§ 27-50-12. Standards to assure fair marketing.
(a) Each small employer carrier shall actively market and offer all health benefit plans
sold by the carrier to eligible small employers in the state.
(b)(1) Except as provided in subsection (b)(2) of this section, no small employer carrier
or producer shall, directly or indirectly, engage in the following activities:
(i) Encouraging or directing small employers to refrain from filing an application for
coverage with the small employer carrier because of any health status-related factor,
age, gender, industry, occupation, or geographic location of the small employer; or
(ii) Encouraging or directing small employers to seek coverage from another carrier because
of any health status-related factor, age, gender, industry, occupation, or geographic
location of the small employer.
(2) The provisions of subsection (b)(1) of this section do not apply with respect to information
provided by a small employer carrier or producer to a small employer regarding the
established geographic service area or a restricted network provision of a small employer
carrier.
(c)(1) Except as provided in subsection (c)(2) of this section, no small employer carrier
shall, directly or indirectly, enter into any contract, agreement, or arrangement
with a producer that provides for or results in the compensation paid to a producer
for the sale of a health benefit plan to be varied because of any initial or renewal,
industry, occupation, or geographic location of the small employer.
(2) Subsection (c)(1) of this section does not apply with respect to a compensation arrangement
that provides compensation to a producer on the basis of percentage of premium, provided
that the percentage shall not vary because of any health status-related factor, industry,
occupation, or geographic area of the small employer.
(d) A small employer carrier shall provide reasonable compensation, as provided under
the plan of operation of the program, to a producer, if any, for the sale of any health
benefit plan subject to §â€‚27-50-10.
(e) No small employer carrier may terminate, fail to renew, or limit its contract or agreement
of representation with a producer for any reason related to health status-related
factor, occupation, or geographic location of the small employers placed by the producer
with the small employer carrier.
(f) No small employer carrier or producer shall induce or encourage a small employer to
separate or exclude an employee or dependent from health coverage or benefits provided
in connection with the employee's employment.
(g) Denial by a small employer carrier of an application for coverage from a small employer
shall be in writing and shall state the reason or reasons for the denial.
(h) The director may establish regulations setting forth additional standards to provide
for the fair marketing and broad availability of health benefit plans to small employers
in this state.
(i)(1) A violation of this section by a small employer carrier or a producer is an unfair
trade practice under chapter 13 of title 6.
(2) If a small employer carrier enters into a contract, agreement, or other arrangement
with a third-party administrator to provide administrative, marketing, or other services
related to the offering of health benefit plans to small employers in this state,
the third-party administrator is subject to this section as if it were a small employer
carrier.