230 R.I. Code R. 230-RICR-20-10-1.7 - Requirements for Medical Malpractice Self-Insurance

A. In order to qualify to self-insure an entity must either:

1. Qualify as a hospital affiliated with an accredited medical school that satisfies the requirements of R.I. Gen. Laws § 27-16-2.6; or

2. Obtain permission of the Department of Business to self-insure. The following requirements apply to entities seeking permission to self-insure:

a. The entity shall make a filing with the Department fully describing the self-insurance program.

b. The self-insurance program must be provided through a captive insurer or other approved self-insurance vehicle fully licensed and subject to the authority of the Department or other acceptable domiciliary jurisdiction.

c. The coverage provided by the self-insurance vehicle must meet the requirements of § 1.6 of this Part.

d. The entity must agree to file, on an annual basis on or before June 1 of each year, an audited certified financial statement and actuarial projections as to the soundness of its reserving as well as any other financial information requested by the Department.

e. The entity shall notify the Department of its intent to discontinue its self-insurance program ninety (90) days prior to its termination.

f. The entity shall provide whatever further information is requested by the Department.

B. Nothing in this Part shall prevent the self-insurance vehicles from obtaining reinsurance in whole or in part.

C. Employees and Affiliates

1. An entity that obtains permission pursuant to this section may include within that self-insurance program

a. health care facilities which are under common control with the entity, or

b. medical or dental professionals which provide health care services within the scope of their employment by that entity or who have entered into an agreement with the entity to participate in a common indemnity program.

2. An entity that satisfies the requirements of R.I. Gen. Laws § 27-16-2.6 may indemnify employees and affiliates within that program.

D. Nothing in this Part shall prevent the entity from partially insuring a portion of the risk.

1. If a hospital chooses to partially insure and partially self-insure, that fact should be set forth in the annual filing to the Department specifying the portions insured and self-insured.

2. All of the requirements listed in this section must be met for the self-insured portion of the risk.

Notes

230 R.I. Code R. 230-RICR-20-10-1.7