It is enacted by the General Assembly as follows:

SECTION 1. The text of statutes herein appended is hereby enacted together with the amendments and corrections hereafter made, as titles 11 through 14, titles 25 through 27, titles 29 through 32, inclusive, of the general laws of 1956 (Reenactments of 1981, 1989, 1982) Reenactment of 1994.

The phrase "text" as used herein does not include (1) printers' reference lines appearing at the top or bottom of any galley proof; or (2) title or chapter heading (except the numbers of said titles and chapters); or (3) tables of contents appearing at the beginning of the titles and chapters; or (4) boldface captions appearing at the beginning of sections (except the numbers of said sections), except insofar as said title or chapter headings or boldface captions are necessary for clarification of any statutory text.

SECTION 2. Chapter 43-4 of the General Laws entitled "Effect of General Laws" is hereby amended by adding thereto the following section:

{ADD 43-4-15.20. Repeal of general laws by 1994 reenactment [effective December 31, 1994]. -- ADD} {ADD Titles 11 through 14, titles 25 through 27, titles 29 through 32, inclusive, of the general laws of 1956 as enacted by chapter 34 of the public laws, 1957, and heretofore reenacted, are hereby repealed, subject to the preceeding sections of this chapter. ADD}

SECTION 3. All laws passed at this January session of the general assembly in the year 1994 shall be and remain in full force and effect notwithstanding the enactment of titles 11 through 14, titles 25 through 27, titles 29 through 32, inclusive, of the general laws, by this act; and all laws passed at this January session 1994, affecting titles 11 through 14, titles 25 through 27, titles 29 through 32, inclusive, of the general laws, shall be construed and deemed to be in amendment of or in addition to said titles 11 through 14, titles 25 through 27, titles 29 through 32, inclusive, of the general laws as enacted by this act.

SECTION 4. Sections 11-19-19 and 11-19-26 of the General Laws in Chapter 11-19 entitled "Gambling and Lotteries" is hereby amended to read as follows:

{ADD 11-19-19. Revocation of license of gambling place. -- ADD} If such person {ADD in violation of section 11-19-18 ADD} be a tavernkeeper, innholder, retailer or keeper of any other house or place of public resort which is licensed, his license shall in addition be declared null and void by the court in which he shall be convicted.

{ADD 11-19-26. Destruction of apparatus seized. -- ADD} Upon final judgment of forfeiture of such implements or apparatus {ADD pursuant to section 11-19-24 ADD} , either in the original or appellate court, or upon forfeiture of the recognizance given by the claimant to prosecute his appeal according to law, the court shall order in writing such implements and apparatus to be destroyed by any officer authorized to serve the criminal process of such court, which officer shall make return of his doings upon such order to such court as in other cases.

SECTION 5. Section 11-44-3 of the General Laws in Chapter 11-44 entitled "Trespass and Vandalism" is hereby amended to read as follows:

{ADD 11-44-3. Arrest and detention of persons taking fruits and vegetables. -- ADD} Every sheriff, deputy sheriff, town sergeant, constable, or police officer, who shall discover any person or persons in the act of taking and carrying away any growing fruit or vegetables as {DEL aforesaid DEL} {ADD prohibited by section 11-44-2 ADD} , shall arrest such person or persons and detain him or them in custody until a complaint can be made against him or them for the offense for which he or they shall have been arrested and until he or they be taken on a warrant issued upon such complaint; provided, that such arrest and detention without a warrant shall not continue longer than the space of twenty-four (24) hours.

SECTION 6. Section 11-47-21 of the General Laws in Chapter 11-47 entitled "Weapons" is hereby amended to read as follows: longer than the space of twenty-four (24) hours.

{ADD 11-47-21. Restrictions on possession or carrying of explosives or noxious substances. -- ADD} Any person, except a member of the state police, the sheriff or his deputies, or a member of the police force of any city or town, or a member of the army, navy, air force, or marine corps of the United States, or of the national guard or organized reserves when on duty, who possesses, or carries on or about his person or in a vehicle, a bomb or bombshell, except for blasting or other commercial use, or who, with intent to use the same unlawfully against the person or property of another, possesses or carries any explosive substance, or any noxious liquid, gas or substance, shall be guilty of a violation of this chapter and punished as {DEL hereinafter DEL} provided {DEL . DEL} {ADD in section 11-47-26. ADD}

SECTION 7. Sections 12-29-8 and 12-29-9 of the General Laws in Chapter 12-29 entitled "Domestic Violence Prevention Act" is hereby amended to read as follows:

{ADD 12-29-8. Domestic violence report. -- ADD} (A) A law enforcement officer who responds to or investigates a domestic violence incident shall complete a domestic violence report, whether or not an arrest occurs.

(B) For the purpose of establishing accurate data on the extent and severity of domestic violence in the state and on the degree of compliance with the requirements of section 12-29-3, the domestic violence training and monitoring unit of the court system shall prescribe a form for making domestic violence reports. The form shall include but is not limited to the following information: (i) name of the parties; (ii) relationship of the parties; (iii) sex of the parties; (iv) date of birth of the parties; (v) time and date of the incident; (vi) whether children were involved or whether the alleged act of domestic violence was committed in the presence of children; (vii) type and extent of the alleged abuse; (viii) number and types of weapons involved; (ix) existence of any prior court order; (x) any other data that may be necessary for a complete analysis of all circumstances leading to the arrest.

(C) Each police department shall forward copies of the reports to the domestic violence training and monitoring unit of the court system at the end of each month. {DEL The unit shall tabulate and compile data from the domestic violence reports and report such compilation annually for the five (5) years following October 1, 1988 to the governor and the general assembly. DEL}

{ADD 12-29-9. Medical data collection reports. -- ADD} (A) For the purpose of documenting incidents of family violence resulting in injuries treated at medical facilities or by medical providers and of providing statistically valid information on the extent of family violence, the domestic violence training and monitoring unit of the court system shall prescribe a form for making medical data collection reports. The form shall include, but not be limited to the following: (i) relationship of the parties; (ii) sex of the parties; (iii) date of birth of the parties; (iv) time and date of the incident; (v) whether the incident is verified by the victim; (vi) type of injuries; (vii) whether medical attention or hospitalization is required; (viii) whether the victim has previously sustained injuries as a result of family violence; (ix) action taken; (x) source of the report; (xi) address of the reporter. The report shall not contain the name of the parties nor any other identifying information.

(B) A medical data collection report shall be complete for any victim being treated for injuries which the victim states resulted from domestic violence or which the mandated medical provider has reasonable cause to believe resulted from domestic violence.

(C) The medical data collection report shall be submitted to the domestic violence training and monitoring unit on a quarterly basis for quarters ending on September 30, December 31, March 31 and June 30. {DEL The unit shall tabulate and compile data from the medical data collection reports and report such compilation annually for the five (5) years following October 1, 1988 to the governor and the general assembly. DEL}

SECTION 8. Section 27-1-41 of the General Laws in Chapter 27-1 entitled "Domestic Insurance Companies" is hereby amended to read as follows:

{ADD 27-1-41. Domestic insurance company assessment. -- ADD} (a) Notwithstanding any other provisions of law each domestic insurance company shall be charged for the four (4) fiscal years set forth below an assessment to partially support the activities of the division of insurance in the department of business regulation.

{DEL (b) For the fiscal year 1990-1991 each domestic insurance company's assessment shall be determined in accordance with the following ratio: (1) by dividing the company's total direct premiums, including annuities, less polcyholder dividends, 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 27-19, 27-20, 27-20.1, 27-20.2, 27-20.3, 27-25, 27-41, and 42-62. (2) And then by multiplying the resulting ratio times $200,000.

(c) For the fiscal year 1991-1992 each domestic insurance company's assessment shall be determined in accordance with the following ratio: (1) by dividing the company's total direct premiums, including annuities, less policyholder dividends, 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 the title, and chapter 62 of title 42. (2) And then by multiplying the resulting ratio times three hundred sixty thousand dollars ($360,000).

(d) For the fiscal year 1992-1993 each domestic insurance company's assessment shall be determined in accordance with the following ratio: (1) by dividing the company's total direct premiums, including annuities, less policyholder dividends, 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) And then by multiplying the resulting ratio times two hundred forty thousand dollars ($240,000). DEL}

{DEL (e) DEL} {ADD (1) ADD} For the fiscal year 1993-1994 each domestic insurance company's assessment shall be determined in accordance with the following ratio: (1) by dividing the company's total direct premiums, including annuities, less policyholder dividends, 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) And then by multiplying the resulting ratio times one hundred twenty thousand dollars ($120,000).

{DEL (f) DEL} {ADD (b) ADD} The minimum assessment charged a domestic insurance company in any one (1) such fiscal year shall be one thousand dollars ($1,000).

{DEL (g) DEL} {ADD (c) ADD} To further support the activities of the insurance division of the department of business regulation, an amount equal to a specified percentage of the total premium taxes collected by the state shall be allocated to that division, as follows:

{DEL (i) for the fiscal year 1991-1992, 3.6% of such taxes collected during fiscal year 1990-1991,

(ii) for the fiscal year 1992-1993, 4% of such taxes collected during fiscal year 1991-1992, DEL}

{DEL (iii) DEL} {ADD (1) ADD} for the fiscal year 1993-1994, 4.5% of such taxes collected during fiscal year 1992-1993,

{DEL (iv) DEL} {ADD (2) ADD} for the fiscal year 1994-1995, 5% of such taxes collected during fiscal year 1993-1994,

{DEL (v) DEL} {ADD (3) ADD} for each fiscal year after fiscal year 1994-1995, 5% of such taxes for the fiscal year which immediately precedes it.

SECTION 9. Setions 27-3.1-1 and 27-3.1-6 of the General Laws in Chapter 27-3.1 entitled "Mandatory Prelicensing Education Requirements for Life and Health Insurance Agents, Subagents, Brokers and Solicitors" is hereby amended to read as follows:

{ADD 27-3.1-1. Issuance of license. -- ADD} For the protection of the people of this state, the insurance commissioner shall not issue any agent, sub-agent, broker, or solicitor license except in compliance with this chapter {ADD and chapter 2.3 ADD}

{ADD 27-3.1-6. Study aids. -- ADD} Each school shall, prior to the commencement of the life and health agents qualification classroom course, furnish each student with a copy of each of the following:

(1) The current edition of the life insurance, variable annuities, accident and health insurance, and relevant state law instruction book in compliance with section 27-3.1-3 {ADD and chapter 2.3 ADD} .

(2) Current insurance policies and related forms pertaining to the area of instruction, and

(3) The life and health agents qualification course outline in compliance with section 27-3.1-3 {ADD and chapter 2.3 ADD} .

SECTION 10. Section 27-4-17 of the general laws in chapter 27-4 entitled "Life Insurance Policies and Reserves" is hereby amended to read as follows:

{ADD 27-4-17. Annual valuation of policies and reserves. -- ADD} (a) The director of business regulation shall annually make valuations of all outstanding policies, additions thereto, 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, 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 these policies, for industrial policies, in lieu of the legal minimum standard hereinabove allowed.

(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 (1/4 of 1%):

For life insurance: I = .03 + W (R 1-.03) + W/2 (R 1-.09); where R 1 is the lesser of R and .09, R 2 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, if the calendar year statutory valuation interest rate for any life insurance policies issued in any calendar year determined without reference to subdivision (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 (1/2 of 1%), 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 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 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 are given in the following table:

WEIGHTING FACTORS FOR LIFE INSURANCE:

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.

(4) The reference interest rate referred to in subdivision (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.

(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; or

(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-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 therefor.

{DEL (f) After May 15, 1981 any company may file with the commissioner a written notice of its election to comply with the provision of the 1981 amendment of this section after a specified date before January 1, 1989, which shall be the operative date of the 1981 amendment of this section for the company. If a company makes no election, the operative date of the 1981 amendment of this section for that company shall be January 1, 1989. DEL}

SECTION 11. Section 27-7-2.4 of the General Laws in Chapter 27-7 entitled "Liability Insurance" is hereby amended to read as follows:

{ADD 27-7-2.4. Direct action against insurer upon filing for bankruptcy. -- ADD} Any person, having a claim because of damages of any kind caused by the tort of any other person, may file a complaint directly against the liability insurer of the alleged tort-feasor seeking compensation by way of a judgment for money damages whenever the alleged tort-feasor files for bankruptcy, involving a reorganization for the benefit of creditors or a wage earner plan, provided that the complaining party shall not recover an amount in excess of the insurance coverage available for the tort complained of. {DEL This section shall be given retroactive effect and shall apply to all claims in existence on May 16, 1983. DEL}

SECTION 12. Chapter 27-14 of the general laws entitled "Uniform Insurers Liquidation Act" is hereby repealed in its entirety:

{DEL 27-14-2. DEL} {DEL Definitions. -- DEL} {DEL For the purposes of this chapter:

(1) "Insurer" means any person, firm, corporation, association, or aggregation of persons doing an insurance business and subject to the insurance supervisory authority of, or to liquidation, rehabilitation, reorganization, or conservation by, the department of business regulation of this state, or the equivalent insurance supervisory official of another state.

(2) "Delinquency proceeding" means any proceeding commenced against an insurer for the purpose of liquidating, rehabilitating, reorganizing, or conserving that insurer.

(3) "State" means any state of the United States, and also the District of Columbia and Puerto Rico.

(4) "Foreign country" means territory not in any state.

(5) "Domiciliary state" means the state in which an insurer is incorporated or organized, or, in the case of an insurer incorporated or organized in a foreign country, the state in which that insurer, having become authorized to do business in that state, has, at the commencement of delinquency proceedings, the largest amount of its assets held in trust and assets held on deposit for the benefit of its policyholders or policyholders and creditors in the United States; and any foreign insurer is deemed to be domiciled in that state.

(6) "Ancillary state" means any state other than a domiciliary state.

(7) "Reciprocal state" means any state other than this state in which in substance and effect the provisions of this chapter are in force, including the provisions requiring that the director of business regulation is the receiver of a delinquent insurer.

(8) "General assets" means all property, real, personal, or otherwise, not specifically mortgaged, pledged, deposited, or otherwise encumbered for the security or benefit of specified persons or a limited class or classes of persons, and as to specifically encumbered property the term includes all property or its proceeds in excess of the amount necessary to discharge the sum or sums secured thereby. Assets held in trust and assets held on deposit for the security or benefit of all policyholders, or all policyholders and creditors in the United States, shall be deemed general assets; provided that general assets shall not mean unearned premiums due or owed the insurer by the policyholder, agent or broker at the time an insolvency or liquidation is declared by a court of competent jurisdiction, nor shall general assets mean unearned premiums held in trust or held on deposit by the agent, broker, or insurer.

(9) "Preferred claim" means any claim with respect to which the law of a state or of the United States accords priority of payment from the general assets of the insurer.

(10) "Special deposit claim" means any claim secured by a deposit made pursuant to statute for the security or benefit of a limited class or classes of persons, but not including any general assets.

(11) "Secured claim" means any claim secured by mortgage, trust, deed, pledge, deposit as security, escrow, or otherwise, but not including special deposit claims or claims against general assets. The term also includes claims which more than four (4) months prior to the commencement of delinquency proceedings in the state of the insurer's domicile have become liens upon specific assets by reason of judicial process.

(12) "Receiver" means receiver, liquidator, rehabilitator, or conservator as the context may require. DEL}

{DEL 27-14-3. DEL} {DEL Director as domiciliary receiver. -- DEL} {DEL Whenever under this title, including section 27-1-14, a receiver is to be appointed upon the commencement of delinquency proceedings for an insurer domiciled in this state, the superior court shall appoint the director of business regulation as the receiver. The court shall direct the receiver forthwith to take possession of the assets of the insurer and to administer them under the orders of the court. The receiver may subject to the discreation of the court continue to be the receiver for the duration of the receivership proceedings and shall have all the powers and duties conferred upon the receivers by law including the powers and duties set forth in chapter 27-1 and chapter 27-14 of the general laws. DEL}

{DEL 27-14-4. DEL} {DEL Title vested in domiciliary receiver -- Official bond. -- DEL} {DEL The domiciliary receiver and his or her successors shall be vested by operation of law with the title to all of the property, contracts, and rights of action, and all of the books and records, of the insurer wherever located, as of the date of entry of the order directing possession to be taken, and the receiver shall have the right to recover that property and reduce it to possession; except that ancillary receivers in reciprocal states shall have, as to assets located in their respective states, the rights and powers which are hereinafter prescribed for ancillary receivers appointed in this state as to assets located in this state. The filing or recording of the order directing possession to be taken, or a certified copy thereof, in the office where instruments affecting title to property are required to be filed or recorded shall impart the same notice as would be imparted by a deed, bill of sale, or other evidence of title duly filed or recorded. The domiciliary receiver shall be responsible on his or her official bond for the proper administration of all assets coming into his or her possession or control. The court may at any time require an additional bond from the receiver or his or her deputies if deemed desirable for the protection of the assets. DEL}

{DEL 27-14-5. DEL} {DEL Administration of assets by receiver -- Employment of deputies and personnel. -- DEL} {DEL Upon taking possession of the assets of a delinquent insurer the domiciliary receiver shall, subject to the direction of the court, immediately proceed to conduct the business of the insurer or to take such steps as are authorized by the laws of this state for the purpose of liquidating, rehabilitating, reorganizing, or conserving the affairs of the insurer. In connection with delinquency proceedings the receiver may appoint one or more special deputies to act for him or her, and may employ such counsel, clerks, and assistants as he or she deems necessary. The compensation of the special deputies, counsel, clerks, or assistants and all the expenses of taking possession of the delinquent insurer and of conducting the delinquency proceedings shall be fixed by the receiver, subject to the approval of the court, and shall be paid out of the funds or assets of the insurer. Within the limits of the duties imposed upon them special deputies shall possess all the powers given to, and, in the exercise of those powers, shall be subject to all of the duties imposed upon the receiver with respect to delinquency proceedings. DEL}

{DEL 27-14-6. DEL} {DEL Director as ancillary receiver. -- DEL} {DEL Whenever under the laws of this state an ancillary receiver is to be appointed in delinquency proceedings for an insurer not domiciled in this state, the superior court shall appoint the director of business regulation as the ancillary receiver. The ancillary receiver shall file a petition in the court requesting appointment:

(a) If that he or she finds that there are sufficient assets of the insurer located in this state to justify the appointment of an ancillary receiver; or

(b) If ten (10) or more persons resident in this state having claims against the insurer file a petition with the director of business regulation requesting the appointment of an ancillary receiver. DEL}

{DEL 27-14-7. DEL} {DEL Powers and duties of receivers of foreign companies. -- DEL} {DEL The domiciliary receiver of an insurer domiciled in a reciprocal state shall be vested by operation of law with the title to all of the property, contracts, and rights of action, and all of the books and records, of the insurer located in this state, and the receiver shall have the immediate right to recover all balances due from local agents and to obtain possession of any books and records of the insurer found in this state. The receiver shall also be entitled to recover the other assets of the insurer located in this state except that upon the appointment of an ancillary receiver in this state, the ancillary receiver shall during the ancillary receivership proceedings have the sole right to recover those other assets. The ancillary receiver shall, as soon as practicable, liquidate from their respective securities those special deposit claims and secured claims which are proved and allowed in the ancillary proceedings in this state, and shall pay the necessary expenses of the proceedings. All remaining assets the ancillary receiver shall promptly transfer to the domiciliary receiver. Subject to the foregoing provisions the ancillary receiver and his or her deputies shall have the same powers and be subject to the same duties, with respect to the administration of the insurer's assets, as a receiver of an insurer domiciled in this state. DEL}

{DEL 27-14-8. DEL} {DEL Filing by claimants in reciprocal states against insurers of this state. -- DEL} {DEL In a delinquency proceeding begun in this state against an insurer domiciled in this state, claimants residing in reciprocal states may file claims either with the ancillary receivers, if any, in their respective states, or with the domiciliary receiver. All of those claims must be filed on or before the last date fixed for the filing of claims in the domiciliary delinquency proceeding. DEL}

{DEL 27-14-9. DEL} {DEL Proof of controverted claims of nonresidents. -- DEL} {DEL Controverted claims belonging to claimants residing in reciprocal states may either (a) be proved in this state as provided by law, or (b), if ancillary proceedings have been commenced in those reciprocal states, be proved in those proceedings. In the event a claimant elects to prove his or her claim in ancillary proceedings, if notice of the claim and opportunity to appear and be heard is afforded the domiciliary receiver of this state as provided in section 27-14-11 with respect to ancillary proceedings in this state, the final allowance of that claim by the courts in the ancillary state shall be accepted in this state as conclusive as to its amount, and shall also be accepted as conclusive as to its priority, if any, against special deposits or other security located within the ancillary state. DEL}

{DEL 27-14-10. DEL} {DEL Filing by claimants in this state against foreign insurer. -- DEL} {DEL In a delinquency proceeding in a reciprocal state against an insurer domiciled in that state, claimants against that insurer who reside within this state may file claims either with the ancillary receiver, if any, appointed in this state, or with the domiciliary receiver. All of those claims must be filed on or before the last date fixed for the filing of claims in the domiciliary delinquency proceeding. DEL}

{DEL 27-14-11. DEL} {DEL Proof of controverted claims of residents. -- DEL} {DEL Controverted claims belonging to claimants residing in this state may either (a) be proved in the domiciliary state as provided by the law of that state, or (b), if ancillary proceedings have been commenced in this state, be proved in those proceedings. In the event that any claimant elects to prove his or her claim in this state, the claimant shall file his or her claim with the ancillary receiver in the manner provided by the law of this state for the proving of claims against insurers domiciled in this state, and the claimant shall give notice in writing to the receiver in the domiciliary state, either by registered or certified mail or by personal service at least forty (40) days prior to the date set for hearing. The notice shall contain a concise statement of the amount of the claim, the facts on which the claim is based, and the priorities asserted, if any. If the domiciliary receiver, within thirty (30) days after the giving of notice, shall give notice in writing to the ancillary receiver and to the claimant, either by registered or certified mail or by personal service, of his or her intention to contest the claim, the domicillary receiver shall be entitled to appear or to be represented in any proceeding in this state involving the adjudication of the claim. The final allowance of the claim by the courts of this state shall be accepted as conclusive as to its amount, and shall also be accepted as conclusive as to its priority, if any, against special deposits or other security located within this state. DEL}

{DEL 27-14-12. DEL} {DEL Preferred ancillary claims against domestic insurers. -- DEL} {DEL In a delinquency proceeding against an insurer domiciled in this state, claims owing to residents of ancillary states shall be preferred claims if like claims are preferred under the laws of this state. All claims whether owing to residents or nonresidents shall be given equal priority of payment from general assets regardless of where those assets are located. DEL}

{DEL 7-14-13. DEL} {DEL Preferred claims in this state against foreign insurers. -- DEL} {DEL In a delinquency proceeding against an insurer domiciled in a reciprocal state, claims owing to residents of this state shall be preferred if like claims are preferred by the laws of that state. DEL}

{DEL 27-14-14. DEL} {DEL Special deposit claims. -- DEL} {DEL The owners of special deposit claims against an insurer for which a receiver is appointed in this or any other state shall be given priority against their several special deposits in accordance with the provisions of the statutes governing the creation and maintenance of special deposits. If there is a deficiency in any special deposit so that the claims secured thereby are not fully discharged therefrom, the claimants may share in the general assets, but any sharing shall be deferred until general creditors, and also claimants against other special deposits who have received smaller percentages from their respective special deposits, have been paid percentages of their claims equal to the percentage paid from the special deposit. DEL}

{DEL 27-14-15. DEL} {DEL Secured claims. -- DEL} {DEL The owner of a secured claim against an insurer for which a receiver has been appointed in this or any other state may surrender his or her security and file his claim as a general creditor, or the claim may be discharged by resort to the security, in which case the deficiency, if any, shall be treated as a claim against the general assets of the insurer on the same basis as the claims of unsecured creditors. If the amount of the deficiency has been adjudicated in ancillary proceedings as provided in this chapter, or if it has been adjudicated by a court of competent jurisdiction in proceedings in which the domiciliary receiver has had notice and opportunity to be heard, that amount shall be conclusive; otherwise the amount shall be determined in the delinquency proceeding in the domiciliary state. DEL}

{DEL 27-14-16. DEL} {DEL Attachment, garnishment, and execution. -- DEL} {DEL During the pendency of delinquency proceedings in this or any reciprocal state no action or proceeding in the nature of an attachment, garnishment, or execution shall be commenced or maintained in the courts of this state against the delinquent insurer or its assets. Any lien obtained by any action or proceeding in the nature of an attachment, garnishment, or execution within four (4) months prior to the commencement of any delinquency proceeding or at any time thereafter shall be void as against any rights arising in the delinquency proceeding. DEL}

{DEL 27-14-17. DEL} {DEL Suit in this state by domiciliary receiver of foreign insurer. -- DEL} {DEL The domiciliary receiver of an insurer domiciled in a reciprocal state may sue in this state to recover any assets of that insurer to which the receiver may be entitled under the laws of this state. DEL}

{DEL 27-14-18. DEL} {DEL Severability. -- DEL} {DEL If any provision of this chapter or the application thereof to any person or circumstance is held invalid, that invalidity shall not affect other provisions or applications of the chapter which can be given effect without the invalid provision or application, and to this end the provisions of this chapter are declared to be severable. DEL}

{DEL 27-14-19. DEL} {DEL Uniformity of construction. -- DEL} {DEL This chapter shall be so interpreted and construed as to effectuate its general purpose to make uniform the law of those states that enact it. DEL}

{DEL 27-14-20. DEL} {DEL Right of receiver to deposits. -- DEL} {DEL The provisions of section 27-1-8 shall not apply in any case where the director of business regulation has been appointed and is acting as a receiver, pursuant to the provisions of this chapter. DEL}

{DEL 27-14-21. DEL} {DEL Immediate access to assets. -- DEL} {DEL (1) Within 120 days of a final determination of insolvency of a company by a court of competent jurisdiction of this state, the receiver shall make an application to the court for the approval of a proposal to disburse assets out of that company's marshalled assets, from time to time as those assets become available, to the Rhode Island insurers' insolvency fund and to any similar organization in another state. The Rhode Island insurers' insolvency fund and similar organizations in other states shall hereinafter be referred to collectively as the funds.

(2) The proposal shall at least include provision for:

(a) Reserving amounts for the payment of the expenses of administration and claims falling within the priorities established in section 27-14-22 (a), (b), and (c) of the general laws.

(b) The disbursement of the assets marshalled to date and subsequent disbursements of assets as they become available.

(c) The equitable allocation of disbursements to each of the funds entitled thereto; and

(d) The securing by the receiver from each of the funds entitled to disbursements pursuant to this section, of an agreement to return to the receiver such assets previously disbursed as may be required to pay claims of secured creditors and claims falling within the priorities established in section 27-14-22(a), (b), (c), and (d) of the general laws in accordance with those priorities. No bond shall be required of any fund.

(3) The receiver's proposal shall provide for disbursements to the funds in amounts at least equal to the payments made or to be made thereby for which the funds could assert claims against the receiver, and shall further provide that if the assets available for disbursement from time to time do not equal or exceed the amount of those payments made or to be made by the funds then disbursements shall be in the amount of available assets.

(4) Notice of the application shall be given to the funds in each of the states and to the commissioners of insurance of each of the states. Any notice shall be deemed to have been given when deposited in the United States certified mails, first class postage prepaid, at least 30 days prior to the submission of the application to the court. Action on the application may be taken by the court provided the above required notice has been given and provided further that the receiver's proposal complies with subsections (2)a and (2)d. DEL}

{DEL 27-14-22. DEL} {DEL Priority of distribution. -- DEL} {DEL The priorities of distribution in a liquidation proceeding shall be in the following order:

(a) The cost and expenses of administration, including the claims handling expenses of the Rhode Island insurers' insolvency fund and of any similar organization in any other state.

(b) Wages actually owing to employees for services rendered within three months prior to the date of the filing of the delinquency petition, not exceeding three hundred dollars ($300) to each employee.

(c) Federal, state, and local taxes.

(d) Claims by policyholders, beneficiaries, and insureds arising from and within the coverage of and not in excess of the applicable limits of insurance policies and insurance contracts issued by the company, and liability claims against the insured which claims are within the coverage of and not in excess of the applicable limits of insurance policies and insurance contracts issued by the company, and claims of the Rhode Island insurers' insolvency fund and any similar organization in another state.

(e) all other claims. DEL}

{DEL 27-14-23. DEL} {DEL Agent's responsibilities. -- DEL} {DEL In the event of the entry of a decree ordering liquidation of an insurer, the responsibility of the agent to render premiums to the receiver shall be as follows:

(a) Any agent upon receiving notice that a policy of insurance is being cancelled shall as of the date of policy termination immediately remit unearned premiums in the possession of the agent to the insured who paid them, or with the written approval of the insured, purchase new coverage for the insured with a different insurer. The agent shall not owe, or remit to the insurer or to the liquidator-receiver any premiums that are unearned as of the date of commencement of such proceedings. The insurance commissioner shall promulgate rules in accordance with the administrative procedures act, chapter 35 of title 42, establishing guidelines for use by agents to calculate unearned premium.

(b) An agent who places initial insurance coverage, or renewal coverage, with an insurer admitted to do business in this state or with any insurer conducting business in Rhode Island which is an admitted carrier on the date of the coverage placement shall be deemed to have fulfilled his or her duty to the insured regarding the financial condition of the insurer and a claim for monetary damages shall not be brought or maintained against the agent for breach of duty or for any other cause of action resulting from the financial condition of the insurer.

(c) An agent who places initial insurance coverage, or renewal coverage, with an insurer that is not admitted to do business in this state or with any insurer conducting business in Rhode Island which is a non-admitted carrier on the date of the coverage placement, or if the insurer is not rated in the most recent published issue of Best's Key Rating Guide, shall be deemed to have fulfilled his or her duty to the insured regarding the financial condition of the insurer and a claim for monetary damages shall not be brought or maintained against the agent for breach of duty or for any other cause of action resulting from the financial condition of the insurer but only if the insured voluntarily signs this statement:

(Name of insured of (street, city or town, state), being duly sworn, deposes and says that on (date), he (she) directed his (her) insurance agent or broker to obtain insurance against certain risks covering property as described on the reverse side; that his (her) insurance agent or broker informed him (her) that (only part of) (no part of) the required insurance could be obtained from companies admitted to transact business in the state of Rhode Island, to wit: ($ ); and that he (she) informed me that he (she) made a diligent effort to procure the full amount of insurance from admitted insurers, but was unable to do so.

The following companies or groups and officer(s) or agent(s) thereof are among those which have declined the offering or accepted a part thereof: DEL}

{ADD ADD}

{DEL I was further informed that the amount of insurance shown below could be obtained from certain insurers not admitted to transact business in the state of Rhode Island. I therefore directed DEL}

{ADD ADD}

{DEL a licensed Rhode Island agent (broker) to obtain this insurance from these non-admitted companies through the office of DEL} __________________________ {DEL a licensed surplus line broker. This insurance was only the excess over the amounts procurable from admitted insurers. DEL} {ADD ADD} {DEL personally appeared before me DEL} {ADD ADD} {DEL and made oath that the above affidavit signed by him (her) is true to the best of his knowledge and belief. DEL}

{DEL (Signature of Insured) DEL}

{DEL (Notary Public) DEL}

SECTION 13. Sections 27-16-1.1, 27-16-2.2, 27-16-2.3 and 27-16-2.4 in Chapter 27-16 entitled "Unauthorized Insurance Business" are hereby amended to read as follows:

{DEL 27-16-1.1. Purpose of sections 27-16-1.1 to 27-16-2.5 -- Suits by states. -- DEL} {ADD 27-16-1.1. Purpose of sections 27-16-1.1 to 27-16-2.6 -- Suits by states. -- ADD} The purpose of sections 27-16-1.1 to {DEL 27-16-2.5 DEL} {ADD 27-16-2.6 ADD} is to subject certain insurers to the jurisdiction of the insurance commissioner and the courts of this state in suits by or on behalf of the state. The legislature declares that it is concerned with the protection of residents of this state against acts by insurers not authorized to do an insurance business in this state, by the maintenance of fair and honest insurance markets, by protecting authorized insurers which are subject to regulation from unfair competition by unauthorized insurers, and by protecting against the evasion of the insurance regulatory laws of this state. In furtherance of such state interest, the legislature herein provides methods for substituted service of process upon insurers in any proceeding, suit, or action in any court and substituted service of any notice, order pleading or process upon insurers in any proceeding by the commissioner of insurance to enforce or effect full compliance with the insurance laws of this state. In so doing, the state exercises its powers to protect residents of this state and to define what constitutes transacting an insurance business in this state, and also exercises powers and privileges available to this state by virtue of Public Law 15, 79th congress of the United States, chapter 20, 1st sess., S. 340; 15 U.S.C. sections 1011 to 1015, as amended, which declares that the business of insurance and every person engaged therein shall be subject to the laws of the several states.

{ADD 27-16-2.2. Penalty. -- ADD} Any unauthorized insurer who transacts any unauthorized act of an insurance business as set forth in sections 27-16-1.1 to {DEL 27-16-2.5 DEL} {ADD 27-16-2.6 ADD} may be fined not more than ten thousand dollars ($10,000).

{ADD 27-16-2.3. Short title. -- ADD} Sections 27-16-1.1 to {DEL 27-16-2.4 DEL} {ADD 27-16-2.6 ADD} inclusive may be cited as the "Uniform Unauthorized Insurers Act".

{ADD 27-16-2.4. Severability. -- ADD} If any provisions of sections 27-16-1.1 to {DEL 27-16-2.5 DEL} {ADD 27-16-2.6 ADD} or the application thereof to any person or circumstances are held invalid, such invalidity shall not affect other provisions or applications of the act which can be given effect without the invalid provision and to this end the provisions are declared to be severable.

SECTION 14. Chapter 27-18.3 of the General Laws entitled "Low Cost Health Insurance for the Uninsured" is hereby repealed in its entirety.

(a) "Basic health plan" or "Plan" is a system of enrollment on a prepaid basis, for basic health care benefits delivered through managed health care systems.

(b) "Managed health care system" means any entity described as an insurer in section 42-62-4(c) which provides the basic health care services to enrollees pursuant to this chapter.

(c) "Enrollee" means an unemployed individual, a self-employed individual, a full or part-time employee of an eligible firm, or an individual's spouse or dependent child, who:

(1) Is a resident of Rhode Island;

(2) Is under the age of 65 and not otherwise eligible for medicare;

(3) Is not presently covered by any health insurance and has not been covered by any health insurance for the preceding three (3) month period, except for the following:

(i) Unemployed individuals who have been directly paying for their own health insurance for the preceding three (3) months;

(ii) Individuals who have been covered by government funded medical assistance programs administered by the state department of human services pursuant to title XIX of the federal social security act [42 U.S.C. sections 1396--1396p]; or

(iii) Individuals who have been paying for health insurance through a prior employer's health insurance program.

(4) Chooses to obtain basic health care coverage from a participating managed health care system; and

(5) Assumes responsibility for payment of periodic rates to the plan.

(d) "Eligible firm" means a firm which has twenty-five (25) or less employees and which has not provided, or made available to his/her employees in the twenty-four (24) months preceding a group health or medical insurance plan, health maintenance organization plan, captive health insurance company plan, extended medical benefits plan, self-insured plan or any other plan which insures or reimburses for diagnostic, therapeutic, preventive, medical, psychiatric or other health services to a defined population.

(e) "Basic health care benefits" means the schedule of health care services to be covered by the basic health plan and which shall be clearly delineated in the enrollee's application and the basic health plan in bold print. The basic health plan shall be exempt from all mandatory benefits which insurers are required to provide to their insureds under provisions of law other than this chapter but shall include, at a minimum:

(1) Inpatient hospital care up to twenty (20) days per year;

(2) Outpatient hospital care including but not limited to surgery and anesthesia, preadmission testing, radiation therapy and chemotherapy;

(3) Emergency care through emergency room care and emergency admissions to a hospital (excluding, however, care for conditions that are not life-threatening);

(4) Physician care and well baby exams, with up to six (6) visits in a child's first year, and childhood immunizations until age eight (8); however, benefits need not be provided for the cost of biologicals used for vaccinations;

(5) Physician office visits or community health center visits for primary or sick care, up to four (4) visits per year and laboratory fees, surgery and anesthesia, diagnostic x-rays, physician care in a hospital inpatient or outpatient setting;

(6) Maternity care including prenatal office visits, care in the hospital for mother and child and newborn nursery care;

(7) Newborn metabolic and sickle cell screening, mammography and pap tests;

(8) Psychiatric care and substance abuse care up to twenty (20) outpatient visits per year, inpatient psychiatric care and inpatient substance abuse care shall be included in the twenty (20) days provided by (1) above. The lifetime substance abuse benefit shall be a maximum of forty-five (45) inpatient days;

(9) Home nursing care in lieu of or to reduce hospital length of stay, up to twenty (20) visits per year.

(f) "Rate" means the amount, approved by the department of business regulation, which is set by each managed health care system to cover the cost of the plan.

(g) "Department" means the department of business regulation.

(h) The term "physician" shall include doctors of medicine, optometry and osteopathy.

(i) Basic health care benefits may include deductibles and co-payments. DEL}

{DEL 27-18.3-2. Offering of basic insurance option. -- DEL} {DEL Any entity described as an insurer in section 42-62-4 may offer basic health care benefits to enrollees as defined herein under section 27-18.3-1(e). DEL}

{DEL 27-18.3-3. Powers and duties of department. -- DEL} {DEL Pursuant to rules and regulations promulgated by the department, the department shall:

(1) Require eligible firms to certify to the department or carrier that they have not provided health insurance to their employees, and for employed enrollees to certify the department or carrier that they have not been provided with health insurance by their employer, in whole or in part, directly or indirectly, for the preceding twenty four (24) months; and that all services, standards and definitions as provided for in section 27-18.3-1 have been complied with;

(2) Establish procedures for acting on complaints from enrollees;

(3) Provide for an open enrollment period season at least annually when all enrollees may select from among participating managed health care systems that particular system from which they wish to receive services;

(4) Certify that a basic health plan offered by a managed health care system has met the standards as specified in section 27-18.3-1 to participate in programs funded under section 35-4-20;

(5) Monitor the provision of services to enrollees by participating managed health care systems to:

(i) assure enrollee access to good quality basic health care benefits;

(ii) require periodic reports on services provided to establish an adequate basis for any evaluations; and

(6) Monitor the access state residents have to adequate and necessary health care service, determine the extent of current needs and make appropriate reports and recommendations to the governor and the general assembly;

(7) Evaluate the effects the plan has upon private employer-based health care coverage; and

(8) Determine the rates to be charged by participating managed health care systems in return for the provision of basic health plan insurance to enrollees. DEL}

{DEL 27-18.3-4. Responsibilities of managed health care systems. -- DEL} {DEL Managed health care systems shall:

(1) Collect rates from the enrollees; however the eligible firms shall have the option of paying any portion of the rates for his or her employees.

(2) Maintain records on enrollees.

(3) Market the basic health plan with potential enrollees.

(4) Submit information to the department for program evaluation.

(5) Not use any techniques or devices, including but not limited to health screening, to deny coverage to any person eligible for coverage under this chapter.

(6) Not limit the number of individuals it insures pursuant to this chapter.

(7) Be permitted to use pre-existing condition clauses which are permissible under section 42-62-12. DEL}

{DEL 27-18.3-5. Start-up date and limitations. -- DEL} {DEL The initial period for the enrollment of individuals and the delivery of services shall begin on September 1, 1990. DEL}

{DEL 27-18.3-6. Responsibilities and liabilities. -- DEL} {DEL Health care providers shall advise a patient of any service, treatment or test that is medically necessary but not covered under the contract if an ordinarily careful practitioner in the same or similar community would do so under the same or similar circumstances. DEL}

{DEL 27-18.3-7. Catastrophic health insurance. -- DEL} {DEL Any managed health care system providing basic health care benefits under the basic health plan shall be deemed to be offering a qualified program within the meaning of sections 42-62-4 (q) and 42-62-10. DEL}

{DEL 27-18.3-8. Benefits and coverages. -- DEL} {DEL Any policy provided pursuant to this chapter shall be exempt from all mandatory benefits and coverages and the minimum level of benefits and coverages are those provided for in section 27-18.3-1(e). DEL}

{DEL 27-18.3-9. Cost containment. -- DEL} {DEL Managed health care systems offering a basic health plan may utilize cost containment mechanisms for all service to include but not be limited to the following:

(a) Primary care gatekeepers;

(b) Pre-admission certification;

(c) Mandatory second opinion prior to elective surgery;

(d) Pre-authorization for specified services;

(e) Concurrent utilization review and management;

(f) Discharge planning for hospital care; and

(g) Design and implementation of a structure of co-payments and/or deductibles. DEL}

{DEL 27-18.3-10. Oversight. -- DEL} {DEL A committee is hereby established to oversee the implementation and evaluation of this chapter. Said committee shall also make recommendations to the general assembly which detail options for the state subsidization of basic health plan benefits for low income Rhode Islanders. Such recommendations shall include options for revenue raising as well as program administration. Said committee shall consist of seven (7) members: The director of the department of health or designee, who shall convene the committee; the director of the department of human services or designee; the director of the department of business regulation or designee; the chairperson of the house committee on finance or designee; the chairperson of the senate committee on finance or designee; the chairperson of the house committee on health, education and welfare or designee; and the chairperson of the senate committee on health education and welfare or designee. The committee shall meet and organize at the call of the speaker of the house who shall appoint a member to serve as chairperson of the committee.

Said committee shall submit progress and evaluative reports to the governor and the general assembly every six (6) months beginning on January 1, 1991. DEL}

{DEL 27-18.3-11. Expiration. -- DEL} {DEL This chapter shall expire on July 1, 1993 and no policies issued pursuant to this chapter shall issue after July 1, 1993 unless re-enacted by the general assembly. DEL}

{DEL 27-18.3-12. Severability of provisions. -- DEL} {DEL If any provision of this chapter or any rule or regulation made thereunder, or the application thereof to any person or circumstances, is held invalid by a court of competent jurisdiction, the remainder of the chapter, rule, or regulation and the application of such provision to other persons or circumstances shall not be affected thereby. The invalidity of any section or sections of this chapter shall not affect the validity of the remainder of the chapter. DEL}

{DEL 27-18.3-13. Penalty for fraud. -- DEL} {DEL Any person, firm or corporation that violates any provision of this chapter by misrepresenting a material fact on an application pursuant to this chapter, shall upon conviction for each offense be fined not more than one thousand dollars ($1,000) or be imprisoned for not exceeding one (1) year, or both. DEL}

SECTION 15. Section 27-25-27 of the General Laws in Chapter 27-25 entitled "Rhode Island Fraternal Code" is hereby amended to read as follows:

{ADD 27-25-27. Annual license. -- ADD} (a) {DEL Societies which are now authorized to transact business in this state may continue such business until the first day of May next succeeding January 1, 1985. DEL} The authority of such societies and all societies hereafter licensed shall thereafter 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 ($100.00). The society shall further pay a license fee of one hundred dollars ($100.00) 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.

SECTION 16. Section 27-41-3 of the General Laws in Chapter 27-41 entitled "Health Maintenance Organizations" is hereby amended to read as follows:

{ADD 27-41-3. Establishment of health maintenance organizations. -- ADD} (1)(a) Notwithstanding chapter 5.1 of title 7, sections 27-2-22, 27-19-4, 27-20-4, 27-20.1-2, 27-20.2-2, or any other law of this state to the contrary, any public or private organization may apply to the director of business regulation for and obtain a license to establish and operate a health maintenance organization in compliance with this act. No public or private organization shall establish or operate a health maintenance organization in this state, without obtaining a license under this chapter. A foreign corporation may qualify under this chapter, subject to its registration to do business in this state as a foreign corporation under section 7-1.1-99.

(b) Notwithstanding anything to the contrary in section 7-6-4, a non-profit corporation may be organized for the purpose of a health maintenance organization and that corporation shall not be subject to limits in its assets except as provided herein.

{DEL (2) Every health maintenance organization as of May 17, 1983shall submit an application for a license under subsection (3) of this section within 30 days of May 17, 1983. Each applicant may continue to operate until the director acts upon the application. In the event that an application is denied under section 27-41-4, the applicant shall henceforth be treated as a health maintenance organization whose license has been revoked. DEL}

(3) Each application for a license shall be verified by an officer or authorized representative of the applicant, shall be in a form prescribed by the director in consultation with the director of health, and shall set forth or be accompanied by the following:

(a) A copy of the organizational documents of the applicant, such as the articles of incorporation;

(b) A copy of the by-laws, rules and regulations, or similar document, if any, regulating the conduct of the internal affairs of the applicant;

(c) A list of the names, addresses, and official positions of the persons who are to be responsible for the conduct of the affairs of the applicant, including all members of the board of directors, board of trustees, executive committee, or other governing board or committee, the principal officers of the corporation;

(d) A copy of any contract made or to be made between any providers or persons listed in subdivision (c) above and the applicant;

(e) A copy of the form of evidence of coverage to be issued to the enrollees;

(f) A copy of the form of the group contract, if any, which is to be issued to employers, unions, trustees, or other organizations;

(g) Financial statements showing the applicant's assets, liabilities, and sources of financial support. If the applicant's financial affairs are audited by independent certified public accountants, a copy of the applicant's most recent regular certified financial statement shall be deemed to satisfy this requirement unless the director directs that additional or more recent financial information is required for the proper administration of this act;

(h) A description of the proposed method of marketing the health maintenance organization, a financial plan which includes a projection of the initial operating results anticipated until the organization has had net income for at least one year, and a statement as to the sources of working capital as well as any other sources of funding;

(i) A power of attorney duly executed by the applicant, if not domiciled in this state, appointing the director and his or her successors in office, and duly authorized deputies, as the true and lawful attorney of the applicant in and for this state upon whom all lawful process in any legal action or proceeding against the health maintenance organization on a cause of action arising in this state may be served;

(j) A statement reasonably describing the geographic area or areas to be served;

(k) A description of the complaint procedures to be utilized as required under section 27-41-11;

(l) A description of the procedures and programs to be implemented to meet the quality of health care requirements in section 27-41-4(1)(b);

(m) A description of the mechanism by which enrollees will be afforded an opportunity to participate in matters of policy and operation under section 27-41-6(2);

(n) Such other information as the director in consultation with the director of health may require to make the determinations required in section 27-41-4.

(4) An applicant or a licensed health maintenance organization shall, unless otherwise provided for in this act, file a notice describing any material modification of the operation set out in the information required by subsection (3). The notice shall be filed with the director prior to the modification. If the director does not disapprove within 90 days of the filing, the modification shall be deemed approved.

(5) An applicant or a licensed health maintenance organization shall file all contracts of reinsurance. Any agreement between the organization and an insurer shall be subject to the laws of this state regarding reinsurance. All reinsurance agreements and any modifications thereto must be filed and approved. Reinsurance agreements 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.

SECTION 17. Section 30-30-1 of the General Laws in Chapter 30-30 entitled "Benefits for Dependents of Deceased Veterans and Prisoners of War or Persons Missing in Action in the Armed Forces in the Far East" is hereby amended to read as follows:

{ADD 30-30-1. Appropriations -- Purposes. -- ADD} The general assembly shall annually appropriate such sum as may be necessary out of any money in the treasury not otherwise appropriated, for the purpose of creating and maintaining a "Dependents' education fund" from which shall be paid in whole or in part the charges for the tuition and books of such of the sons, daughters, and surviving spouses of veterans who died as the result of hostile action or a service connected disability arising out of active service in the Armed Forces, or who died from any cause while such disability was in existence, or of those who are serving in the far east and had a legal residence in this state at the time they were commissioned, warranted, enlisted, or inducted into the military or naval service of the United States and were either missing in action or are prisoners of war, provided that the next of kin has not been advised by the armed forces that the serviceman has been released or is no longer classified as missing in action. The benefits shall be extended to dependents who are attending or may attend the university of Rhode Island, the Rhode Island college or any institution of higher education or technical/professional learning; the maximum aid granted shall not exceed the in-state tuition cost plus average cost of books of attending the university of Rhode Island in that year, such costs to be yearly certified by the Board of Governors of Higher Education to the administering agency; provided, any such child dependent shall enter the institution while between the ages of sixteen (16) and twenty-six (26); and provided, further, that the aid herein granted shall be available to that child for such period of time as shall equal the normal time for completing the courses regularly offered by the institution, but in no case more than four (4) years; and provided, further, that the provision of this chapter shall apply also to the children of those who are serving in the far east, but did not have legal residence in this state at the time such persons were commissioned, warranted, enlisted, or inducted into the military or naval service of the United States; provided that those children have resided in this state continuously for five (5) years and are otherwise eligible upon the presentation to the proper administering authority of sufficient evidence that the parent qualifies such child to receive the benefits under this section; and provided, further, that as to surviving spouses such benefits must be utilized within a period of ten (10) years from the date eligibility is found or from the date of death of the spouse from whom eligibility is derived. {DEL In the event a surviving spouse does not qualify as of June 27, 1986 because more than ten (10) years has elapsed since that spouse would otherwise have been eligible, that spouse shall nevertheless be allowed two (2) years from June 27, 1986 within which to make application for any benefits for which the spouse would have qualified had it not been for the expiration of the ten (10) years. DEL}

SECTION 18. Section 31-11-10 of the General Laws in Chapter 31-11 entitled "Suspension or Revocation of Licenses -- Violations" is hereby amended to read as follows:

{ADD 31-11-10. Reinstatement after revocation or suspension. -- ADD} Any person whose license or privilege to drive a motor vehicle on the public highways has been revoked or suspended shall not be entitled to have such license or privilege renewed or restored unless the revocation or suspension was for a cause which has been removed, except that after the expiration of the term of the revocation or suspension he or she may apply to be restored to his or her right to drive, but the registry shall not grant such application unless and until it is satisfied after investigation of the character, habits and driving ability of such person that it will be safe to license him or her to drive a motor vehicle on the public highways and it has received a reinstatement fee of twenty-five dollars ($25.00) and an assessment fee of twenty-five dollars ($25.00); except said reinstatement fee and assessment fee shall not be required by any person whose license was suspended under section 31-10-44 and who has later been declared competent to operate a motor vehicle.

Provided, however, that the registry shall not hold a review hearing for reinstatement of a license where said license was suspended under section 31-11-25 or for failure to pay a fine under section 31-41-4. The registry shall immediately reissue the suspended license upon proof of payment of such fine, and in said instance, no reinstatement fee or assessment fee shall be imposed.

{DEL In addition to the fees noted above, during the period July 1, 1991 through June 30, 1993, there shall also be assessed an additional penalty, to be described as a substance abuse prevention assessment, with regard to license suspension reinstatement based upon the following violations, with the assessment to be as stated for each violation:

(a) when said license was suspended under section 31-11-12 or for failure to pay a fine under section 31-41-4 -- $30.00;

(b) refusal to submit to a chemical test -- $50.00;

(c) operating under the influence of a narcotic drug or intoxicating liquor --first offense -- $50.00;

(d) operating under the influence of a narcotic drug or intoxicating liquor --second offense or greater -- $150.00;

(e) reckless driving or driving to endanger -- $150.00.

This substance abuse prevention assessment shall be forwarded to the division of substance abuse, department of mental health, retardation and hospitals, to be deposited in the restricted purpose receipt account created pursuant to section 16-21.2-5 for the purposes of said account as provided by law except that monies collected for offenses enumerated in subsection (e) above shall be deposited in the restricted purpose receipt account created pursuant to section 16-21.3-3 for the purpose of said account as provided by law. DEL}

SECTION 19. Section 31-36-7 of the General Laws in Chapter 31-36 entitled "Gasoline Tax" is hereby amended to read as follows:

{ADD 31-36-7. Monthly report of distributors -- Payment of tax. -- ADD} (a) Every distributor shall on or before the twenty-fifth day of each month, render a report to the tax administrator, upon forms to be obtained from said tax administrator, of the amount (number of gallons) of fuels purchased, sold, or used by him or her or it without this state and the wholesale selling price thereof and the amount of fuels sold by him or her or it without this state from fuels within this state during the preceding calendar month, and, if required by the tax administrator as to purchases, the name or names of the person or persons from whom purchased and the date and amount of each purchase, and as to sales, the name or names of the person or persons to whom sold and the amount of each sale, and shall pay at the same time to said tax administrator the balance of a tax, if any, on all such fuels sold or used by such distributor within this state, and said tax to be at the rate set forth in paragraph (b) below.

(b)(1) For the period June 1, 1981 through March 31, 1983 every distributor shall pay to the tax administrator a tax at the rate of ten percent (10%) of the average wholesale selling price excluding federal and state excise taxes of all taxable gallons of fuel sold or used by it within this state. The tax rate of ten percent (10%) of the average wholesale selling price shall be converted to cents per gallon rounded up to the nearest whole cent. In no event shall the tax imposed be less than ten cents (10›) per gallon.

(2) For the period April 1, 1983 and thereafter, every distributor shall pay to the tax administrator a tax at the rate of eleven percent (11%) of the average wholesale selling price excluding federal and state excise taxes of all taxable gallons of fuel sold or used by it within this state. The tax rate of eleven percent (11%) of the average wholesale selling price shall be converted to cents per gallon rounded up to the nearest whole cent. In no event shall the tax imposed be less than twenty-five cents ($.25) per gallon , twenty-four cents ($.24) of which shall be disbursed and distributed pursuant to the provisions of section 31-36-20, and one-cent ($.01) of which shall be paid into the general revenue fund for general revenue purposes.

(3) In determining the rate for the period June 1, 1981 through December 31, 1981, the tax administrator shall fix the rate based on the wholesale selling price of motor fuel sold during the first quarter of 1981 and from other relevant data. The rate for this period shall be fixed during the month of May, 1981. Every year, during the months of March, June, September and December, commencing with June 1982, the tax administrator shall fix a new tax for motor fuel. The tax administrator shall fix the tax rate during June of a particular year based on motor fuel sold during April of that same year. The tax administrator shall fix the tax rate during September based on motor fuel sold during July of that same year. The tax administrator shall fix the tax rate during December of a particular year based on motor fuel sold during October of that same year. The tax administrator shall fix the tax rate during March of a particular year based on motor fuel sold during January of that same year. The tax rate fixed by the tax administrator during June of a particular year is the tax rate for the three-month period that begins on July 1 of that same year. The tax rate fixed by the tax administrator during September of a particular year is the tax rate for the three-month period that begins on October 1 of that same year. The tax rate fixed by the tax administrator during December of a particular year is the tax rate for the three-month period that begins on January 1 of the immediately following year.

The tax rate fixed by the tax administrator during March of a particular year is the tax rate for the three-month period that begins on April 1 of that same year.

(c) The tax administrator shall fix the tax rate for motor fuel in the manner prescribed in the following steps:

STEP ONE: Enter the number of gallons of taxable gasoline sold during April, July, October or January as the case may be.

STEP TWO: Enter the remainder of (A) the total amount of money received from the wholesale selling price of the gasoline described in step one, minus (B) the portion of that total amount which represents federal and state excise taxes imposed thereon.

STEP THREE: Enter the quotient of (A) the remainder determined under step two, divided by (B) the number of gallons entered under step one.

STEP FOUR: (i) For the period referred to in subdivision (b) (1) above, enter the product of (A) the greater of (1) one dollar ($1.00) or (2) the quotient determined under step three, multiplied by (B) the applicable rate set forth in paragraph (b) above of this section.

(ii) For the period referred to in subdivision (b)(2) above, enter the product of (A) the greater of (1) two dollars and twenty-eight cents ($2.28) or (2) the quotient determined under step three, multiplied by (B) the applicable rate set forth in paragraph (b) above of this section.

The product entered under step four, with any fraction of a cent to be rounded to the next higher cent, is the tax rate per gallon of motor fuel for the appropriate three-month period specified in subsection (b).

Additionally, every distributor shall, at the time of payment of the foregoing tax, pay over to the tax administrator an excise tax in an amount equal to two percent (2%) of the wholesale price per gallon of such fuels. The wholesale price shall be that price as determined by the tax administrator consistent with the provisions of this chapter, and all the provisions of this chapter shall apply to this levy. In no event shall said excise tax imposed be less than three cents ($.03) per gallon.

(d) For purposes of this section the term "wholesale selling price" shall mean the delivered price exclusive of federal and state excise taxes and exclusive of any additional charges in excess of the regular wholesale selling price.

(e) It shall be unlawful, except in proceedings before a court of competent jurisdiction or to collect the taxes or enforce the penalties provided by this chapter of this title, for the tax administrator or any person having an administrative duty under said chapters to make known in any manner whatever the business affairs, operations, or information obtained by an investigation of records and equipment of any distributor or any other person visited or examined in the discharge of official duty, or the amount or source of income, profits, losses, expenditures, or any particular thereof, set forth or disclosed in any return, or to permit any return or copy thereof or any book containing any abstract or particulars thereof to be seen or examined by any person; provided, however, the tax administrator may authorize examination of his or her records and the returns filed with him or her by the tax authorities of another state or of the federal government, if a reciprocal arrangement exists.

Provided, further, that nothing herein shall be construed to prevent the disclosure or publication of statistical or other information wherein the identity of individual taxpayers is not made known.

(f)(1) Pursuant to rules and regulations prescribed by the tax administrator, the distributor shall pay within five (5) calendar days following the close of each taxable period, as hereinafter defined, the amount of tax due on fuels for such period. A taxable period shall mean the 1st through 22nd day of the first month of the calendar quarter, the 23rd day of the first month through the 22nd day of the second month of the calendar quarter and 23rd of the second month through the 22nd day of the third month of a calendar quarter.

The distributor shall file a tax return on or before the twentieth day of the month following the close of each calendar quarter. Taxes accruing from the 23rd through the last day of the third month of the quarter shall be paid with the return.

The difference between the actual amount of tax liability for the entire quarter and the sum of the amounts previously paid for that quarter shall be reconciled at the time of filing the return. If the amount of tax liability exceeds payments previously made for the quarter, the balance of the tax shall be paid over to the tax administrator with the filing of the quarterly return. If the amount of payment previously made exceeds the tax liability for the quarter, credit for the overpayment shall be applied to the next payment due.

{DEL Provided, however, for the period of March, April, May and June, 1982, a distributor shall file a tax return on or before the 20th day of July 1982. Taxes accruing from the 23rd of June through the 30th of June 1982, shall be paid with the July 20, 1982 tax return. DEL}

(2) A distributor will be considered to have complied with the requirements of subdivision (f) (1) with respect to the close of a calendar quarter if either the distributor's payments for the taxable periods during such calendar quarter total not less than ninety percent (90%) of the tax liability for the calendar quarter period or each taxable period payment is equal to one hundred percent (100%) of the tax liability for the comparable period of the next prior year. This latter alternative shall not apply to a distributor who had no tax liability for the comparable period of the next prior year.

(3) In case of failure by any person required to pay on the date prescribed therefor any amount of taxes with the tax administrator under this subsection, unless it is shown that such failure is due to reasonable cause and not due to willful neglect, there shall be imposed upon such person a penalty of five percent (5%) of the amount of the underpayment. For purposes of this paragraph the term "underpayment" means the excess of the amount of tax required to be paid over the amount, if any, thereof paid on or before the due date.

(4) Additions to tax. In case of failure:

(A) to file any return required by this section on the date prescribed therefor (determined with regard to any extension of time for filing), unless it is shown that such failure is due to reasonable cause and not due to willful neglect, there shall be added to the amount required to be shown as a payment or as tax on such return five percent (5%) of such amount if the failure is for not more than one (1) month, with an additional five percent (5%) for each additional month or fraction thereof during which such failure continues, not exceeding twenty-five percent (25%) in the aggregate;

(B) to pay the amount shown as payment or tax on any return specified in paragraph (A) on or before the date prescribed for payment of such tax (determined with regard to any extension of time for payment), unless it is shown that such failure is due to reasonable cause and not due to willful neglect, there shall be added to the amount shown as tax on such return five-tenths percent (0.5%) of such amount if the failure is for not more than one (1) month, with an additional five-tenths percent (0.5%) for each additional month or fraction thereof during which such failure continues, not exceeding twenty-five percent (25%) in the aggregate; or

(C) to pay any amount in respect of any tax required to be shown on a return specified in paragraph (A) which is not so shown (including an assessment made as a result of mathematical error) within ten (10) days of the date of the notice and demand therefor, unless it is shown that such failure is due to reasonable cause and not due to willful neglect, there shall be added to the amount of tax stated in such notice and demand five-tenths percent (0.5%) of such amount if the failure is for not more than one (1) month, with an additional five-tenths percent (0.5%) for each additional month or fraction during which such failure continues, not exceeding twenty-five percent (25%) in the aggregate.

(5) Limitations and special rule:

(A) with respect to any return, the amount of the addition under paragraph (A) of subsection (4) shall be reduced by the amount of the addition under paragraph (B) of subsection (4) for any month to which an addition to tax applies under paragraphs (A) and (B);

(B) with respect to any return, the maximum amount of the addition permitted under paragraph (A) of subsection (4) shall be reduced by the amount of the addition under paragraph (C) of subsection (4) which is attributable to the tax for which the notice and demand is made and which is not paid within ten (10) days of notice and demand;

(C) the additions set forth in this paragraph (5) shall be in lieu of the ten percent (10%) penalties prescribed in section 31-36-9(2) and (10). Interest prescribed in section 44-1-7 shall be applicable.

(6) Federal Requirements. In the event the Federal Government requires a certain portion of the gasoline tax to be dedicated for highway improvements, then the state controller is hereby directed to establish a restricted receipt account and deposit that portion of gasoline tax receipts which brings the state into federal compliance.

SECTION 20. Section 31-41-4 of the General Laws in Chapter 31-41 entitled "Administrative Payment of Certain Traffic Offenses" is hereby amended to read as follows:

{ADD 31-41-4. Violations to which applicable and schedule. -- ADD} The penalties for violations of the enumerated sections correspond to the fines described; provided, however second and subsequent moving offenses, punishments which may vary according to the severity of the offense or punishments which require the violator to perform a service, shall be heard and decided by the administrative adjudication court or municipal court. The following violations may be handled administratively through the method as prescribed in the chapter; provided however, this list is not exclusive and jurisdiction may be conferred on the administrative adjudication court with regard to other violations.

{DEL {DEL Local motor vehicle ordinance 31-41-1 DEL} {DEL 30.00 DEL} DEL}

Mail certified check or money order only, together with properly executed form provided to the appropriate address as set forth in the summons.

SECTION 21. This section and sections 4 through 20 shall take effect upon passage; and sections 1, 2 and 3 of this act shall take effect December 31, 1994.