TITLE 27
Insurance
CHAPTER 27-20.1
Nonprofit Dental Service Corporations
SECTION 27-20.1-2
§ 27-20.1-2 Organization.
(a) Five (5) or more dentists duly licensed to practice under the laws of this
state who are members of the Rhode Island State Dental Society and who first
obtain authorization to do so by the Rhode Island State Dental Society, as
evidenced by an affidavit of the president and secretary of the society, may
associate themselves by written articles of association for the incorporation
of a nonprofit dental service corporation. The laws of this state relative to
insurance companies or to the business of insurance, and acts in amendment of
or in addition to them, shall not apply to any nonprofit dental service
corporation unless expressly so provided in those laws.
(b) The directors of a nonprofit dental service corporation,
other than a corporation organized pursuant to chapter 19 of this title, shall
consist of a majority of members of the public not associated with the
profession of dentistry and a minority of dentists duly licensed to practice
under the laws of this state.
(c) Each nonprofit dental service corporation shall have, in
addition to all other powers granted under this chapter and the laws of the
state, the power directly or through corporations in which the nonprofit dental
service corporation invests or causes to be organized and established and
subscribes for all of the capital stock of, the power:
(1) To operate as a nonprofit hospital service corporation,
subject to all the requirements of chapter 19 of this title and all of
regulatory requirements ancillary to it; and specifically the provisions of
§ 27-19-6; provided, they shall not be subject to §§ 27-19-14
and 27-19-15;
(2) To operate as a nonprofit medical service corporation,
subject to all of the requirements of chapter 20 of this title and all of the
regulatory requirements ancillary to it; and specifically the provisions of
§ 27-20-6; and
(3) To provide administrative, data processing, consulting,
utilization review, systems review, and related services relating to the
administration of health care services and health care insurance programs.
(d) Any limitation on investments or holdings provided in
§ 27-20.1-7 and any other provisions of the general laws shall not apply
with respect to investments or holdings under this section; provided, that the
value of any investment shall not exceed twenty percent (20%) of the assets of
the dental service corporation, measured at the time the investment is
initially made or added to excluding appreciation or such greater percentage as
may be approved in writing by the director of the department of business
regulation and the attorney general.
(e) To the extent that the combined value of all investments
in subsidiary or other affiliated entities exceeds fifty percent (50%) of the
total reserves and unassigned funds of the dental service corporation, the
amount in excess of fifty percent (50%) shall be deemed a "non admitted asset".
(f) Each nonprofit dental service corporation shall be deemed
to be an insurer for the purposes of compliance with chapter 44-17.
History of Section.
(P.L. 1959, ch. 183, § 1; P.L. 1983, ch. 83, § 1; P.L. 1993, ch. 47,
§ 1; P.L. 1993, ch. 437, § 1; P.L. 2004, ch. 58, § 1; P.L. 2004,
ch. 88, § 1; P.L. 2008, ch. 100, art. 32, § 1.)
