Chapter 121 |
2019 -- H 6184 SUBSTITUTE A AS AMENDED Enacted 07/08/2019 |
A N A C T |
RELATING TO INSURANCE -- LIFE INSURANCE POLICIES AND RESERVES |
Introduced By: Representatives Caldwell, Speakman, Mendez, Vella-Wilkinson, and |
Date Introduced: June 05, 2019 |
It is enacted by the General Assembly as follows: |
SECTION 1. Chapter 27-4 of the General Laws entitled "Life Insurance Policies and |
Reserves" is hereby amended by adding thereto the following section: |
27-4-1.1. Denial of applicant based on naloxone prescription. |
(a) No life insurance company organized or doing business within this state shall: |
(1) Deny the application of an individual seeking coverage for any life insurance policy |
pursuant to this chapter solely on the basis that the applicant has a prescription to carry or possess |
the drug naloxone; |
(2) Otherwise discriminate in the offering, issuance, cancellation, amount of coverage, |
price, or any other condition of a life insurance policy based solely and without any additional |
actuarial justification upon the fact that an individual has been issued a prescription for naloxone |
or has purchased naloxone. |
(b) Any denial of insurance coverage in violation of the provisions of this section: |
(i) Shall be void; |
(ii) The insurer shall reopen the application and underwriting process for consideration of |
coverage and the life insurance company shall be deemed to have provided coverage to the |
eligible person retroactive to the date of the initial application. |
SECTION 2. Section 27-4.8-1 of the General Laws in Chapter 27-4.8 entitled "Group |
Life Insurance" is hereby amended to read as follows: |
27-4.8-1. Group life insurance definitions. |
Except as provided in ยง 27-4.8-2, no policy of group life insurance shall be delivered in |
this state unless it conforms to one of the following descriptions: |
(1) A policy issued to an employer, or to the trustees of a fund established by an |
employer, which employer or trustees shall be deemed the policyholder, to insure employees of |
the employer for the benefit of persons other than the employer, subject to the following |
requirements: |
(i) The employees eligible for insurance under the policy shall be all of the employees of |
the employer, or all of any class or classes thereof. The policy may provide that the term |
"employees" shall include the employees of one or more subsidiary corporations, and the |
employees, individual proprietors, and partners of one or more affiliated corporations, |
proprietorships, or partnerships if the business of the employer and of the affiliated corporations, |
proprietorships, or partnerships is under common control. The policy may provide that the term |
"employees" shall include the individual proprietor or partners if the employer is an individual |
proprietorship or partnership. The policy may provide that the term "employees" may include |
retired employees, former employees, and directors of a corporate employer. A policy issued to |
insure the employees of a public body may provide that the term "employees" shall include |
elected or appointed officials. |
(ii) The premium for the policy shall be paid either from the employer's funds or from |
funds contributed by the insured employees, or from both. Except as provided in paragraph (iii) |
subsection (1)(iii), a policy on which no part of the premium is to be derived from funds |
contributed by the insured employees shall insure all eligible employees, except those who reject |
the coverage in writing. |
(iii) An insurer may exclude or limit the coverage on any person as to whom evidence of |
individual insurability is not satisfactory to the insurer; provided, however, that any exclusion or |
limitation shall not be based solely on the fact that the person has a prescription to carry or |
possess the drug naloxone. |
(2) A policy issued to a creditor or its parent holding company or to a trustee or trustees |
or agent designated by two (2) or more creditors, which creditor, holding company, affiliate, |
trustee, trustees, or agent shall be deemed the policyholder, to insure debtors of the creditor or |
creditors subject to the following requirements: |
(i) The debtors eligible for insurance under the policy shall be all of the debtors of the |
creditor or creditors, or all of any class or classes thereof. The policy may provide that the term |
"debtors" shall include: |
(A) Borrowers of money or purchasers or lessees of goods, services, or property for |
which payment is arranged through a credit transaction; |
(B) The debtors of one or more subsidiary corporations; and |
(C) The debtors of one or more affiliated corporations, proprietorships, or partnerships if |
the business of the policyholder and of the affiliated corporations, proprietorships, or partnerships |
is under common control. |
(ii) The premium for the policy shall be paid either from the creditor's finds funds, or |
from charges collected from the insured debtors, or from both. Except as provided in paragraph |
(3) subsection (2)(iii), a policy on which no part of the premium is to be derived from the funds |
contributed by insured debtors specifically for their insurance shall insure all eligible debtors. |
(iii) An insurer may exclude any debtors as to whom evidence of individual insurability is |
not satisfactory to the insurer; provided, however, that any exclusion shall not be based solely on |
the fact that the person has a prescription to carry or possess the drug naloxone. |
(iv) The amount of the insurance on the life of any debtor shall at no time exceed the |
greater of the scheduled or actual amount of unpaid indebtedness to the creditor, except that |
insurance written in connection with open-end credit having a credit limit exceeding ten-thousand |
dollars ($10,000) may be in an amount not exceeding the credit limit. |
(v) The insurance may be payable to the creditor or any successor to the right, title, and |
interest of the creditor. The payment shall reduce or extinguish the unpaid indebtedness of the |
debtor to the extent of the payment and any excess of the insurance shall be payable to the estate |
of the insured. |
(vi) Notwithstanding the provisions of the above subsections, insurance on agricultural |
non-decreasing or level term plan. Insurance on educational credit transaction commitments may |
be written up to the amount of the loan commitment less the amount of any repayments made on |
the loan. Notwithstanding the provisions of the above subsections, insurance on agricultural |
credit transaction commitments may be written up to the amount of the loan commitment |
on a non-decreasing or level term plan. Insurance on educational credit transaction |
commitments may be written up to the amount of the loan commitment less the amount of |
any repayments made on the loan. |
(3) A policy issued to a labor union, or similar employee organization, which shall be |
deemed to be the policyholder, to insure members of the union or organization for the benefit of |
persons other than the union or organization or any of its officials, representatives, or agents, |
subject to the following requirements: |
(i) The members eligible for insurance under the policy shall be all of the members of the |
union or organization, or all of any class or classes thereof. |
(ii) The premium for the policy shall be paid either from funds of the union or |
organization, or from funds contributed by the insured members specifically for their insurance, |
or from both. Except as provided in paragraph (iii) subsection (3)(iii), a policy on which no part |
of the premium is to be derived from funds contributed by the insured members specifically for |
their insurance shall insure all eligible members, except those who reject the coverage in writing. |
(iii) An insurer may exclude or limit the coverage on any persons as to whom evidence of |
individual insurability is not satisfactory to the insurer; provided, however, that any exclusion or |
limitation shall not be based solely on the fact that the person has a prescription to carry or |
possess the drug naloxone. |
(4) A policy issued to a trust or to the trustees of a fund established or adopted by two (2) |
or more employers, or by one or more labor unions or similar employee organizations, or by one |
or more employers and one or more labor unions or similar employee organizations, which trust |
or trustees shall be deemed the policyholder, to insure employees of the employers or members of |
the unions or organizations for the benefit of person other than the employers or the unions or |
organizations, subject to the following requirements: |
(i) The persons eligible for insurance shall be all of the employees of the employers or all |
of the members of the unions or organizations, or all of any class or classes thereof. The policy |
may provide that the term "employees" shall include the employees of one or more subsidiary |
corporations, and the employees, individual proprietors, and partners of one or more affiliated |
corporations, proprietorships, or partnerships if the business of the employer and of the affiliated |
corporations, proprietorships, or partnerships is under common control. The policy may provide |
that the term "employees" shall include the individual proprietor or partners if the employer is an |
individual proprietorship or partnership. The policy may provide that the term "employees" shall |
include retired employees, former employees, and directors of a corporate employer. The policy |
may provide that the term "employees" shall include the trustees or their employees, or both, if |
their duties are principally connected with the trusteeship. |
(ii) The premium for the policy shall be paid from funds contributed by the employer or |
employers of the insured persons, or by the union or unions or similar employee organizations, or |
by both, or from funds contributed by the insured persons or from both the insured persons and |
the employers or unions or similar employee organizations. Except as provided in paragraph (iii) |
subsection (4)(iii), a policy on which no part of the premium is to be derived from funds |
contributed by the insured persons specifically for their insurance shall insure all eligible persons, |
except those who reject the coverage in writing. |
(iii) An insurer may exclude or limit the coverage on any person as to whom evidence of |
individual insurability is not satisfactory to the insurer; provided, however, that any exclusion or |
limitation shall not be based solely on the fact that the person has a prescription to carry or |
possess the drug naloxone. |
(5) A policy issued to an association or to a trust or to the trustees of a fund established, |
created, or maintained for the benefit of members of one or more associations. The association or |
associations shall have at the outset a minimum of one hundred (100) persons; shall have been |
organized and maintained in good faith for purposes other than that obtaining insurance; shall |
have been in active existence for at least two (2) years; and shall have a constitution and by-laws |
bylaws which provides that: |
(i) The association or associations hold regular meetings not less than annually to further |
purposes of the members,; |
(ii) Except for credit unions, the association or associations, collect dues or solicit |
contributions from members,; and |
(iii) The members have voting privileges and representation on the governing board and |
committees. The policy shall be subject to the following requirements: |
(A) The policy may insure members of the association or associations, employees |
thereof, or employees of members, or one or more of the preceding or all of any class or classes |
thereof for the benefit of persons other than the employee's employer. |
(B) The premium for the policy shall be paid from funds contributed by the association or |
associations, or by employer members, or by both, or from funds contributed by the covered |
persons or from both the covered persons and the association, associations, or employer members. |
(C) Except as provided in paragraph (D) subsection (5)(iii)(D), a policy on which no part |
of the premium is to be derived from funds contributed by the covered persons specifically for the |
insurance shall insure all eligible persons, except those who reject the coverage in writing. |
(D) An insurer may exclude or limit the coverage on any person as to whom evidence of |
individual insurability is not satisfactory to the insurer; provided, however, that any exclusion or |
limitation shall not be based solely on the fact that the person has a prescription to carry or |
possess the drug naloxone. |
(6) A policy issued to a credit union or to a trustee or trustees or agent designated by two |
(2) or more credit unions, which credit union, trustee, trustees, or agent shall be deemed |
policyholder, to insure members of the credit union or credit unions for the benefit of persons |
other than the credit union or credit unions, trustee or trustees, or agent or any of their officials, |
subject to the following requirements: |
(i) The members eligible for insurance shall be all of the members of the credit union or |
credit unions, or all of any class or classes thereof. |
(ii) The premium for the policy shall be paid by the policyholder from the credit union's |
funds and, except as provided in paragraph (iii) subsection (6)(iii), shall insure all eligible |
members. |
(iii) An insurer may exclude or limit the coverage on any member as to whom evidence |
of individual insurability is not satisfactory to the insurer; provided, however, that any exclusion |
or limitation shall not be based solely on the fact that the person has a prescription to carry or |
possess the drug naloxone. |
SECTION 3. This act shall take effect upon passage and shall apply to any application for |
life insurance filed on or after the effective date of this act. |
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LC002568/SUB A/2 |
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