§ 40.1-24.6-3. Authorization to self-insure.
(a) Operators of two (2) or more developmental disability agencies are hereby authorized
and empowered to:
(1) Create a separate corporation (the "corporation�) for the purpose of issuing healthcare
insurance to the corporation members' employees and their dependents, and their retirees
and their dependents; and
(2) To develop and administer a sufficiently capitalized, self-insured group-risk-management
program (product).
(b) The corporation may have as its purposes the reduction of the risk of its members;
distributing, sharing, and pooling risks; acquiring excess loss insurance; and processing
and defending claims against the members of the corporation. Any contributions made
to the corporation for the purpose of distributing, sharing, or pooling risks shall
be made on an actuarially sound basis, and the corporation shall have an audit performed
annually, copies of which shall be provided to the corporation membership.
(c) The corporation shall not be considered an insurance company, and shall not be subject
to the provisions of the laws or regulations of the state of Rhode Island regulating
insurance companies and multiple employer welfare arrangements, and therefore, shall
not be subject to regulation by the Rhode Island department of business regulation
or the Rhode Island office of the health insurance commissioner.
(d) The corporation created pursuant to the provisions of this chapter will be created
by filing articles of incorporation pursuant to chapter 6 of title 7 entitled "Rhode Island Nonprofit Corporation Act,� and the articles of incorporation
will be filed by an incorporating developmental disability agency (member). The articles
of incorporation creating the corporation pursuant to the provisions of this section
may contain provisions, not inconsistent with this section, that the incorporators
(members) determine to be desirable or useful in fulfilling the purposes set forth
in this section. The corporation created pursuant to the provisions of this section
will have all of the powers of a nonprofit corporation created under chapter 6 of title 7.
(e) Whenever the governing board of the corporation created pursuant to the provisions
of this chapter determines that the purposes for which the corporation was created
have been substantially fulfilled and all bonds, notes, or other obligations of the
corporation have been fully paid or adequate provision has been made for their payment,
the corporation may be dissolved in the manner provided for nonprofit corporations
pursuant to chapter 6 of title 7 and, upon the corporation's dissolution, title to all financial resources and assets
of the corporation shall vest in and become the property of the members of the corporation
in proportions that are provided for in the corporation's articles of incorporation.