(a) The rates proposed to be charged or a rating formula proposed to be used by any insurer or health maintenance organization under this section to employers, the state or any political subdivision of the state, or individuals, shall be filed by the insurer or health maintenance organization at the office of the director of business regulation. This section does not apply to any entity subject to § 27-19-1 et seq., and/or § 27-20-1 et seq. The rates proposed to be charged by those entities shall be governed by the provisions of § 27-19-1 et seq., and/or § 27-20-1 et seq. Within sixty (60) days after receipt of the application, the director, or the director's designee, may hold a hearing upon not less than ten (10) days' written notice prior to the hearings. The notice shall contain a description of the rates proposed to be charged, and a copy of the notice shall be sent to the applicant and to the consumer protection unit of the department of attorney general. At any hearing held under this section, the applicant shall be required to establish that the rates proposed to be charged or the rating formula proposed to be used are consistent with the proper conduct of its business and with the interest of the public. Any documents presented in support of a filing of proposed rates under this section shall be made available for public examination at any time and place that the director may deem reasonable. The director, or the director's designee, upon that hearing may administer oaths, examine and cross-examine witnesses, receive oral and documentary evidence, and shall have the power to subpoena witnesses, compel their attendance and require the production of all books, papers, records, correspondence, or other documents which he or she deems relevant. Any designee who shall conduct a hearing pursuant to this section shall report his or her findings in writing to the director within eighty (80) days of the filing with a recommendation for approval, disapproval, or modification of the rates proposed to be charged by the applicant. The recommended decision shall become part of the record. The director shall make and issue a decision not later than ten (10) days following the issuance of the recommended decision or, if the director hears the application without the appointment of a designee, as soon as is reasonably possible following the completion of the hearing on the proposed rate change. The decision may approve, disapprove, or modify the rates proposed to be charged by the applicant. Insurers requesting changes in rates shall underwrite the reasonable expenses of the department of business regulation in connection with the hearing, including any costs related to advertisements, stenographic reporting, and expert witnesses fees. Notwithstanding any other provisions of law, the filing of proposed rates or a rating formula and the holding and conduct of any hearings in connection with these proposed rates or rating formula shall be pursuant to this section.
(b) Whenever the term "designee" is used in this section, it shall mean a person who is impartial, a member in good standing of the Rhode Island bar and a person who is sufficiently acquainted with the rules of evidence as used in the superior court of the state so as to enable that person to conduct a hearing as designee of the director. The reasonable per diem cost of the designee as appointed by the director shall be paid by the insurers requesting changes in the rates.
History of Section.
P.L. 1974, ch. 50, § 1; P.L. 1981, ch. 199, § 1; P.L. 1982, ch. 294, § 1; P.L. 1996, ch. 356, § 1; P.L. 2004, ch. 540, § 1; P.L. 2004, ch. 585, § 1; P.L. 2005, ch. 43, § 4; P.L. 2005, ch. 86, § 4; P.L. 2016, ch. 145, § 3; P.L. 2016, ch. 156, § 3.