§ 27-20.1-7. Investment standards.
(a) All nonprofit dental service corporations shall protect the interests of subscribers by promoting company solvency and financial strength through the application of investment standards that facilitate a reasonable balance of the following objectives:
(1) To preserve principal;
(2) To assure reasonable diversification as to type of investment, issuer and credit quality; and
(3) To allow the nonprofit medical service corporation to allocate investments in a manner consistent with principles of prudent investment management to achieve an adequate return so that obligations to subscribers are adequately met and financial strength is sufficient to cover reasonably foreseeable contingencies.
(b) All investments, including, but not limited to, those referred to in this chapter, shall be made and held in accordance with the objectives in subsection (a) of this section subject to the limitations set forth in this chapter and in regulations promulgated pursuant to this chapter. Investments not conforming to this chapter and any regulations promulgated pursuant to this chapter are not considered admitted assets.
History of Section.P.L. 1959, ch. 183, § 1; P.L. 1999, ch. 45, § 3.
Structure Rhode Island General Laws
Chapter 27-20.1 - Nonprofit Dental Service Corporations
Section 27-20.1-1. - Definitions.
Section 27-20.1-2. - Organization.
Section 27-20.1-3. - Contracts.
Section 27-20.1-4. - Annual and quarterly statements.
Section 27-20.1-5. - Examination of affairs of corporation.
Section 27-20.1-6. - Commission plans for solicitors or insurance producers.
Section 27-20.1-7. - Investment standards.
Section 27-20.1-8. - Corporation deemed public charitable institution.
Section 27-20.1-9. - Adoption of chapter by hospital service corporation.
Section 27-20.1-10. - Nonprofit dental service corporation assessment.
Section 27-20.1-11. - Rehabilitation, liquidation, or conservation.
Section 27-20.1-12. - Holding company systems.
Section 27-20.1-12.1. - No derogation of attorney general.
Section 27-20.1-13. - Regulations.
Section 27-20.1-14. - Reserves.
Section 27-20.1-15. - Drug coverage.
Section 27-20.1-16. - Magnetic resonance imaging — Quality assurance standards.
Section 27-20.1-17. - Termination of children’s benefits.
Section 27-20.1-18. - Dental insurance assignment of benefits.
Section 27-20.1-19. - Post-payment audits.
Section 27-20.1-20. - Plan change notices.