2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-20.7 - Third-Party Health Insurance Administrators › Section 27-20.7-2. - Definitions.

§ 27-20.7-2. Definitions.
As used in this chapter, the following terms have the following meanings:
(1)
“Administrator” means a person who directly or indirectly solicits or effects coverage of, underwrites, collects charges or premiums from, or adjusts or settles claims on residents of this state, or residents of another state from offices in this state, in connection with life or health insurance coverage or annuities, except any of the following:
(i)
An employer on behalf of its employees or the employees of one or more subsidiaries or affiliated corporations of the employer;
(ii)
A union on behalf of its members;
(iii)
An insurer that is authorized to transact insurance in this state with respect to a policy lawfully issued and delivered in and pursuant to the laws of this state or another state;
(iv)
A producer licensed to sell life or health insurance in this state, whose activities are limited exclusively to the sale of insurance;
(v)
A creditor on behalf of its debtors with respect to insurance covering a debt between the creditor and its debtors;
(vi)
A trust and its trustees, agents, and employees acting pursuant to the trust established in conformity with 29 U.S.C. § 186;
(vii)
A trust exempt from taxation under § 501(a) of the Internal Revenue Code, 26 U.S.C. § 501(a), its trustees and employees acting pursuant to the trust, or a custodian and the custodian’s agents or employees acting pursuant to a custodian account that meets the requirements of § 401(f) of the Internal Revenue Code, 26 U.S.C. § 401(f);
(viii)
A credit union or a financial institution that is subject to supervision or examination by federal or state banking authorities, or a mortgage lender, to the extent they collect and remit premiums to licensed insurance producers or authorized insurers in connection with loan payments;
(ix)
A credit card issuing company that advances for and collects premiums or charges from its credit card holders who have authorized collection if the company does not adjust or settle claims;
(x)
A person who adjusts or settles claims in the normal course of that person’s practice or employment as an attorney at law and who does not collect charges or premiums in connection with life or health insurance coverage or annuities;
(xi)
An adjuster licensed by this state whose activities are limited to adjustment of claims;
(xii)
A person who acts solely as an administrator of one or more bona fide employee benefit plans established by an employer or an employee organization, or both, for which the insurance laws of this state are preempted pursuant to the Employee Retirement Income Security Act of 1974 (ERISA), 29 U.S.C. § 1001 et seq. That person shall comply with the requirements of § 27-20.7-12(g); or
(xiii)
A person licensed as a managing general agent in this state, whose activities are limited exclusively to the scope of activities conveyed under that license.
(2)
“Affiliate” or “affiliated” means an entity or person who directly or indirectly through one or more intermediaries controls or is controlled by, or is under common control with, a specified entity or person.
(3)
“Commissioner” means the commissioner of insurance.
(4)
“Control” has the same meaning as that term is defined in 27-35-1.
(5)
“Insurance” or “insurance coverage” means any coverage offered or provided by an insurer.
(6)
“Insurer” includes all persons, firms, or corporations offering and/or insuring health services on a prepaid basis, including, but not limited to, policies of accident and sickness insurance as defined by chapter 18 of this title, nonprofit hospital or medical service plans as defined by chapters 19 and 20 of this title, or any other entity whose primary function is to provide diagnostic, therapeutic, or preventive services to a defined population on the basis of a periodic premium. It includes all persons, firms, or corporations providing health benefits coverage for employees on a self-insurance basis without the intervention of other entities. Insurer does not include a bona fide employee benefit plan established by an employer or an employee organization, or both, for which the insurance laws of this state are preempted pursuant to the Employee Retirement Income Security Act of 1974, 29 U.S.C. § 1001 et seq.
(7)
“Underwrites” or “underwriting” means, but is not limited to, the acceptance of employer or individual applications for coverage of individuals in accordance with the written rules of the insurer; the overall planning and coordinating of an insurance program; and the ability to procure bonds and excess insurance.
History of Section.
P.L. 2001, ch. 83, § 1; P.L. 2001, ch. 242, § 1.