§ 27-20.1-2 - Organization.
SECTION 27-20.1-2
§ 27-20.1-2 Organization. – (a) Five (5) or more dentists duly licensed to practice under the laws of thisstate who are members of the Rhode Island State Dental Society and who firstobtain authorization to do so by the Rhode Island State Dental Society, asevidenced by an affidavit of the president and secretary of the society, mayassociate themselves by written articles of association for the incorporationof a nonprofit dental service corporation. The laws of this state relative toinsurance companies or to the business of insurance, and acts in amendment ofor in addition to them, shall not apply to any nonprofit dental servicecorporation 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, shallconsist of a majority of members of the public not associated with theprofession of dentistry and a minority of dentists duly licensed to practiceunder the laws of this state.
(c) Each nonprofit dental service corporation shall have, inaddition to all other powers granted under this chapter and the laws of thestate, the power directly or through corporations in which the nonprofit dentalservice corporation invests or causes to be organized and established andsubscribes 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 ofregulatory requirements ancillary to it; and specifically the provisions of§ 27-19-6; provided, they shall not be subject to §§ 27-19-14and 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 theregulatory 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 theadministration 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 applywith respect to investments or holdings under this section; provided, that thevalue of any investment shall not exceed twenty percent (20%) of the assets ofthe dental service corporation, measured at the time the investment isinitially made or added to excluding appreciation or such greater percentage asmay be approved in writing by the director of the department of businessregulation and the attorney general.
(e) To the extent that the combined value of all investmentsin subsidiary or other affiliated entities exceeds fifty percent (50%) of thetotal reserves and unassigned funds of the dental service corporation, theamount in excess of fifty percent (50%) shall be deemed a "non admitted asset".
(f) Each nonprofit dental service corporation shall be deemedto be an insurer for the purposes of compliance with chapter 44-17.