§ 27-20.7-9. Compensation to the administrator.
(a) An administrator shall not enter into an agreement or understanding with an insurer in which the effect is to make the amount of the administrator’s commissions, fees, or charges contingent upon savings effected in the adjustment, settlement and payment of losses covered by the insurer’s obligations. This provision shall not prohibit an administrator from receiving performance-based compensation for providing hospital or other auditing services.
(b) This section shall not prevent the compensation of an administrator from being based on premiums or charges collected or the number of claims paid or processed.
History of Section.P.L. 2001, ch. 83, § 1; P.L. 2001, ch. 242, § 1.
Structure Rhode Island General Laws
Chapter 27-20.7 - Third Party Health Insurance Administrators
Section 27-20.7-1. - Short title.
Section 27-20.7-2. - Definitions.
Section 27-20.7-3. - Written agreement.
Section 27-20.7-4. - Payments to administrator.
Section 27-20.7-5. - Maintenance of records.
Section 27-20.7-6. - Approval of advertising.
Section 27-20.7-7. - Responsibilities of the insurer.
Section 27-20.7-8. - Premium collection and payment of claims.
Section 27-20.7-9. - Compensation to the administrator.
Section 27-20.7-10. - Notice and disclosure of charges and fees.
Section 27-20.7-11. - Delivery of materials.
Section 27-20.7-12. - Certificate of authority required.
Section 27-20.7-13. - Waiver of application for certification.
Section 27-20.7-14. - Annual report and filing fee.
Section 27-20.7-15. - Grounds for suspension or revocation of certificate of authority.
Section 27-20.7-16. - Unauthorized third party administrator business.