2024 -- S 2982

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LC005944

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2024

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A N   A C T

RELATING TO INSURANCE -- LIFE INSURANCE POLICIES AND RESERVES

     Introduced By: Senator Roger Picard

     Date Introduced: April 16, 2024

     Referred To: Senate Commerce

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 27-4-1.1 of the General Laws in Chapter 27-4 entitled "Life Insurance

Policies and Reserves" is hereby amended to read as follows:

     27-4-1.1. Denial of applicant based on naloxone prescription. Denial of applicant

based on an opioid antagonist 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 an opioid antagonist as defined in § 16-21-35(a);

     (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 or has purchased an opioid antagonist as defined in § 16-21-35(a).

     (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 § 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 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 an opioid antagonist as defined in § 16-21-35(a).

     (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;

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     (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 funds, or from

charges collected from the insured debtors, or from both. Except as provided in 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 an opioid antagonist

as defined in § 16-21-35(a).

     (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

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 subsection (3)(iii), a policy on which no part of the premium is to be derived

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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 an opioid antagonist as defined in § 16-21-35(a).

     (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 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 an opioid antagonist as defined in § 16-21-35(a).

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     (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 obtaining insurance; shall have been

in active existence for at least two (2) years; and shall have a constitution and bylaws that provide

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 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 an opioid antagonist as defined in § 16-21-35(a).

     (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 subsection (6)(iii), shall insure all eligible members.

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     (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 an opioid antagonist as defined in § 16-21-35(a).

     SECTION 3. This act shall take effect upon passage.

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LC005944

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO INSURANCE -- LIFE INSURANCE POLICIES AND RESERVES

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     This act would replace the term "the drug naloxone" with the term "opioid antagonist" in

chapters regulating life insurance policies and group life insurance policies.

     This act would take effect upon passage.

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