§ 36-12-6 - Authority to purchase group life, accidental death, long term health care, and other insurance benefits.
SECTION 36-12-6
§ 36-12-6 Authority to purchase grouplife, accidental death, long term health care, and other insurance benefits.– (a) The director of administration, or any employee of the department ofadministration designated by the director as his or her agent, is herebyauthorized, empowered, and directed to contract with one or more insurancecompanies duly licensed by this state for the purchase of one or more contractsproviding for group life, accidental death, long term health care and otherinsurance benefits in conformity with the provisions of §§ 36-12-6– 36-12-14, to purchase contracts of insurance and to administer allprovisions of §§ 36-12-6 – 36-12-14. Before entering into anyinsurance contract under this chapter, the director shall invite proposals fromsuch qualified insurers as in his or her opinion would desire to accept anypart of the insurance coverage authorized by §§ 36-12-6 –36-12-14 including hospital care and surgical-medical services with thespecific condition that the benefits and services provided by the carrier(s)will be substantially equivalent to those set forth in any collectivebargaining agreements executed between the state of Rhode Island and authorizedrepresentatives of the unions representing state employees or the health carecoverage presently being provided.
(b) The state will work diligently with leadership oforganized labor in order to ensure competitiveness, cost effective health careservices for all employees of the state who may be eligible for those benefits.
(c) Any new plan must accept pre-existing conditions forthose individuals who will be covered by the new policy.
(d) The director may arrange with the company or companiesfrom which the policy or policies of insurance authorized herein are purchasedto reinsure portions of any contract or contracts of insurance with otherinsurance companies duly licensed in this state which elect to enter intocontracts of reinsurance and are legally competent to do so. The director mayannually redetermine the amount or amounts of coverage to be allocated toreinsuring companies in advance of any contract year after the first year.
(e) The director may designate one or more of those insurancecompanies as the administering company or companies.
(f) Each employee who is covered under any contract orcontracts shall receive a certificate setting forth the benefits to which theemployee and his or her dependents are entitled thereunder, to whom benefitsshall be payable, to whom claims should be submitted, and summarizing theprovisions of the contract principally affecting the employee and his or herdependents.
(g) The director may, on June 30, 1961, or at the end of anyfiscal year thereafter, discontinue any insurance contract or contracts he orshe has purchased from any corporation or corporations and replace it or themwith a contract or contracts in any other corporation or corporations meetingthe requirements of §§ 36-12-6 – 36-12-14.