§ 27-66-4 - Definitions. - Rhode Island Statutes

SECTION 27-66-4

   § 27-66-4  Definitions. – For purposes of this chapter:

   (1) "Acquiree" means the person or persons which lose(s) anyownership or control in a health insurance corporation, health maintenanceorganization, non-profit hospital service corporations and non-profit medicalservice corporations;

   (2) "Acquiror" means the person or persons which gain(s) anownership or control in a health insurance corporation, health maintenanceorganization, non-profit hospital service corporation and non-profit medicalservice corporation;

   (3) "Conversion" means any transfer by a person or persons ofan ownership or membership interest or authority in a health insurancecorporation, health maintenance organization, non-profit hospital servicecorporation or non-profit medical service corporation or the assets of thesecorporations, whether by purchase, merger, consolidation, lease, gift, jointventure, sale, or other disposition which results in a change of ownership orcontrol or possession of twenty percent (20%) or greater of the members orvoting rights or interests of the health insurance corporation, healthmaintenance organization, non-profit hospital service corporation or non-profitmedical service corporation or of the assets of the health insurancecorporation, health maintenance organization, non-profit hospital servicecorporation or non-profit medical service corporation or pursuant to which, byvirtue of the transfer, a person, together with all persons affiliated withthat person, holds or owns, in the aggregate, twenty percent (20%) or greaterof the membership or voting rights or interests of the health insurancecorporations, health maintenance organization, non-profit hospital servicecorporation or non-profit medical service corporation or of the assets of thehealth insurance organization, health maintenance organization, non-profithospital service corporation or non-profit medical service corporation or theremoval, addition or substitution of a partner which results in a new partnergaining or acquiring a controlling interest in the health insuranceorganization, health maintenance organization, non-profit hospital servicecorporation or non-profit medical service corporation or any change inmembership which results in a new person gaining or acquiring a controllingvote in the health insurance corporation, health maintenance organizationnon-profit hospital service corporation, or non-profit medical servicecorporation;

   (4) "Department" means the department of business regulation;

   (5) "Director" means the director of the department ofbusiness regulation;

   (6) "Existing health insurance corporation, healthmaintenance organization, non-profit hospital service corporation or non-profitmedical service corporation" means the health insurance corporation, healthmaintenance organization, non-profit hospital service corporation or non-profitmedical service corporation as it exists prior to the acquisition;

   (7) "For profit corporation" means a legal entity formed forthe purpose of transacting business which has as any one of its purposespecuniary profit;

   (8) "Health insurance corporation" means any insurancecompany subject to chapter 1 of this title of the general laws that offershealth insurance in Rhode Island except that "health insurance corporation"shall not include companies whose health insurance policies only cover one ormore of the following: disability income, long term care, legal services,hospital confinement indemnity, specified disease indemnity, sickness or bodilyinjury by accident or other limited health benefits.

   (9) "Mutual insurance company" means a corporation in whichshares are held exclusively by members to whom profits are distributed asdividends and members are both the insurer and the insured.

   (10) "New health insurance corporations, health maintenanceorganization, non-profit hospital service corporation or non-profit medicalservice corporation" means the health insurance corporations, healthmaintenance organization, non-profit hospital service corporation or non-profitmedical service corporation as it exists after the completion of a conversion;

   (11) "Not-for-profit corporation" means a corporation subjectto chapter 6 of title 7, including any corporation organized under specialprovisions of the general laws or under a private act which 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 andinsurance companies);

   (13) "Subscriber" means those persons or groups of personswho shall contract with a health insurance corporation, health maintenanceorganization, nonprofit hospital service corporation or nonprofit medicalservice corporation for health insurance.

   (14) "Transacting parties" means any person or persons whoseeks either to transfer or acquire ownership or a controlling interest orcontrolling authority in a health insurance corporation, health maintenanceorganization, non-profit hospital service corporation or non-profit medicalservice corporation which would result in a change of ownership, control orauthority of twenty percent (20%) or greater.