Rhode Island § 27-66-4 - The Health Insurance Conversions Act

§ 27-66-4. Definitions.

For purposes of this chapter:

(1) “Acquiree” means the person or persons that lose(s) any ownership or control in a health insurance corporation, health maintenance organization, nonprofit hospital service corporation, or nonprofit medical service corporation.

(2) “Acquiror” means the person or persons who or that gain(s) an ownership or control in a health insurance corporation, health maintenance organization, nonprofit hospital service corporation, or nonprofit medical service corporation.

(3) “Conversion” means any transfer by a person or persons of an ownership or membership interest or authority in a health insurance corporation, health maintenance organization, nonprofit hospital service corporation, or nonprofit medical service corporation or the assets of these corporations, whether by purchase, merger, consolidation, lease, gift, joint venture, sale, or other disposition that results in a change of ownership or control or possession of twenty percent (20%) or greater of the members or voting rights or interests of the health insurance corporation, health maintenance organization, nonprofit hospital service corporation, or nonprofit medical service corporation or of the assets of the health insurance corporation, health maintenance organization, nonprofit hospital service corporation, or nonprofit medical service corporation or pursuant to which, by virtue of the transfer, a person, together with all persons affiliated with that person, holds or owns, in the aggregate, twenty percent (20%) or greater of the membership or voting rights or interests of the health insurance corporations, health maintenance organization, nonprofit hospital service corporation, or nonprofit medical service corporation or of the assets of the health insurance organization, health maintenance organization, nonprofit hospital service corporation, or nonprofit medical service corporation or the removal, addition, or substitution of a partner that results in a new partner gaining or acquiring a controlling interest in the health insurance organization, health maintenance organization, nonprofit hospital service corporation, or nonprofit medical service corporation or any change in membership that results in a new person gaining or acquiring a controlling vote in the health insurance corporation, health maintenance organization, nonprofit hospital service corporation, or nonprofit medical service corporation.

(4) “Department” means the department of business regulation.

(5) “Director” means the director of the department of business regulation.

(6) “Existing health insurance corporation, health maintenance organization, nonprofit hospital service corporation, or nonprofit medical service corporation” means the health insurance corporation, health maintenance organization, nonprofit hospital service corporation, or nonprofit medical service corporation as it exists prior to the acquisition.

(7) “For-profit corporation” means a legal entity formed for the purpose of transacting business that has as any one of its purposes pecuniary profit.

(8) “Health insurance corporation” means any insurance company subject to chapter 1 of this title that offers health insurance in Rhode Island except that “health insurance corporation” shall not include companies whose health insurance policies only cover one or more of the following: disability income, long-term care, legal services, hospital confinement indemnity, specified disease indemnity, sickness or bodily injury by accident, or other limited health benefits.

(9) “Mutual insurance company” means a corporation in which shares are held exclusively by members to whom profits are distributed as dividends and members are both the insurer and the insured.

(10) “New health insurance corporation, health maintenance organization, nonprofit hospital service corporation, or nonprofit medical service corporation” means the health insurance corporation, health maintenance organization, nonprofit hospital service corporation, or nonprofit medical service corporation as it exists after the completion of a conversion.

(11) “Not-for-profit corporation” means a corporation subject to chapter 6 of title 7, including any corporation organized under special provisions of the general laws or under a private act that is declared to be a “charitable corporation.”

(12) “Person” means any individual, trust or estate, partnership, joint venture, corporation, whether for profit or not for profit (including associations, mutual insurance companies, joint stock companies, and insurance companies).

(13) “Subscriber” means those persons or groups of persons who or that shall contract with a health insurance corporation, health maintenance organization, nonprofit hospital service corporation, or nonprofit medical service corporation for health insurance.

(14) “Transacting parties” means any person or persons who or that seeks either to transfer or acquire ownership or a controlling interest or controlling authority in a health insurance corporation, health maintenance organization, nonprofit hospital service corporation, or nonprofit medical service corporation that would result in a change of ownership, control, or authority of twenty percent (20%) or greater.