vehicle upon which a red light visible from the
front is expressly authorized or required by chapters 1 - 27 of this title.
Violations of this section are subject to fines enumerated in §31-41.1-4 of the
general laws.
31-24-31. Flashing lights - Forward viewing or rotary beam lights. -- (a) Flashing lights are prohibited,
except on an authorized emergency vehicle, school bus, snow removal equipment,
any vehicle as a means for indicating a right or left turn, or as required by §
31-24-33 for a vehicle stopped on an unlighted highway; provided, however, that
the requirements of § 31-24-33 shall be deemed to be satisfied if the vehicle
is equipped with lamps at the front mounted at the same level, displaying
simultaneously flashing white or amber lights, and at the rear mounted at the
same level, and displaying simultaneously flashing red lights, all of which
lights shall be visible from distance of not less than five hundred feet
(500').
(b) Forward viewing or rotating beam lights may be installed on and shall
be restricted to the following categories of emergency vehicles; these lights
shall be of a color designated:
(1) Emergency response vehicles of any fire, rescue, or ambulance
department; emergency response vehicles of fire chiefs, assistant fire chiefs,
deputy chiefs, and captains; any privately owned vehicle of any authorized
volunteer member of a fire, rescue, or ambulance department; any privately
owned vehicle of emergency management agency directors and assistant directors,
assistant medical examiners and/or forensic pathologists of the office of state
medical examiners; rescue vehicles; emergency response vehicles of the department
of environmental management and the division of state fire marshal; school
buses; and two (2) American Red Cross disaster vehicles. Red, white, and/or
alternating flashing white;
(2) Wrecker trucks, service station trucks, state and town safety and maintenance
vehicles; snowplows and tractors; light company trucks, telephone company
trucks, water company trucks, oil company trucks, and other utilities' trucks;
vehicles of television, radio and press photographers, rural mail carriers; all
motor-propelled vehicles owned by the Northern Rhode Island REACT (radio
emergency associated citizens team); and all motor-propelled vehicles owned by
or under contract to the Rhode Island department of administration when on
official state business. Amber;
(3) Police units, state and local. Center rotating beam lights: blue or
red. Outboard mounted lights: Blue or red.
(4) Violations of this section are subject to fines enumerated in
§31-41.1-4 of the general laws.
31-24-32. Vehicles parked on lighted highways. -- Whenever a vehicle is
lawfully parked upon a street or highway during the hours between one-half
(1/2) hour after sunset and one-half (1/2) hour before sunrise, and so long as
there is sufficient light to reveal any person or object within a distance of
five hundred feet (500') upon that street or highway, no lights need to be
displayed upon the parked vehicle. Violations of this section are subject to
fines enumerated in §31-41.1-4 of the general laws.
31-24-33. Vehicles stopped on unlighted highways. -- (a) Whenever an attended or unattended
vehicle is parked or stopped upon a roadway or its shoulder during the hours
between one-half (1/2) hour after sunset and one-half (1/2) hour before
sunrise, and there is not sufficient light to reveal any person or object
within a distance of five hundred feet (500') upon the highway, that vehicle
shall be equipped with one or more lamps meeting the following requirements:
(1) At least one lamp shall display a white or amber light visible from a
distance of five hundred feet (500') to the front of the vehicle;
(2) The same lamp or at least one other lamp shall display a red light
visible from a distance of five hundred feet (500') to the rear of the vehicle;
(3) The location of the lamp or lamps shall always be such that at least
one lamp or combination of lamps meeting the requirements of this section is
installed as near as practicable to the side of the vehicle which is closest to
passing traffic.
(b) Subsection (a) of this section does not apply to a motor-driven cycle.
(c) Violations of this section are subject to fines enumerated in
§31-41.1-4 of the general laws.
31-24-34. Dimming of head lamps on parked vehicles. -- Any lighted head lamps upon a parked
vehicle shall be depressed or dimmed. Violations of this section are subject to
fines enumerated in §31-41.1-4 of the general laws.
31-24-35. Lamps on animal-drawn, farm, and road vehicles. -- All vehicles, including animal-drawn
vehicles and those referred to in § 31-23-3 but not specifically required in
preceding sections of this chapter to be equipped with lamps, shall at the
times specified in § 31-24-1 be equipped with at least one lighted lamp or
lantern exhibiting a white light visible from a distance of five hundred feet
(500') to the front of the vehicle and with a lamp or lantern exhibiting a red
light visible from a distance of five hundred feet (500') to the rear.
Violations of this section are subject to fines enumerated in §31-41.1-4 of the
general laws.
31-24-36. Vehicles requiring special lights and reflectors - Time of
lighting. -- The following
sections of this chapter, including §§ 31-24-37 - 31-24-44, relating to
clearance and marker lamps, reflectors, and stop lights apply as stated in the
above sections to vehicles of the type enumerated in those sections, namely
passenger buses, trucks, truck tractors, and certain trailers, semi trailers,
and pole trailers, respectively, when operated upon any highway. These vehicles
shall be equipped as required, and all lamp equipment required shall be lighted
at the times mentioned in § 31-24-1, except that clearance and side marker
lamps need not be lighted on the vehicle when operated within any municipality
where there is sufficient light to render clearly discernible persons and
vehicles on the highway at a distance of five hundred feet (500'). Violations
of this section are subject to fines enumerated in §31-41.1-4 of the general
laws.
31-24-37. Clearance and marker lamps and reflectors. -- In addition to other equipment required
in chapters 1 - 27 of this title, the following vehicles shall be equipped as
follows under the conditions stated in § 31-24-36.
(1) On every bus or truck, whatever its size, there shall be the
following:
(i) On the rear, two (2) reflectors, one at each side; and
(ii) On the rear, one stop light.
(2) On every bus or truck eighty inches (80") or more in overall
width, in addition to the requirements in subdivision (1) of this section:
(i) On the front, two (2) clearance lamps, one at each side;
(ii) On the rear, two (2) clearance lamps, one at each side;
(iii) On each side, two (2) side marker lamps, one at or near the front
and one at or near the rear;
(iv) On each side, two (2) reflectors, one at or near the front and one
at or near the rear.
(3) On every truck tractor:
(i) On the front, two (2) clearance lamps, one at each side;
(ii) On the rear, one stop light.
(4) On every trailer or semitrailer having a gross weight in excess of
three thousand pounds (3,000 lbs.):
(i) On the front, two (2) clearance lamps, one at each side;
(ii) On each side, two (2) side marker lamps, one at or near the front
and one at or near the rear;
(iii) On each side, two (2) reflectors, one at or near the front and one
at or near the rear;
(iv) On the rear, two (2) clearance lamps, one at each side;
(v) On the rear, two (2) reflectors, one at each side; and
(vi) On the rear, one stop light.
(5) On every pole trailer in excess of three thousand pounds (3,000 lbs.)
gross weight:
(i) On each side, one side marker lamp and one clearance lamp which may
be in combination, to show to the front, side, and rear.
(ii) On the rear of the pole trailer or load, two (2) reflectors, one at
each side.
(6) On every trailer, semitrailer, or pole trailer weighing three
thousand pounds (3,000 lbs.) gross or less:
(i) On the rear, two (2) reflectors, one on each side.
(ii) If any trailer or semitrailer is so loaded or is of such dimensions
as to obscure the stop light on the towing vehicle, then the vehicle shall also
be equipped with one stop light.
Violations of this section are subject to fines enumerated in §31-41.1-4
of the general laws.
31-24-38. Color of clearance and marker lamps and reflectors. -- (a) Front clearance lamps and those marker lamps and reflectors
mounted on the front or on the side near the front of a vehicle shall display
or reflect an amber color.
(b) Rear clearance lamps and those marker lamps and reflectors mounted on
the rear or on the sides near the rear of a vehicle shall display or reflect a
red color.
(c) All lighting devices and reflectors mounted on the rear of any
vehicle shall display or reflect a red color, except the stop light or other
signal device, which may be red, amber, or yellow, and except that the light
illuminating the license plate or the light emitted by a back up lamp shall be
white.
(d) Violations of this section are subject to fines enumerated in
§31-41.1-4 of the general laws.
31-24-39. Mounting of reflectors. -- (a) When required by § 31-24-37, reflectors shall be mounted on a
vehicle at a height not less than twenty-four inches (24") and not higher
than sixty inches (60") above the ground. If the highest part of the
permanent structure of the vehicle is less than twenty-four inches (24"),
the reflector at that point shall be mounted as high as that part of the
permanent structure will permit.
(b) The rear reflectors on a pole trailer may be mounted on each side of
the bolster or load.
(c) Any required red reflector on the rear of a vehicle may be incorporated
with the tail lamp, but the reflector shall meet all the other reflector
requirements of this chapter.
(d) Violations of this section are subject to fines enumerated in
§31-41.1-4 of the general laws.
31-24-40. Mounting of clearance and side marker lamps. -- Clearance lamps shall be mounted on the
permanent structure of the vehicle in a way that will indicate the furthest
extents of its width, and will be as near the top of the vehicle as
practicable. Clearance lamps and side marker lamps may be mounted in
combination, provided illumination is given as required in this section with
reference to both. Violations of this section are subject to fines enumerated
in §31-41.1-4 of the general laws.
31-24-41. Visibility of reflectors. -- Every reflector upon any vehicle referred to in § 31-24-37 shall be
of a size, possess such characteristics, and be maintained as to be readily
visible at night from distances between fifty feet (50') and five hundred feet
(500') from the vehicle when directly in front of lawful upper beams of head
lamps. Reflectors required to be mounted on the sides of the vehicle shall
reflect the required color of light to the sides, and those mounted on the rear
shall reflect a red color to the rear. Violations of this section are subject
to fines enumerated in §31-41.1-4 of the general laws.
31-24-42. Visibility of front and rear clearance lamps. -- When they are required, front and rear
clearance lamps shall be capable of being seen and distinguished under normal
atmospheric conditions at a distance of five hundred feet (500') from the front
and rear of the vehicle. Violations of this section are subject to fines
enumerated in §31-41.1-4 of the general laws.
31-24-43. Visibility of side marker lamps. -- When they are required, side marker
lamps shall be capable of being seen and distinguished under normal atmospheric
conditions at a distance of five hundred feet (500') from the side of the
vehicle on which they are mounted. Violations of this section are subject to
fines enumerated in §31-41.1-4 of the general laws.
31-24-44. Obstructed lights not required. -- During the time that lights are required, whenever motor and other
vehicles are operated in combination, those lights on the one vehicle (except
tail lamps) that are obscured from view by the other vehicle need not be
lighted. This does not affect the requirement that lighted clearance lamps be
displayed on the front of the foremost vehicle required to have clearance
lamps, nor that all lights required on the rear of the rearmost vehicle of any
combination shall be lighted. Violations of this section are subject to fines
enumerated in §31-41.1-4 of the general laws.
31-24-45. Projecting loads. -- Whenever the load upon any vehicle extends to the rear or front four
feet (4') or more beyond the bed or body of the vehicle, there shall be
displayed at the extreme rear end or front of the load, at the time specified
in § 31-24-1, a red light or lantern plainly visible from a distance of at
least five hundred feet (500') to the sides, rear, and front. The red light or
lantern required under this section shall be in addition to the red rear light
required upon every vehicle. At any other time there shall be displayed at the
extreme rear or front end of such load a red flag or cloth not less than twelve
inches (12") square and so hung that the entire area is visible to the
driver of a vehicle approaching from either direction. Violations of this
section are subject to fines enumerated in §31-41.1-4 of the general laws.
31-24-46. Lights on snow removal equipment. -- (a) The state traffic commission shall
adopt standards and specifications applicable to head lamps, clearance lamps,
identification, and other lamps to be used on snow removal equipment in lieu of
the lamps otherwise required on motor vehicles. The standards and
specifications may permit the use of flashing lights for purposes of
identification of the snow removal equipment.
(b) It is unlawful to operate any snow removal equipment on any highway
unless the design and use of its lamps comply with the standards and
specifications adopted pursuant to this section.
(c) Violations of this section are subject to fines enumerated in
§31-41.1-4 of the general laws.
31-24-47. Regulation and certification of lighting devices. -- (a) The administrator is authorized to
approve or disapprove lighting devices and to issue and enforce regulations
establishing standards and specifications for the approval of such lighting
devices, their installation, and aiming. The regulations shall correlate with,
and so far as possible conform to, the current standards and specifications of
the society of automotive engineers applicable to the equipment.
(b) The administrator is required to approve or disapprove any lighting
device, of a type on which approval is specifically required in this chapter,
within a reasonable time after the device has been submitted.
(c) The administrator is further authorized to set up the procedure to be
followed when any device is submitted for approval.
(d) The administrator upon approving a lamp or device shall issue to the
applicant a certificate of approval together with any instructions determined
by him or her.
(e) The administrator shall publish lists of all lamps and devices by
name and type which have been approved by him or her.
(f) Violations of this section are subject to fines enumerated in
§31-41.1-4 of the general laws.
31-24-48. Revocation of certification of lighting equipment. -- (a) With reason to believe that an approved
device as being sold commercially does not comply with the requirements of this
chapter, and after giving thirty (30) days' notice to the holder of the
certificate of approval for the device, the administrator may conduct a hearing
upon the question of the device's compliance. After the hearing, the
administrator shall determine whether the device meets the requirements. If the
device does not, the administrator shall give notice to the holder of the
certificate of approval.
(b) If, after ninety (90) days after this notice, the holder of the
certificate of approval has failed to satisfy the administrator that the device
as it would then be sold meets the requirements of this chapter, the
administrator shall suspend or revoke the approval. This revocation or
suspension will stand until or unless the device is resubmitted to and retested
by an authorized testing agency and is found to meet this chapter's
requirements. The administrator may require that all the devices sold since the
post-hearing notification be replaced with devices that are in compliance. The
administrator may at the time of the retest purchase in the open market and
submit to the testing agency one or more sets of the approved devices. If the
device then fails to comply, the administrator may refuse to renew the
certificate of approval of the device.
(c) Violations of this section are subject to fines enumerated in
§31-41.1-4 of the general laws.
31-24-49. Approval of lighting equipment required. -- No person shall sell or offer for sale,
equipment for use on a motor vehicle, trailer, semi trailer, any head lamp,
auxiliary or fog lamp, rear lamp, signal lamp, or reflector as required by this
chapter, or parts of any of these which tend to change the original design or
performance, unless of a type which has been submitted to and approved by the
administrator. Violations of this section are subject to fines enumerated in
§31-41.1-4 of the general laws.
31-24-50. Trade-mark or name shown on equipment. -- No person shall sell or offer for sale
for use on a motor vehicle, trailer, or semitrailer, any lamp or device
mentioned in § 31-24-49 which has been approved by the administrator unless the
lamp or device bears on it the trademark or name under which it is approved so
as to be legible when installed. Violations of this section are subject to
fines enumerated in §31-41.1-4 of the general laws.
31-24-51. Mounting and adjustment of lamps -- No person shall use upon any motor
vehicle, trailer, or semitrailer any lamps mentioned in § 31-24-49 unless the
lamps are mounted and adjusted as to focus and aim in accordance with
instructions of the administrator. Violations of this section are subject to
fines enumerated in §31-41.1-4 of the general laws.
31-24-52. Hazard switch for flashing lights. -- (a) All new automobiles and automobiles
for hire sold in this state shall be provided with a hazard switch that
produces a flashing light that will flash as long as the switch is activated.
The switch shall be activated by the operator whenever any vehicle becomes
disabled on any street or highway. The switch may be attached to the
directional signal apparatus.
(b) Nothing in this section shall affect regulations of the interstate
commerce commission.
(c) Violations of this section are subject to fines enumerated in
§31-41.1-4 of the general laws.
31-24-53. Safety lights required on food vending vehicles. -- No person may be engaged as an itinerant
vendor of food items from a motor vehicle operated, or caused to be operated,
upon the public streets or highways unless the motor vehicle is equipped with
two (2) flashing lights: one yellow located on the front bumper, and one red on
the rear bumper. This provision does not apply to those vehicles having
flashing warning lights as standard equipment. When these vehicles stop for
intended itinerary business, they shall continue to flash their lights as a
warning of their position to all approaching vehicular traffic. Violations of
this section are subject to fines enumerated in §31-41.1-4 of the general laws.
31-24-54. Strobe lights on school buses. -- All new school buses, as defined in §
31-1-3, shall at all times be equipped with a rear-viewing, rear-mounted white
flashing strobe light, meeting the following requirements:
(1) A white flashing strobe light will be installed on the roof of a
school bus at a point not to exceed one-third (1/3) the body length forward
from the rear of the roof edge. The strobe light will have a single clear lens
emitting light three hundred sixty degrees (360°) around its vertical axis and
may not extend above the roof more than maximum legal height. The light will
not exceed nine inches (9") in height or nine inches (9") in
diameter. A manual switch and a pilot light will be included to indicate when
light is in operation.
(2) The strobe light will be wired to activate with the amber alternately
flashing signal lamps, continuing through the full loading or unloading cycle,
with an override switch to allow activation of the strobe at any time for use
in inclement weather.
(3) Violations of this section are subject to fines enumerated in
§31-41.1-4 of the general laws.
SECTION 122. Sections 31-25-3, 31-25-4, 31-25-6, 31-25-7, 31-25-9,
31-25-11, 31-25-12, 31-25-12.1, 31-25-13, and 31-25-24 of the General Laws in
Chapter 31-25 entitled "Size, Weight and Load Limits" are hereby
amended to read as follows:
31-25-3. Maximum width -- The total outside width of any vehicle or its load shall not exceed
one hundred two inches (102"). Violations of this section are subject to
fines enumerated in §31-41.1-4 of the general laws.
31-25-4. Maximum height. -- No vehicle or its load shall exceed a height of one hundred
sixty-two inches (162"). Violations of this section are subject to fines
enumerated in §31-41.1-4 of the general laws.
31-25-6. Maximum number and length of coupled vehicles.-- (a) No combination of vehicles coupled
together shall consist of more than three (3) units, a truck-tractor,
semitrailer, and trailer, and combination of vehicles shall not be restricted
in overall length, except that when a truck-tractor, semitrailer, and a trailer
are used in combination, the trailer or semitrailer each shall not exceed
twenty-eight and one-half feet (28', 6"), excluding bumpers and
accessories; provided, that combinations of vehicles consisting of three (3)
units shall be permitted to operate only on the interstate highway system and
on those highways, streets, and roads designated by the director of the Rhode
Island department of administration.
(b) Combinations of vehicles consisting of truck-tractor and semitrailer
coupled together shall not be restricted in overall length, and semitrailers
shall not exceed fifty-three feet (53') in length, excluding bumpers and
accessories. Semitrailers exceeding forty-eight and one-half feet (48', 6")
shall be permitted to operate only on the interstate highway system and on
those highways, streets and roads designated by the director of the Rhode
Island department of administration. Exceptions to the requirements of this
section include the use of a pole trailer and combinations designed to
transport motor vehicles and/or automobiles as authorized in §§ 31-25-7 and
31-25-8 of this chapter. The provision that no combination of vehicles coupled
together shall consist of more than three (3) units shall not apply to vehicles
coupled together by a saddle mount device used to transport motor vehicles in a
drive-away service when no more than three (3) saddle mounts are used, and
equipment used in the combination is approved by part 393.71 of the federal
motor carrier safety regulations (49 CFR 393.71), and safety regulations of the
division of motor vehicles of the department of administration of the state of
Rhode Island. Any owner or operator found deviating from the approval permitted
routes shall be fined a minimum mandatory fine of five hundred dollars ($500),
but not more than one thousand dollars ($1,000).
(c) The distance from the kingpin of the trailer to the center of the
rear axle may not exceed forty-one feet (41').
(d) Fifty-three foot (53') trailers shall be equipped with a rear end
protection device of substantial construction consisting of a continuous
lateral beam extending to within four inches (4") of the lateral
extremities of the trailer, and located not more than twenty-two inches
(22") from the surface of the road as measured with the vehicle empty and
on level surface.
(e) [Deleted by P.L. 2001, ch. 86, § 86.]
(e) Violations of this section are subject to fines enumerated in
§31-41.1-4 of the general laws.
31-25-7. Front and rear extensions of load. -- Subject to the provisions of this chapter
limiting the length of vehicles and loads, the load upon any vehicle operated
alone or the load upon the front vehicle of a combination of vehicles, shall
not extend more than three feet (3') beyond the foremost part of the vehicle,
and the load upon any vehicle operated alone or the load upon the rear vehicle
of a combination of vehicles, shall not extend more than six feet (6') beyond
the rear of the bed or body of the vehicle. Violations of this section are
subject to fines enumerated in §31-41.1-4 of the general laws.
31-25-9. Prevention of leakage of load. -- No vehicles shall be driven or moved on
any highway unless the vehicle is so constructed or loaded as to prevent any of
its load from dropping, sifting, leaking, or escaping from it. However, sand
may be deliberately dropped for the purpose of securing traction, or water or
another substance may be sprinkled on a roadway in cleaning or maintaining the
roadway. Violations of this section are subject to fines enumerated in
§31-41.1-4 of the general laws.
31-25-11. Connections between coupled vehicles. -- When one vehicle is towing another the
draw-bar or other connection shall be of sufficient strength to pull the weight
towed, and shall not exceed fifteen feet (15') in its span from one vehicle to
the other. The connection may be longer when spanning two (2) vehicles
transporting poles, pipe, machinery, or other objects which cannot readily be
dismantled. Violations of this section are subject to fines enumerated in
§31-41.1-4 of the general laws.
31-25-12. Flags on tow chains. -- When one vehicle is towing another and the connection consists of a
chain, rope, or cable, there shall be displayed upon the connection a white
flag or cloth not less than twelve inches (12") square. Violations of this
section are subject to fines enumerated in §31-41.1-4 of the general laws.
31-25-12.1. Vehicles to be towed in right lane. -- (a) A tow truck or other vehicle towing
another vehicle, except those vehicles designed to be in combination, when upon
any public highway divided into multiple lanes for travel in the same
direction, may travel only in the right lane of a two (2) lane highway, or in
the two (2) right lanes of a three (3) or more lane highway.
(b) Any person who violates the provisions of this section, upon
conviction, shall be fined: (1) twenty-five dollars ($25.00) fifty
dollars ($50.00) for the first offense, ; (2) fifty dollars ($50.00)
seventy five dollars ($75.00) for the second offense; and (3) one hundred
dollars ($100) for the third and each subsequent offense.
31-25-13. Axle load limit. -- (a) The gross weight imposed on the highway by the wheels of any one
axle of a vehicle shall not exceed twenty-two thousand four hundred pounds
(22,400 lbs.).
(b) For the purposes of this chapter, an axle load shall be defined as
the total load transmitted to the road by all wheels whose centers are included
between two (2) parallel transverse vertical planes forty inches (40")
apart, extending across the full width of the vehicle.
(c) [Deleted by P.L. 2001, ch. 86, § 86.] Violations of this
section are subject to fines enumerated in §31-41.1-4 of the general laws.
31-25-24. Carrying and inspection of excess load permits. -- Every permit issued under §§ 31-25-21 -
31-25-23 shall be carried in the vehicle to which it refers and shall be open
to inspection by any proper officer or authorized agent of the authority
granting the permit. No person shall violate any of the terms or conditions of
the special permit. Violations of this section are subject to fines enumerated
in §31-41.1-4 of the general laws.
SECTION 123. Section 31-27-2.3 of the General Laws in Chapter 31-27
entitled "Motor Vehicle Offenses" is hereby amended to read as
follows:
31-27-2.3. Revocation of license upon refusal to submit to
preliminary breath test. -- --
(a) When a law enforcement officer has reason to believe that a person is
driving or in actual physical control of any motor vehicle in this state while
under the influence of alcohol, the law enforcement officer may require the
person to submit to a preliminary breath analysis for the purpose of
determining the person's blood alcohol content. The breath analysis must be
administered immediately upon the law enforcement officer's formulation of a
reasonable belief that the person is driving or in actual control of a motor
vehicle while under the influence of alcohol, or immediately upon the stop of
the person, whichever is later in time. Any chemical breath analysis required
under this section must be administered with a device and in a manner approved
by the director of the department of health for that purpose. The result of a
preliminary chemical breath analysis may be used for the purpose of guiding the
officer in deciding whether an arrest should be made. When a driver is arrested
following a preliminary breath analysis, other tests may be taken pursuant to §
31-27-2.1. The results of a preliminary breath test may not be used as evidence
in any administrative or court proceeding involving driving while intoxicated
or refusing to take a breathalyzer test, except as evidence of probable cause
in making the initial arrest.
(b) If a person refuses, upon a lawful request of a law enforcement
officer, to submit to a test under subsection (a) of this section, that person
shall be guilty of an infraction and shall be subject to the penalty provided
in § 31-41-4 31-41.1-4 . However, it shall be a defense to a charge of
refusing a validly requested preliminary breath analysis that the medical
condition of a person precluded the giving of that test.
SECTION 124. Section 31-33-2 of the General laws in Chapter 31-33
entitled "Safety Responsibility Violations" is hereby amended to read
as follows:
31-33-2. Failure to file accident report. -- Failure to report an accident as
required in § 31-33-1 shall be punished by a fine not in excess of
twenty-five dollars ($25.00) of fifty dollars ($50.00), and the division
shall suspend the license or the nonresident's operating privilege of the
person failing to make report until a report has been filed, and for any
further period not to exceed thirty (30) days that the division may fixes.
SECTION 125. Sections 31-38-3 and 31-38-4 of the General Laws in Chapter
31-38 entitled "Inspection of Motor Vehicles" are hereby amended to
read as follows:
31-38-3. Owners and drivers to comply with inspection laws. -- (a) No seller at retail or person driving
a vehicle shall refuse to submit a vehicle to an inspection and test when
required by § 31-38-2.
(b) Every seller at retail, owner, or driver shall comply upon receipt
with any notice issued under § 31-38-2, shall approve that notice, and shall
forward it within five (5) days to the department of administration. In the
event of noncompliance with this subsection, the vehicle shall not be operated
on any highways of this state.
(c) Any vehicle which is found to be too hazardous to permit it to be
sold, or to be driven from the place of inspection, owing to the unsafe
condition of its brakes, steering, or other equipment shall not be permitted to
be operated under its own power. In this case the registration shall be
immediately suspended by the department of administration, and the plates and
certificates shall be returned immediately to the department of administration.
(d) The seller at retail or owner of a vehicle may choose any place at
which to obtain repairs or adjustments that inspection indicates are necessary,
but the vehicle shall not be operated upon the highways of this state unless
approval is obtained.
(e) Violations of this section are subject to fines enumerated in
§31-41.1-4 of the general laws.
31-38-4. Director of department of administration to require
periodic inspection. -- (a) (1)
At least once but not more than twice each year, or on the schedule defined in
chapter 47.1 of this title, the director of administration shall require that
every vehicle, trailer, semitrailer, and pole trailer registered in this state,
or upon a retail seller's premise, be inspected and that an official
certificate of inspection and approval be obtained for the vehicle. The
director of administration further shall require that the first inspection of
any new motor vehicle occur within two (2) years from the date of purchase or
before the vehicle accumulates twenty-four thousand (24,000) miles whichever
occurs first.
(2) The inspections shall be made and the certificates obtained as to the
mechanism, brakes, and equipment of the vehicle as is designated by the
director of department of administration.
(3) The director of the department of administration is authorized to
make any rules and regulations necessary for the administration and enforcement
of this chapter. These may include, but are not limited to, upgraded standards
of operation and upgraded standards for mechanical testing equipment. The
director may also designate a period or periods of time during which sellers at
retail and owners of any vehicles shall display upon their vehicles
certificates of inspection and approval, or shall produce those certificates
upon the demand of any proper officer or employee of the department of
administration designated by the director of the department of administration.
(b) The director of the department of administration may authorize the
acceptance in this state of a certificate of inspection and approval issued in
another state having an inspection law similar to this chapter, and may extend
the time within which a certificate is obtainable.
(c) The director of the department of administration, or the director's
designee, may suspend the registration of any vehicle determined to be in a
condition that would make it a menace to safety, which after notice and demand
is not equipped as required by this chapter, or for which a required certificate
of inspection and approval has not been obtained.
(d) The director of the department of administration shall provide by
regulations for a staggered inspection system.
(e) Violations of this section are subject to fines enumerated in §31-41.1-4
of the general laws.
SECTION 126. Sections 31-45-1 and 31-45-5 of the General Laws in Chapter
31-45 entitled "Noise Limits for Motor Vehicles" are hereby amended
to read as follows:
31-45-1. Noise limits.
-- (a) 'dbA' means, as used in this section, decibels measured with a
calibrated sound level meter weighted to the 'A' scale.
(b) The noise limit is based on a distance of fifty feet (50') from the
center of the lane of travel within the speed limit. In speed zones of
thirty-five miles per hour (35 mph) or less, it shall not be more than
eighty-six (86) dbA. In speed zones of more than thirty-five miles per hour (35
mph), it shall not be more than ninety (90) dbA.
(c) No person shall operate or allow to be operated a motor vehicle, at
any time, or under any condition of grade, load, acceleration, or deceleration,
in a manner that exceeds the noise limit.
(d) Violations of this section are subject to fines enumerated in
§31-41.1-4 of the general laws.
31-45-5. Motor vehicle radios, stereos and audio systems. -- It is unlawful for any motor vehicle
with a radio, stereo, or audio system to produce sound which exceeds those
limits specified in this chapter. Police cars, ambulances, and fire engines are
not subject to this section. Local cities and towns may, at their discretion,
issue temporary exemption by special permit upon a showing of good cause.
Violations of this section are subject to fines enumerated in §31-41.1-4 of the
general laws.
SECTION 127. Section 31-23-51 of the General Laws in Chapter 31-23
entitled "Equipment and Accessories Generally" is hereby amended to
read as follows:
31-23-51. Earphones and headsets prohibited. -- A person shall not drive a bicycle or
motor vehicle upon any highway while wearing earphones or a headset. Any person
who violates this section shall be fined: (1) the sum of thirty-five dollars
($35.00) fifty dollars ($50.00) for the first offense, ; (2) seventy
dollars ($70.00) for the second offense; and (3) one hundred forty dollars
($140) for the third and each subsequent offense.
SECTION 128. Section
37-15-7 of the General Laws in Chapter 37-15 entitled "Litter Control and
Recycling" is hereby amended to read as follows:
37-15-7. Penalties. -- (a) Any person convicted of a first
violation of this chapter shall, except where a penalty is specifically set
forth, be subject to a fine of not less than thirty dollars ($30) fifty
dollars ($50.00) nor more than five hundred dollars ($500). In addition to or
in lieu of the fine imposed hereunder, the person so convicted may be ordered
to pick up litter for not less than two (2), nor more than twenty-five (25)
hours.
(b) Any person convicted of a second or subsequent violation of this
chapter shall, except where a penalty is specifically set forth, be subject to
a fine of not less than three hundred dollars ($300) nor more than five hundred
dollars ($500). In addition to or in lieu of the fine imposed upon a second or
subsequent violation of this chapter, the person so convicted may be ordered to
pick up litter for not less than four (4), nor more than fifty (50) hours.
(c) Jurisdiction to punish violators of the provisions of this chapter is
conferred on the traffic tribunal.
(d) Any person convicted of a violation of this chapter shall, in
addition to all other penalties, be liable for the removal or cost of removal
of all litter illegally disposed of by that person. The court of
administrative adjudication traffic tribunal may hold the registration of
any vehicle owned by the violator and used in the act of littering until the
aforementioned liability is satisfied.
(e) The funds received by a state law enforcement agency shall be
deposited as general revenues.
(f) Penalties of thirty dollars ($30.00) fifty dollars ($50.00)
for violations of § 37-15-7 may be disposed of without the necessity of
personally appearing before the traffic tribunal. Said penalty may be handled
administratively by mailing a check or money order, together with properly
executed form provided to the appropriate address as set forth in the summons
issued by the enforcing agent.
SECTION 129. Section 39-12-26 of the General Laws in Chapter 39-26
entitled "Motor Carriers of Property" is hereby amended to read as
follows:
39-12-26. Registration and identification of vehicles. -- Every interstate motor carrier engaged
in the transportation of property for compensation over the highways of this
state, subject to the provisions of this chapter, shall apply to the
administrator for the issuance of a vehicle identification device for the
registration and identification of vehicles. The application shall be
accompanied by a filing fee in the amount of eight dollars ($8.00) for each
identification device for which an application is made. All intrastate carriers
shall be assessed twenty dollars ($20.00) for each identification device for
which an application is made. All revenues received shall be deposited as
general revenues. The identification device shall be furnished annually to
every carrier whose duty it shall be to apply therefor. It shall be unlawful for
any motor vehicle to be engaged in transporting property for compensation in
either intrastate or interstate commerce without the owner thereof having
applied for and received the required identification device, unless the vehicle
is exempted from the provisions of this chapter. Each identification device
shall be accompanied by a registration card issued by the administrator which
shall be in the possession of the vehicle's driver, when the vehicle is
operating. Transfers of the identification device from one vehicle to another
are hereby prohibited unless authorized by the administrator. The
administrator, in his or her discretion, may refuse to reissue the
identification device to the holder of any certificate, permit, or permit of
registration, pending any complaint or hearing upon the question of revocation
or suspension or in which such question is involved. The administrator shall
prescribe reasonable rules and regulations governing the registration and
identification of motor vehicles authorized for operation under this chapter.
Violations of this section are subject to fines enumerated in §31-41.1-4 of the
general laws.
SECTION 130. Section 22-2-5 of the General Laws in Chapter 22-5 entitled
"Composition of House of Representatives" is hereby repealed in its
entirety.
22-2-5. Construction of chapter. - This chapter shall be liberally construed to
effectuate the purposes thereof and to apportion the state into representative
districts in compliance with the requirements of the United States Constitution.
It is intended that the representative districts described herein completely
encompass all the area within the state and contain all the citizens resident
in the state. It is further intended that the apportionment and districting
provided for in this chapter result in the creation of districts containing
substantially equal population. It is also intended that no representative
district shall include any of the area included within the description of any
other representative district. If the districts described in this chapter do
not carry out the purposes thereof because of patent unintentional omissions,
duplications, overlapping area, erroneous nomenclature, faulty description of
boundary lines, street closings, changes in names of streets or of public
places, alteration of the courses of rivers or streams, the filling in of lands
under water or changes in shore lines due to accretion, the secretary of state
is hereby authorized and empowered to correct such omissions, overlaps,
erroneous nomenclature, or other defects in the description of districts so as
to accomplish the purposes and objectives of this chapter. In making such
corrections, the secretary of state shall be guided by the following standards:
(a) gaps in the
description of any district shall be completed in a manner which results in a
total description of adjacent districts.
(b) areas included within the descriptions of
more that one district shall be allocated in the district having the lowest
population.
(c) areas not included within the
descriptions of any district shall be allocated to the adjacent district having
the lowest population.
SECTION
131. Section 22-4-3 of the General Laws as enacted in P.L 1971, Chapter 3,
Section 1 is hereby repealed in its entirety:
22-4-3. Exemption from attendance at court. - Every member of the
general assembly, shall, during the session of the general assembly, be exempt
from attendance at the trial of any action, civil or criminal, in any of the
courts of this state, either as attorneys or as witnesses or parties; and all
process served contrary hereto shall be void.
SECTION 132. Section 27-20-21 of the General Laws in Chapter 27-20 entitled "Nonprofit Medical Service Corporations" is hereby amended to read as follows:
27-20-21. Nonprofit medical service corporation
assessment. -- (a)
Notwithstanding any other provisions of law, each domestic nonprofit medical
service corporation shall be charged an assessment to partially support the activities
of the division of insurance in the department of business regulations.
(b) The assessment
referred to in subsection (a) shall be calculated in the same manner as set
forth in § 27-1-41 [Repealed.].
(c) (b) The minimum assessment charged
shall be the greater of the sum determined by subsection (b) or one
thousand dollars ($1,000).
SECTION
133. Section 27-20.1-10 of the General Laws in Chapter 27-20.1 entitled
"Nonprofit Dental Service Corporations" is hereby amended to read as
follows:
27-20.1-10. Nonprofit
dental service corporation assessment. -- (a) Notwithstanding any
other provisions of law, each domestic nonprofit dental service corporation
shall be charged an assessment to partially support the activities of the
division of insurance in the department of business regulation.
(b) The assessment
referred to in subsection (a) of this section shall be calculated in the
same manner as set forth in § 27-1-41 [Repealed.].
(c) (b) The minimum assessment charged
shall be the greater of the sum determined by subsection (b) or one
thousand dollars ($1,000).
SECTION 134. Section 27-20.2-10 of the General Laws in Chapter 27-20.2
entitled "Nonprofit Optometric Service Corporations" is hereby
amended to read as follows:
27-20.2-10. Nonprofit
optometric service corporation assessment. -- (a) Notwithstanding
any other provisions of law, each domestic nonprofit optometric service
corporation shall be charged an assessment to partially support the activities
of the division of insurance in the department of business regulation.
(b) The assessment
referred to in subsection (a) of this section shall be calculated in the
same manner as set forth in § 27-1-41 [Repealed.].
(c) (b) The minimum assessment charged
shall be the greater of the sum determined by subsection (b) or one
thousand dollars ($1,000).
SECTION
135. Section 27-20.3-10 of the General Laws in Chapter 27-20.3 entitled
"Nonprofit Legal Service Corporations" is hereby amended to read as
follows:
27-20.3-10. Nonprofit legal
service corporation assessment.
-- (a) Notwithstanding any other
provisions of law, each domestic nonprofit legal service corporation shall be
charged an assessment to partially support the activities of the division of
insurance in the department of business regulation.
(b) The assessment
referred to in subsection (a) of this section shall be calculated in the
same manner as set forth in § 27-1-41 [Repealed.].
(c) (b) The minimum assessment charged
shall be the greater of the sum determined by subsection (b) or one
thousand dollars ($1,000).
SECTION 136. This act shall take effect upon
its passage; provided, however, that the provisions in Sections 20 and 21 shall
first be effective in connection with elections to be held on or subsequent to
the first day of September, 2002, and for the purpose of greater clarity, the
first election under the provisions of this act for congress, senator and
representative from each of the senatorial, congressional or representative
districts hereby created, shall be held on the Tuesday next after the first
Monday in November, 2002, and the first primary election under the provisions
of this act for nomination of candidates for congress, senator and for
representative from each of said representative districts shall be held on the
second Tuesday after the first Monday in September, 2002. Any primary or
special election held prior to the first day of September, 2002, shall be
conducted under the laws as they existed prior to the passage of this act.