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2012 -- H 7530 | |
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LC01336 | |
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STATE OF RHODE ISLAND | |
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IN GENERAL ASSEMBLY | |
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JANUARY SESSION, A.D. 2012 | |
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A N A C T | |
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RELATING TO INSURANCE - ACCIDENT AND SICKNESS INSURANCE POLICIES | |
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Introduced By: Representatives McLaughlin, San Bento, McNamara, Ferri, and Messier | |
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Date Introduced: February 15, 2012 | |
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Referred To: House Corporations | |
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It is enacted by the General Assembly as follows: | |
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SECTION 1. Section 27-18-54 of the General Laws in Chapter 27-18 entitled "Accident |
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and Sickness Insurance Policies" is hereby amended to read as follows: |
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27-18-54. Health insurance rates. – (a) No insurance company organized as a stock or |
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mutual corporation which merges or consolidates with, acquires ownership or control or |
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possession of twenty percent (20%) or greater of the operating assets of, or otherwise acquires |
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control of a non-profit hospital service corporation organized under chapter 19 of this title, a non- |
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profit medical service corporation organized under chapter 20 of this title or a health maintenance |
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organization organized under chapter 41 of this title may: (1) file with any state agency for review |
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or approval any proposed rate to be used by the company in the state, or (2) charge to any party in |
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the state any rate or premium, which takes into account or reflects in any manner the value of any |
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contribution, distribution or allocation the company expends or incurs in establishing or funding a |
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charitable foundation organized to maintain or account for the assets of a non-profit hospital |
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service corporation, non-profit medical service corporation or health maintenance organization. |
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For any rate that is to be charged to policy holders, regardless of whether the rate is subject to |
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approval by a state agency under this or another chapter, the company shall at least thirty (30) |
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days before implementing the rate submit under oath to the commissioner of insurance an |
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accounting that documents the cost structure on which the rate is based and demonstrates the |
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company's compliance with this section. |
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(b) Rate increases to policy holders shall not exceed two percent (2%) per year. |
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SECTION 2. This act shall take effect upon passage. |
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LC01336 | |
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EXPLANATION | |
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BY THE LEGISLATIVE COUNCIL | |
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OF | |
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A N A C T | |
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RELATING TO INSURANCE - ACCIDENT AND SICKNESS INSURANCE POLICIES | |
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This act would limit rate increases on health insurance policies to two percent (2%) per |
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year. |
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This act would take effect upon passage. |
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LC01336 | |
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