Effective August 31, 2010, the Rhode Island Office of the Health Insurance Commissioner (“OHIC”) will impose a readability requirement for all health insurance policies to be readable at the eighth grade level measured by the Flesch-Kincade formula.  The readability requirement comes in response to Rhode Island’s low adult literacy rate, and is designed to protect consumers by making health insurance policies, which are often complicated, easy to understand.

The OHIC has established specific readability standards for group and individual policy forms, contracts, certificates or agreements delivered, issued for delivery or renewed in Rhode Island.   Policies failing to meet the requirements will not be approved.  In establishing the standards, the OHIC recognized that certain policy terms may be impossible to restate in simplified language (e.g. medical terminology); as such, companies will not be penalized for using such terms.  Riders, endorsements, applications and other forms may be scored under the Flesch-Kincade formula as separate forms, or as part of the policy with which they are used.  Policy forms must be accompanied by an officer’s certificate from the insurer setting forth the Flesch-Kincade grade score.  The OHIC may authorize a higher reading standard under certain circumstances.

Click here for a copy of the regulation imposing readability standards.