§ 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 health-care 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 their 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.

History of Section. (P.L. 2017, ch. 405, § 1; P.L. 2017, ch. 421, § 1.)