(a)  A discount medical plan organization may market directly or contract with other marketers for the distribution of its product.

Terms Used In Rhode Island General Laws 27-74-10

  • Commissioner: means the health insurance commissioner. See Rhode Island General Laws 27-74-3
  • Contract: A legal written agreement that becomes binding when signed.
  • Discount medical plan: means a business arrangement or contract in which a person, in exchange for fees, dues, charges or other consideration, offers access for its members to providers of medical or ancillary services and the right to receive discounts on medical or ancillary services provided under the discount medical plan from those providers. See Rhode Island General Laws 27-74-3
  • Discount medical plan organization: means an entity that, in exchange for fees, dues, charges or other consideration, provides access for discount medical plan members to providers of medical or ancillary services and the right to receive medical or ancillary services from those providers at a discount. See Rhode Island General Laws 27-74-3
  • in writing: include printing, engraving, lithographing, and photo-lithographing, and all other representations of words in letters of the usual form. See Rhode Island General Laws 43-3-16
  • Marketer: means a person or entity that markets, promotes, sells or distributes a discount medical plan, including a private label entity that places its name on and markets or distributes a discount medical plan pursuant to a marketing agreement with a discount medical plan organization. See Rhode Island General Laws 27-74-3

(b)  The discount medical plan organization shall have an executed written agreement with a marketer prior to the marketer’s marketing, promoting, selling or distributing the discount medical plan. The agreement between the discount medical plan organization and the marketer shall prohibit the marketer from using advertising, marketing materials, brochures and discount medical plan cards without the discount medical plan organization’s approval in writing.

(c)  The discount medical plan organization shall be bound by and responsible for the activities of a marketer that are within the scope of the marketer’s agency relationship with the organization.

(d)  A discount medical plan organization shall approve in writing all advertisements, marketing materials, brochures and discount cards used by marketers to market, promote, sell or distribute the discount medical plan prior to their use.

(e)  Upon request, a discount medical plan organization shall submit to the commissioner all advertising, marketing materials and brochures regarding a discount medical plan.

History of Section.
P.L. 2010, ch. 156, § 1; P.L. 2010, ch. 158, § 1.