§ 27-66-7.1 - Certain financial incentives prohibited. - Rhode Island Statutes

SECTION 27-66-7.1

   § 27-66-7.1  Certain financial incentivesprohibited. – It being generally contrary to the public interest to lose local control of anonprofit health insurer providing the majority of private health insurancecoverage within the state, and such payments as are herein forbidden providinginducements to do so for personal gain, no officer, director or seniormanagement employee of a nonprofit hospital and/or medical service corporationor of any subsidiary of such corporation shall solicit, accept, receive ormaintain claim of right to any financial incentive, including any pecuniaryreward, based in whole or in part on the contingency of, or as a result of, thecompletion of a conversion. For purposes of this section, "pecuniary award"includes, but is not limited to, bonuses, cash payouts, deferred payments,stock options and enhanced retirement packages. Nothing in this section shallbe deemed to prohibit the employment of such an officer, director or employeeby a successor corporation or entity following the completion of a conversion,nor to prohibit reasonable severance payments where no conversion is involved.