SECTION 1. Section 1 of Chapter 176H of the General Laws, as appearing in the 2022 Official Edition, is hereby amended by inserting after the definition of “Covered legal services,” the following definition: -
"Independent prepaid legal services plan'', means a non-indemnity plan, regardless of the benefits, where legal services are available to members, or their dependents, through an organization that contracts directly with independent attorneys for the provision of the legal services and the organization pays the independent attorney via a capitated arrangement and the independent attorney receives no additional payment or reimbursement from the organization for specified legal services or specified legal expenses.
SECTION 2. Said chapter shall be further amended by inserting after section 19 the following section: -
Section 20. Exemptions
For purposes of this chapter an independent prepaid legal services plan shall not be considered an insured legal services plan or a membership legal services plan and any person, group of persons, organization or entity establishing, operating, offering or selling an independent prepaid legal services plan shall be exempt from the requirements imposed by this chapter.
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