2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-65 - Commercial Special Risks › Section 27-65-1. - Commercial special risks.

§ 27-65-1. Commercial special risks.
(a) Commercial special risks.
Notwithstanding any other provisions of this title to the contrary and except as limited in subsection (b) of this section, insurers shall not be required to file with, nor to receive approval from, the insurance division of the department of business regulation for policy forms or rates used in the insurance of commercial special risks located in this state. Commercial special risks are defined as:
(1)
Risks written as commercial lines insurance, defined as insurance issued for purposes other than for personal, family, or household and that are written on an excess or umbrella basis;
(2)
Those risks, or portions of them, written as commercial lines insurance, defined as insurance issued for purposes other than for personal, family, or household and that are not rated according to manuals, rating plans, or schedules including “A” rates;
(3)
Risks written as commercial lines insurance that employ or retain the services of a “risk manager” and that also meet any one of the following criteria:
(i)
Net worth over ten million dollars ($10,000,000);
(ii)
Net revenue/sales of over five million dollars ($5,000,000);
(iii)
More than twenty-five (25) employees per individual company or fifty (50) employees per holding company in the aggregate;
(iv)
Aggregate premiums of over thirty thousand dollars ($30,000), excluding group life, group health, workers’ compensation, and professional liability (including, but not limited to, errors and omissions and directors and officers liability);
(v)
Is a not-for-profit or public entity with an annual budget or assets of at least twenty-five million dollars ($25,000,000); or
(vi)
Is a municipality with a population of over twenty thousand (20,000);
(4)
Specifically designated commercial special risks including:
(i)
All risks classified as highly protected risks.
“Highly protected risk” means a fire resistive building that meets the highest standards of fire safety according to insurance company underwriting requirements;
(ii)
All commercial insurance aviation risks;
(iii)
All credit property insurance risks that are defined as “insurance of personal property of a commercial debtor against loss, with the creditor as sole beneficiary” or “insurance of personal property of a commercial debtor, with the creditor as primary beneficiary and the debtor as beneficiary of proceeds not paid to the creditor.” For the purposes of this definition, “personal property” means furniture, fixtures, furnishings, appliances, and equipment designed for use in a business, trade, or profession and not used by a debtor for personal or household use;
(iv)
All boiler and machinery and equipment breakdown risks;
(v)
All inland marine risks written as commercial lines insurance defined as insurance issued for purposes other than for personal, family, or household;
(vi)
All fidelity and surety risks;
(vii)
All crime and burglary and theft risks; and
(viii)
All directors and officers, fiduciary liability, employment practices liability, kidnap and ransom, and management liability risks.
(b)
Notwithstanding subsection (a) of this section, the following lines of business shall remain subject to all filing and approval requirements contained in this title even if written for risks that qualify as commercial special risks:
(1)
Life insurance;
(2)
Annuities;
(3)
Accident and health insurance;
(4)
Automobile insurance that is mandated by statute;
(5)
Workers’ compensation and employers’ liability insurance; and
(6)
Issuance through residual market mechanisms.
(c)
Any insurer that provides coverage to a commercial special risk shall disclose to the insured that forms used and rates charged are exempt from filing and approval requirements by this section. Records of all such disclosures shall be maintained by the insurer.
(d)
Brokers for exempt commercial policyholders as defined in subsection (a)(3) of this section shall be exempt from the due diligence requirements of § 27-3-38(c).
(e)
Notwithstanding any other provisions of this title, the requirements of § 27-5-2 shall not apply to any policy insuring one or more commercial special risks located in this state.
History of Section.
P.L. 1999, ch. 47, § 1; P.L. 2002, ch. 292, § 94; P.L. 2004, ch. 52, § 2; P.L. 2004, ch. 60, § 2; P.L. 2004, ch. 91, § 1; P.L. 2004, ch. 320, § 1; P.L. 2006, ch. 108, § 1; P.L. 2006, ch. 138, § 1; P.L. 2011, ch. 18, § 3; P.L. 2011, ch. 25, § 3; P.L. 2015, ch. 82, § 14; P.L. 2015, ch. 105, § 14; P.L. 2022, ch. 404, § 6, effective June 30, 2022; P.L. 2022, ch. 405, § 6, effective June 30, 2022; P.L. 2023, ch. 395, art. 1, § 22, effective December 31, 2023.