§ 27-41-21 - Penalties and enforcement. - Rhode Island Statutes

SECTION 27-41-21

   § 27-41-21  Penalties and enforcement.– (a) The director of business regulation may, in lieu of the suspension orrevocation of a license under § 27-41-17, levy an administrative penaltyin an amount not less than five hundred dollars ($500) nor more than fiftythousand dollars ($50,000), if reasonable notice in writing is given of theintent to levy the penalty and the health maintenance organization has areasonable time in which to remedy the defect in its operations which gave riseto the penalty citation. The director of business regulation may augment thispenalty by an amount equal to the sum that the director calculates to be thedamages suffered by enrollees or other members of the public.

   (b) Any person who violates this chapter shall be guilty of amisdemeanor and may be punished by a fine not to exceed five hundred dollars($500) or by imprisonment for a period not exceeding one year, or both.

   (c) If the director of business regulation or the director ofhealth shall for any reason have cause to believe that any violation of thischapter has occurred or is threatened, the director of business regulation orthe director of health may give notice to the health maintenance organizationand to their representatives, or other persons who appear to be involved in thesuspected violation, to arrange a conference with the alleged violators ortheir authorized representatives for the purpose of attempting to ascertain thefacts relating to the suspected violation, and, in the event it appears thatany violation has occurred or is threatened, to arrive at an adequate andeffective means of correcting or preventing the violation;

   (2) Proceedings under this subsection shall be governed bychapter 35 of title 42.

   (d) The director of business regulation may issue an orderdirecting a health maintenance organization or a representative of a healthmaintenance organization to cease and desist from engaging in any act orpractice in violation of the provisions of this chapter;

   (2) Within thirty (30) days after service of the order tocease and desist, the respondent may request a hearing on the question ofwhether acts or practices in violation of this chapter have occurred. Thosehearings shall be conducted pursuant to §§ 42-35-9 – 42-35-13,and judicial review shall be available as provided by §§ 42-35-15 and42-35-16.

   (e) In the case of any violation of the provisions of thischapter, if the director of business regulation elects not to issue a cease anddesist order, or in the event of noncompliance with a cease and desist orderissued pursuant to subsection (d) of this section, the director of businessregulation may institute a proceeding to obtain injunctive relief, or seekingother appropriate relief, in the superior court for the county of Providence.

   (f) Notwithstanding any other provisions of this act, if ahealth maintenance organization fails to comply with the net worth, risk basedcapital or any other requirement of this title related to the solvency of thehealth maintenance organization, the director is authorized to take appropriateaction to assure that the continued operation of the health maintenanceorganization will not be hazardous to its enrollees or the public.