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Rhode Island Discount Medical Plan Organizations Must Be Bonded

by Surety Admin 12. September 2010 15:07
Rhode Island HB 7606/SB 2632 requires discount medical plan organizations to register and obtain a minimum $50,000 surety bond. The new law authorizes the Health Insurance Commissioner to use the bond at his or her discretion to protect the financial interest of the organization’s members, including refunds to consumers if the organization’s registration was revoked. An insurance company licensed to do business in the State must issue the bond. Cash or securities also are accepted in lieu of the bond. As introduced, the bill would have required a $100,000 bond, but it was reduced when the bill was revised in a substitution. The new law became effective upon enactment. ENACTED: 06/25/2010
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