§ 42-62-15 - Facility reinsurance pool.
SECTION 42-62-15
§ 42-62-15 Facility reinsurance pool.– (a) To be eligible to offer plans meeting minimum standards, insurers which arefor profit entities or self insurers may enter an agreement to form a facilityreinsurance pool within which losses are shared among the insurers on an annualbasis in proportion to the number of persons insured pursuant to articles I andII of this chapter.
(b) The agreements shall not be effective until approved bythe director of the department of business regulation as being in the publicinterest and in conformance with regulations issued by the department ofbusiness regulation.
(c) If, after a sixty (60) day notice to all of thesefacility reinsurance pool insurers and after a public hearing, the director ofthe department of business regulation makes a finding that there is a lack offair competition among the insurers, or that the public interest is not beingserved by existing agreements, or by a lack of an agreement, the director mayrequire these insurers as a condition of doing business within the state toparticipate in the facility reinsurance pool established under regulationsissued pursuant to this chapter.