It is enacted by the General Assembly as follows:

SECTION 1. Chapter 27-20.1 of the General Laws entitled "Nonprofit Dental Service Corporations" is hereby amended by adding thereto the following section:

{ADD 27-20.1-14. Reserves. -- ADD} {ADD Any corporation organized under title 27 shall maintain total reserves for dental services, separate and distinct from reserves for other health services, in a dollar amount sufficient to pay claims for dental services and operating expenses for not less than one (1) month. Such reserves shall be computed as of each March 31st, June 30th, September 30th and December 31st, and a report setting forth such computation shall be submitted to the director of the department of business regulation together with such corporation's Rhode Island quarterly or annual statement to the insurance commissioner of the state of Rhode Island. ADD}

SECTION 2. This act shall take effect on June 30, 1996.