2012 -- H 7694

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LC01019

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

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A N A C T

RELATING TO INSURANCE

     Introduced By: Representative Donald J. Lally

     Date Introduced: February 16, 2012

     Referred To: House Corporations

It is enacted by the General Assembly as follows:

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     SECTION 1. Section 27-19-10 of the General Laws in Chapter 27-19 entitled "Nonprofit

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Hospital Service Corporations" is hereby repealed.

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     27-19-10. Commission plans for solicitors or insurance producers. -- No person shall

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be engaged to solicit subscribers to any nonprofit hospital service plan upon a commission basis

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or upon any other basis by which the payment of the compensation or expenses of that person

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shall be conditioned upon the enrollment of subscribers, unless the method of solicitation and rate

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of compensation shall have had the prior written approval of the insurance commissioner.

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     SECTION 2. Section 27-20-10 of the General Laws in Chapter 27-20 entitled "Nonprofit

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Medical Service Corporations" is hereby repealed.

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     27-20-10. Commission plans for solicitors or insurance producers. -- No person shall

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be engaged to solicit subscribers to any nonprofit medical service plan upon a commission basis

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or upon any other basis by which the payment of the compensation or expenses of the person

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shall be conditioned upon the enrollment of subscribers, unless the method of solicitation and rate

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of compensation shall have had the prior written approval of the director of business regulation.

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     SECTION 3. Section 27-20.1-6 of the General Laws in Chapter 27-20.1 entitled

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"Nonprofit Dental Service Corporations" is hereby repealed.

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     27-20.1-6. Commission plans for solicitors or insurance producers. -- No person shall

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be engaged to solicit subscribers to any nonprofit dental service plan upon a commission basis or

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upon any other basis by which the payment of the compensation or expenses of that person shall

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be conditioned upon the enrollment of subscribers, unless the method of solicitation and rate of

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compensation shall have had the prior written approval of the director of business regulation.

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     SECTION 4. This act shall take effect upon passage.

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LC01019

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO INSURANCE

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     This act would repeal the requirement that nonprofit hospital, medical and dental service

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corporations obtain prior written approval for plans to compensate for soliciting subscribers.

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     This act would take effect upon passage.

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LC01019

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