Chapter 121
2019 -- H 6184 SUBSTITUTE A AS AMENDED
Enacted 07/08/2019

A N   A C T
RELATING TO INSURANCE -- LIFE INSURANCE POLICIES AND RESERVES

Introduced By: Representatives Caldwell, Speakman, Mendez, Vella-Wilkinson, and
Date Introduced: June 05, 2019

It is enacted by the General Assembly as follows:
     SECTION 1. Chapter 27-4 of the General Laws entitled "Life Insurance Policies and
Reserves" is hereby amended by adding thereto the following section:
     27-4-1.1. Denial of applicant based on naloxone prescription.
     (a) No life insurance company organized or doing business within this state shall:
     (1) Deny the application of an individual seeking coverage for any life insurance policy
pursuant to this chapter solely on the basis that the applicant has a prescription to carry or possess
the drug naloxone;
     (2) Otherwise discriminate in the offering, issuance, cancellation, amount of coverage,
price, or any other condition of a life insurance policy based solely and without any additional
actuarial justification upon the fact that an individual has been issued a prescription for naloxone
or has purchased naloxone.
     (b) Any denial of insurance coverage in violation of the provisions of this section:
     (i) Shall be void;
     (ii) The insurer shall reopen the application and underwriting process for consideration of
coverage and the life insurance company shall be deemed to have provided coverage to the
eligible person retroactive to the date of the initial application.
     SECTION 2. Section 27-4.8-1 of the General Laws in Chapter 27-4.8 entitled "Group
Life Insurance" is hereby amended to read as follows:
     27-4.8-1. Group life insurance definitions.
     Except as provided in ยง 27-4.8-2, no policy of group life insurance shall be delivered in
this state unless it conforms to one of the following descriptions:
     (1) A policy issued to an employer, or to the trustees of a fund established by an
employer, which employer or trustees shall be deemed the policyholder, to insure employees of
the employer for the benefit of persons other than the employer, subject to the following
requirements:
     (i) The employees eligible for insurance under the policy shall be all of the employees of
the employer, or all of any class or classes thereof. The policy may provide that the term
"employees" shall include the employees of one or more subsidiary corporations, and the
employees, individual proprietors, and partners of one or more affiliated corporations,
proprietorships, or partnerships if the business of the employer and of the affiliated corporations,
proprietorships, or partnerships is under common control. The policy may provide that the term
"employees" shall include the individual proprietor or partners if the employer is an individual
proprietorship or partnership. The policy may provide that the term "employees" may include
retired employees, former employees, and directors of a corporate employer. A policy issued to
insure the employees of a public body may provide that the term "employees" shall include
elected or appointed officials.
     (ii) The premium for the policy shall be paid either from the employer's funds or from
funds contributed by the insured employees, or from both. Except as provided in paragraph (iii)
subsection (1)(iii), a policy on which no part of the premium is to be derived from funds
contributed by the insured employees shall insure all eligible employees, except those who reject
the coverage in writing.
     (iii) An insurer may exclude or limit the coverage on any person as to whom evidence of
individual insurability is not satisfactory to the insurer; provided, however, that any exclusion or
limitation shall not be based solely on the fact that the person has a prescription to carry or
possess the drug naloxone.
     (2) A policy issued to a creditor or its parent holding company or to a trustee or trustees
or agent designated by two (2) or more creditors, which creditor, holding company, affiliate,
trustee, trustees, or agent shall be deemed the policyholder, to insure debtors of the creditor or
creditors subject to the following requirements:
     (i) The debtors eligible for insurance under the policy shall be all of the debtors of the
creditor or creditors, or all of any class or classes thereof. The policy may provide that the term
"debtors" shall include:
     (A) Borrowers of money or purchasers or lessees of goods, services, or property for
which payment is arranged through a credit transaction;
     (B) The debtors of one or more subsidiary corporations; and
     (C) The debtors of one or more affiliated corporations, proprietorships, or partnerships if
the business of the policyholder and of the affiliated corporations, proprietorships, or partnerships
is under common control.
     (ii) The premium for the policy shall be paid either from the creditor's finds funds, or
from charges collected from the insured debtors, or from both. Except as provided in paragraph
(3) subsection (2)(iii), a policy on which no part of the premium is to be derived from the funds
contributed by insured debtors specifically for their insurance shall insure all eligible debtors.
     (iii) An insurer may exclude any debtors as to whom evidence of individual insurability is
not satisfactory to the insurer; provided, however, that any exclusion shall not be based solely on
the fact that the person has a prescription to carry or possess the drug naloxone.
     (iv) The amount of the insurance on the life of any debtor shall at no time exceed the
greater of the scheduled or actual amount of unpaid indebtedness to the creditor, except that
insurance written in connection with open-end credit having a credit limit exceeding ten-thousand
dollars ($10,000) may be in an amount not exceeding the credit limit.
     (v) The insurance may be payable to the creditor or any successor to the right, title, and
interest of the creditor. The payment shall reduce or extinguish the unpaid indebtedness of the
debtor to the extent of the payment and any excess of the insurance shall be payable to the estate
of the insured.
     (vi) Notwithstanding the provisions of the above subsections, insurance on agricultural
non-decreasing or level term plan. Insurance on educational credit transaction commitments may
be written up to the amount of the loan commitment less the amount of any repayments made on
the loan. Notwithstanding the provisions of the above subsections, insurance on agricultural
credit transaction commitments may be written up to the amount of the loan commitment
on a non-decreasing or level term plan. Insurance on educational credit transaction
commitments may be written up to the amount of the loan commitment less the amount of
any repayments made on the loan.
     
     (3) A policy issued to a labor union, or similar employee organization, which shall be
deemed to be the policyholder, to insure members of the union or organization for the benefit of
persons other than the union or organization or any of its officials, representatives, or agents,
subject to the following requirements:
     (i) The members eligible for insurance under the policy shall be all of the members of the
union or organization, or all of any class or classes thereof.
     (ii) The premium for the policy shall be paid either from funds of the union or
organization, or from funds contributed by the insured members specifically for their insurance,
or from both. Except as provided in paragraph (iii) subsection (3)(iii), a policy on which no part
of the premium is to be derived from funds contributed by the insured members specifically for
their insurance shall insure all eligible members, except those who reject the coverage in writing.
     (iii) An insurer may exclude or limit the coverage on any persons as to whom evidence of
individual insurability is not satisfactory to the insurer; provided, however, that any exclusion or
limitation shall not be based solely on the fact that the person has a prescription to carry or
possess the drug naloxone.
     (4) A policy issued to a trust or to the trustees of a fund established or adopted by two (2)
or more employers, or by one or more labor unions or similar employee organizations, or by one
or more employers and one or more labor unions or similar employee organizations, which trust
or trustees shall be deemed the policyholder, to insure employees of the employers or members of
the unions or organizations for the benefit of person other than the employers or the unions or
organizations, subject to the following requirements:
     (i) The persons eligible for insurance shall be all of the employees of the employers or all
of the members of the unions or organizations, or all of any class or classes thereof. The policy
may provide that the term "employees" shall include the employees of one or more subsidiary
corporations, and the employees, individual proprietors, and partners of one or more affiliated
corporations, proprietorships, or partnerships if the business of the employer and of the affiliated
corporations, proprietorships, or partnerships is under common control. The policy may provide
that the term "employees" shall include the individual proprietor or partners if the employer is an
individual proprietorship or partnership. The policy may provide that the term "employees" shall
include retired employees, former employees, and directors of a corporate employer. The policy
may provide that the term "employees" shall include the trustees or their employees, or both, if
their duties are principally connected with the trusteeship.
     (ii) The premium for the policy shall be paid from funds contributed by the employer or
employers of the insured persons, or by the union or unions or similar employee organizations, or
by both, or from funds contributed by the insured persons or from both the insured persons and
the employers or unions or similar employee organizations. Except as provided in paragraph (iii)
subsection (4)(iii), a policy on which no part of the premium is to be derived from funds
contributed by the insured persons specifically for their insurance shall insure all eligible persons,
except those who reject the coverage in writing.
     (iii) An insurer may exclude or limit the coverage on any person as to whom evidence of
individual insurability is not satisfactory to the insurer; provided, however, that any exclusion or
limitation shall not be based solely on the fact that the person has a prescription to carry or
possess the drug naloxone.
     (5) A policy issued to an association or to a trust or to the trustees of a fund established,
created, or maintained for the benefit of members of one or more associations. The association or
associations shall have at the outset a minimum of one hundred (100) persons; shall have been
organized and maintained in good faith for purposes other than that obtaining insurance; shall
have been in active existence for at least two (2) years; and shall have a constitution and by-laws
bylaws which provides that:
     (i) The association or associations hold regular meetings not less than annually to further
purposes of the members,;
     (ii) Except for credit unions, the association or associations, collect dues or solicit
contributions from members,; and
     (iii) The members have voting privileges and representation on the governing board and
committees. The policy shall be subject to the following requirements:
     (A) The policy may insure members of the association or associations, employees
thereof, or employees of members, or one or more of the preceding or all of any class or classes
thereof for the benefit of persons other than the employee's employer.
     (B) The premium for the policy shall be paid from funds contributed by the association or
associations, or by employer members, or by both, or from funds contributed by the covered
persons or from both the covered persons and the association, associations, or employer members.
     (C) Except as provided in paragraph (D) subsection (5)(iii)(D), a policy on which no part
of the premium is to be derived from funds contributed by the covered persons specifically for the
insurance shall insure all eligible persons, except those who reject the coverage in writing.
     (D) An insurer may exclude or limit the coverage on any person as to whom evidence of
individual insurability is not satisfactory to the insurer; provided, however, that any exclusion or
limitation shall not be based solely on the fact that the person has a prescription to carry or
possess the drug naloxone.
     (6) A policy issued to a credit union or to a trustee or trustees or agent designated by two
(2) or more credit unions, which credit union, trustee, trustees, or agent shall be deemed
policyholder, to insure members of the credit union or credit unions for the benefit of persons
other than the credit union or credit unions, trustee or trustees, or agent or any of their officials,
subject to the following requirements:
     (i) The members eligible for insurance shall be all of the members of the credit union or
credit unions, or all of any class or classes thereof.
     (ii) The premium for the policy shall be paid by the policyholder from the credit union's
funds and, except as provided in paragraph (iii) subsection (6)(iii), shall insure all eligible
members.
     (iii) An insurer may exclude or limit the coverage on any member as to whom evidence
of individual insurability is not satisfactory to the insurer; provided, however, that any exclusion
or limitation shall not be based solely on the fact that the person has a prescription to carry or
possess the drug naloxone.
     SECTION 3. This act shall take effect upon passage and shall apply to any application for
life insurance filed on or after the effective date of this act.
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LC002568/SUB A/2
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