Discount medical plan organizations operating in the State of Rhode Island must follow a new law titled HB 7606. The new law requires discount medical plan organizations to register and acquire a $100,000 surety bond. HB 7606 allows the Health Insurance Commissioner to utilize the surety bond at their discretion to secure the financial interest of the company’s members which includes reimbursement to consumers if the company’s registration is withdrawn. A state licensed insurance company must write the surety bond. Alternative types of security also would be authorized in place of the bond.
Eric is the Webmaster of JW Surety Bonds. With years of experience in the surety industry, he is also a contributing author to the surety bond blog.