§ 27-61-5 - Justification of adverse insurance decisions. - Rhode Island Statutes

SECTION 27-61-5

   § 27-61-5  Justification of adverseinsurance decisions. – An insurer of an individual or group policy that takes an underwriting actionthat adversely affects a subject of abuse on the basis of a medical conditionthat the insurer knows is abuse-related shall explain the reason for its actionto the applicant or insured in writing and shall be able to demonstrate thatits action:

   (1) Does not treat abuse status as a medical condition;

   (2) Is permissible by law and applies in the same manner andto the same extent to all applicants and the insured with a similar medicalcondition without regard to whether the condition or claims abuse-related; and

   (3) Is based on a determination, made in conformance withsound actuarial principles or related actual or reasonably anticipatedexperience, that there is a correlation between the medical condition and amaterial increase in insurance risk.