§ 36-12-6. Authority to purchase group life, accidental death, long term health care, and other insurance benefits. (a) The director of administration, or any employee of the department of administration designated by the director as his or her agent, is hereby authorized, empowered, and directed to contract with one or more insurance companies duly licensed by this state for the purchase of one or more contracts providing for group life, accidental death, long term health care and other insurance benefits in conformity with the provisions of §§ 36-12-6 - 36-12-14, to purchase contracts of insurance and to administer all provisions of §§ 36-12-6 - 36-12-14. Before entering into any insurance contract under this chapter, the director shall invite proposals from such qualified insurers as in his or her opinion would desire to accept any part of the insurance coverage authorized by §§ 36-12-6 - 36-12-14 including hospital care and surgical-medical services with the specific condition that the benefits and services provided by the carrier(s) will be substantially equivalent to those set forth in any collective bargaining agreements executed between the state of Rhode Island and authorized representatives of the unions representing state employees or the health care coverage presently being provided.

(b) The state will work diligently with leadership of organized labor in order to ensure competitiveness, cost effective health care services for all employees of the state who may be eligible for those benefits.

(c) Any new plan must accept pre-existing conditions for those individuals who will be covered by the new policy.

(d) The director may arrange with the company or companies from which the policy or policies of insurance authorized herein are purchased to reinsure portions of any contract or contracts of insurance with other insurance companies duly licensed in this state which elect to enter into contracts of reinsurance and are legally competent to do so. The director may annually redetermine the amount or amounts of coverage to be allocated to reinsuring companies in advance of any contract year after the first year.

(e) The director may designate one or more of those insurance companies as the administering company or companies.

(f) Each employee who is covered under any contract or contracts shall receive a certificate setting forth the benefits to which the employee and his or her dependents are entitled thereunder, to whom benefits shall be payable, to whom claims should be submitted, and summarizing the provisions of the contract principally affecting the employee and his or her dependents.

(g) The director may, on June 30, 1961, or at the end of any fiscal year thereafter, discontinue any insurance contract or contracts he or she has purchased from any corporation or corporations and replace it or them with a contract or contracts in any other corporation or corporations meeting the requirements of §§ 36-12-6 - 36-12-14.

History of Section. (P.L. 1960, ch. 119, § 1; P.L. 1988, ch. 433, § 1; P.L. 1996, ch. 326, § 6.)