§ 42-62-13 - Rates charged.
SECTION 42-62-13
§ 42-62-13 Rates charged. – (a) The rates proposed to be charged or a rating formula proposed to be used byany insurer or health maintenance organization under this section to employers,the state or any political subdivision of the state, or individuals, shall befiled by the insurer or health maintenance organization at the office of thedirector of business regulation. This section does not apply to any entitysubject to § 27-19-1 et seq., and/or § 27-20-1 et seq. The ratesproposed to be charged by those entities shall be governed by the provisions of§ 27-19-1 et seq., and/or § 27-20-1 et seq. Within sixty (60) daysafter receipt of the application, the director, or the director's designee, mayhold a hearing upon not less than ten (10) days' written notice prior to thehearings. The notice shall contain a description of the rates proposed to becharged, and a copy of the notice shall be sent to the applicant and to theconsumer protection unit of the department of attorney general. At any hearingheld under this section, the applicant shall be required to establish that therates proposed to be charged or the rating formula proposed to be used areconsistent with the proper conduct of its business and with the interest of thepublic. Any documents presented in support of a filing of proposed rates underthis section shall be made available for public examination at any time andplace that the director may deem reasonable. The director, or the director'sdesignee, upon that hearing may administer oaths, examine and cross-examinewitnesses, receive oral and documentary evidence, and shall have the power tosubpoena witnesses, compel their attendance and require the production of allbooks, papers, records, correspondence, or other documents which he or shedeems relevant. Any designee who shall conduct a hearing pursuant to thissection shall report his or her findings in writing to the director withineighty (80) days of the filing with a recommendation for approval, disapproval,or modification of the rates proposed to be charged by the applicant. Therecommended decision shall become part of the record. The director shall makeand issue a decision not later than ten (10) days following the issuance of therecommended decision or, if the director hears the application without theappointment of a designee, as soon as is reasonably possible following thecompletion of the hearing on the proposed rate change. The decision mayapprove, disapprove, or modify the rates proposed to be charged by theapplicant. Insurers requesting changes in rates shall underwrite the reasonableexpenses of the department of business regulation in connection with thehearing, including any costs related to advertisements, stenographic reporting,and expert witnesses fees. Notwithstanding any other provisions of law, thefiling of proposed rates or a rating formula and the holding and conduct of anyhearings in connection with these proposed rates or rating formula shall bepursuant to this section.
(b) Whenever the term "designee" is used in this section, itshall mean a person who is impartial, a member in good standing of the RhodeIsland bar and a person who is sufficiently acquainted with the rules ofevidence as used in the superior court of the state so as to enable that personto conduct a hearing as designee of the director. The reasonable per diem costof the designee as appointed by the director shall be paid by the insurersrequesting changes in the rates.