(a)  Any rehabilitation, liquidation, administrative supervision, or conservation of a nonprofit medical service corporation organized under this chapter shall be conducted under the supervision of the director of business regulation pursuant to chapters 14.1, 14.2, and 14.3 of this title. The director of business regulation may apply for an order from the superior court directing the director of business regulation to rehabilitate, liquidate, or conserve a nonprofit medical service corporation upon any one or more of the following grounds:

(1)  That the nonprofit medical service corporation is insolvent; for the purposes of this section, the term “insolvent” means the inability of the nonprofit medical service corporation to meet its debts and financial obligations as they become due;

(2)  That the nonprofit medical service corporation fails or refuses to comply with a lawful order of the director of business regulation reasonably designed to correct unsound business policies or practices which, if uncorrected, could reasonably lead to insolvency as defined in subdivision (1); or

(3)  That the nonprofit medical service corporation’s financial condition is such as to render its further transaction of business hazardous to the public or its subscribers or members.

Terms Used In Rhode Island General Laws 27-20-24

  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Nonprofit medical service corporation: means any corporation organized pursuant hereto for the purpose of establishing, maintaining, and operating a nonprofit medical service plan;

    (20)  "Nonprofit medical service plan" means a plan by which specified medical service is provided to subscribers to the plan by a nonprofit medical service corporation;

    (21)  "Office of the health insurance commissioner" means the agency established under §?42-14. See Rhode Island General Laws 27-20-1

  • provider: means a healthcare professional or a healthcare facility. See Rhode Island General Laws 27-20-1
  • Subscribers: means those persons or groups of persons who contract with a nonprofit medical service corporation for medical service pursuant to a nonprofit medical service plan; and

    (25)  "Therapist in marriage and family practice" means a person who has been licensed pursuant to §?5-63. See Rhode Island General Laws 27-20-1

(b)  A claim by a health care provider shall not be asserted against any subscriber or member of the nonprofit medical service corporation in the event of the rehabilitation, liquidation, conservation, or administrative supervision of the nonprofit medical service corporation.

History of Section.
P.L. 1993, ch. 180, § 17.