reglab/statecodes huggingface dataset:
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-2 - Foreign Insurance Companies › Section 27-2-26. - Business prohibited during suspension or revocation.

§ 27-2-26. Business prohibited during suspension or revocation.
Any insurance company or its insurance producers shall not make any contracts or issue any policies of insurance in the state after its revocation or suspension is effective or until its license is restored by the insurance commissioner.
History of Section.
P.L. 1992, ch. 445, § 3.
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-2 - Foreign Insurance Companies › Section 27-2-27. - Appeal from revocation or suspension.

§ 27-2-27. Appeal from revocation or suspension.
A company aggrieved by a revocation or suspension of its license may, within thirty (30) days from the effective date of the revocation or suspension, file a petition in the superior court for the county of Providence for a review of that action of the insurance commissioner. The court shall summarily hear and determine the question whether the ground for revocation or suspension specified in the notice of the insurance commissioner exists and may make any appropriate order or decree. If the order or decree is adverse to the petitioning company it may within twenty (20) days from the issuing of the order or decree appeal to the supreme court; in case of an appeal the revocation or suspension of the license of the company shall continue in full force until the final determination of the question by the supreme court, unless vacated by the insurance commissioner during the pendency of the appeal.
History of Section.
P.L. 1992, ch. 445, § 3.
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-2 - Foreign Insurance Companies › Section 27-2-28. - Determination of premium tax rate.

§ 27-2-28. Determination of premium tax rate.
The department of business regulation may participate in proceedings under § 44-17-1(d) to implement guidelines, directives, criteria, and may promulgate additional resulting rules and regulations pursuant to chapter 35 of title 42 as are necessary to implement § 44-17-1(d).
History of Section.
P.L. 2016, ch. 538, § 3.
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-2.1 - Additional Fees for Foreign Insurance Companies › Section 27-2.1-1. - New application fee.

§ 27-2.1-1. New application fee.
Any foreign insurance company applying for licensure within the state of Rhode Island to transact insurance business must upon filing of an application submit to the insurance commissioner a non-refundable application fee of one thousand, two hundred dollars ($1,200).
History of Section.
P.L. 1982, ch. 285, § 1; P.L. 2009, ch. 68, art. 12, § 5; P.L. 2013, ch. 31, § 1; P.L. 2013, ch. 36, § 1.
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-2.1 - Additional Fees for Foreign Insurance Companies › Section 27-2.1-2. - Review of application fee.

§ 27-2.1-2. Review of application fee.
Whenever any foreign insurance company has made application to transact insurance business within the state, the applicant shall be assessed for the actual time incurred in conducting the analysis in accordance with the expense calculation for examinations under § 27-13.1-7(a)(1).
History of Section.
P.L. 1982, ch. 285, § 1; P.L. 2009, ch. 68, art. 12, § 5; P.L. 2013, ch. 31, § 1; P.L. 2013, ch. 36, § 1.
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-2.1 - Additional Fees for Foreign Insurance Companies › Section 27-2.1-4. - Use of fees.

§ 27-2.1-4. Use of fees.
Any and all fees as prescribed by this chapter shall be paid to the general treasurer of the state of Rhode Island.
History of Section.
P.L. 1982, ch. 285, § 1; P.L. 2002, ch. 292, § 9.
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-2.2 - Domestication/Redomestication of Insurance › Section 27-2.2-1. - Domestication of foreign insurer.

§ 27-2.2-1. Domestication of foreign insurer.
Any foreign insurer may become a domestic insurer by complying with all of the requirements of law relative to the organization and licensing of a domestic insurer of the same type, and by filing with the insurance commissioner its articles of association, charter, or other organizational document, together with appropriate amendments to them adopted in accordance with the laws of this state bringing the articles of association, charter, or other organizational document into compliance with the laws of this state. The foreign insurer shall be entitled to the necessary or appropriate certificates and licenses to continue its business and to transact business in this state, and shall be subject to the authority and jurisdiction of this state. In connection with any domestication, the commissioner may waive any and all requirements for public hearings. No insurer domesticating into this state need merge, consolidate, transfer assets, or engage in any other reorganization, other than as specified in this section.
History of Section.
P.L. 1992, ch. 24, § 1.
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-2.2 - Domestication/Redomestication of Insurance › Section 27-2.2-2. - Effects of domestication.

§ 27-2.2-2. Effects of domestication.
Upon domestication in accordance with § 27-2.2-1, the foreign insurer shall become a domestic insurer organized under the laws of this state and have all the rights, privileges, immunities, and powers, and be subject to all applicable laws, duties, and liabilities, of domestic insurers of the same type. The domestic insurer shall then and after this possess all rights that obtained prior to the domestication to the extent permitted by the laws of this state, and be responsible and liable for all the liabilities and obligations that obtained prior to the domestication. The certificate of authority, insurance producers, appointments and licenses, rates, and other items that the insurance commissioner allows, in his or her discretion, which are in existence at the time any insurer licensed to transact the business of insurance in this state transfers its corporate domicile to this or any other state or jurisdiction by domestication, shall continue in full force and effect after the transfer if the insurer remains duly qualified to transact the business of insurance in this state. All transferring insurers qualified in this state shall notify the commissioner of the transfer of domicile and shall provide the commissioner any information and documentation that the commissioner may request. All outstanding policies of any transferring insurer shall remain in full force and effect.
History of Section.
P.L. 1992, ch. 24, § 1.
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-2.2 - Domestication/Redomestication of Insurance › Section 27-2.2-3. - Fees.

§ 27-2.2-3. Fees.
An insurer becoming a domestic insurer through the domestication procedure specified in § 27-2.2-1 shall pay to the commissioner the fees that would be payable by a similar domestic insurer organizing and becoming licensed, or transacting business, in this state. An insurer becoming a domestic insurer pursuant to § 27-2.2-1 shall pay to the insurance commissioner a filing fee in the amount of one thousand dollars ($1,000) for the filing required.
History of Section.
P.L. 1992, ch. 24, § 1.
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-2.2 - Domestication/Redomestication of Insurance › Section 27-2.2-4. - Conversion to foreign insurer.

§ 27-2.2-4. Conversion to foreign insurer.
(a)
Any domestic insurer may, upon the approval of, and compliance with any conditions as may be imposed by the insurance commissioner, transfer its domicile, in accordance with the laws of the other state or jurisdiction, to any other state or jurisdiction, and upon the transfer shall cease to be a domestic insurer, and its corporate or other legal existence in this state shall cease upon the filing of proof of the re-domestication with the insurance commissioner and upon payment of a filing fee in the amount of one thousand dollars ($1,000).
(b)
The insurer shall be admitted to this state as a foreign insurer if qualified as a foreign insurer, upon compliance with the qualification requirements for foreign insurers pursuant to chapter 2 of this title, to the extent not waived by the commissioner.
History of Section.
P.L. 1992, ch. 24, § 1.
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-2.4 - Producer Licensing Act › Section 27-2.4-1. - Purpose and scope.

§ 27-2.4-1. Purpose and scope.
(a)
This chapter governs the qualifications and procedures for the licensing of insurance producers. It simplifies and organizes some statutory language to improve efficiency, permits the use of new technology and reduces costs associated with issuing and renewing insurance licenses. This chapter does not apply to excess and surplus lines agents and brokers licensed pursuant to § 27-3-38 except as provided in §§ 27-2.4-10 and 27-2.4-17.
(b)
Whenever the words “agent”, “solicitor”, or “broker” and their plural construct are used in the context of a licensee pursuant to chapter 3 of this title and occur in this chapter, any general law, public law, act or resolution of the general assembly or department of business regulation, those words mean insurance producer, except for those provisions of law and regulation which govern excess and surplus lines agents or brokers licensed pursuant to § 27-3-38.
History of Section.
P.L. 2001, ch. 14, § 3; P.L. 2001, ch. 15, § 3.
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-2.4 - Producer Licensing Act › Section 27-2.4-3. - License required.

§ 27-2.4-3. License required.
A person shall not sell, solicit or negotiate insurance in this state for any class or classes of insurance unless the person is licensed for that line of authority in accordance with this chapter.
History of Section.
P.L. 2001, ch. 14, § 3; P.L. 2001, ch. 15, § 3.
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-2.4 - Producer Licensing Act › Section 27-2.4-4. - Fees.

§ 27-2.4-4. Fees.
(a)
Fees required by this chapter shall be as follows:
(1)
Initial insurance producer license: $ 55.00;
(2)
Annual insurance producer renewal: $ 55.00; and
(3)
Annual contracted producer report: $ 30.00 (per producer).
(b)
The insurance commissioner may by rule or regulation specify fees for letters of certification, clearance letters, duplicate licenses, and any other documents as well as fees for services and documents provided by or on behalf of the department that are reasonably determined by the insurance commissioner.
History of Section.
P.L. 2001, ch. 14, § 3; P.L. 2001, ch. 15, § 3; P.L. 2002, ch. 65, art. 13, § 24; P.L. 2007, ch. 85, § 1; P.L. 2007, ch. 211, § 1; P.L. 2008, ch. 144, § 1; P.L. 2008, ch. 198, § 1.
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-2.4 - Producer Licensing Act › Section 27-2.4-6. - Order to cease unlicensed activities.

§ 27-2.4-6. Order to cease unlicensed activities.
(a)
If the department has reason to believe that any person is conducting any activities requiring licensure under this chapter without obtaining a license, or who after the denial, suspension or revocation of a license conducts any activities requiring licensure under this chapter, the department may issue its order to that person commanding them to appear before the department at a hearing after issuance of that order to show cause why the department should not issue an order to that person to cease and desist from the violations of the provisions of this chapter. The order to show cause may be served on any person named in the order in the same manner that summons in a civil action may be served, or by mailing a copy of the order, certified mail, return receipt requested, to that person at any address at which he or she has done business or at which he or she lives. If upon that hearing the department is satisfied that the person is in fact violating any provision of this chapter, then the department may order that person, in writing, to cease and desist from that violation. All hearings shall be governed in accordance with the Administrative Procedures Act, chapter 35 of title 42. If that person fails to comply with an order of the department after being afforded a hearing, the superior court in the county where the insurance transaction took place has jurisdiction upon complaint of the department to restrain and enjoin that person from violating this chapter.
(b)
Any person who violates this section by operating without a license shall be guilty of a misdemeanor and fined an amount not exceeding one thousand dollars ($1,000) or imprisoned for a term not exceeding one year, or both. The matter shall be referred to the department of attorney general.
History of Section.
P.L. 2001, ch. 14, § 3; P.L. 2001, ch. 15, § 3; P.L. 2007, ch. 85, § 1; P.L. 2007, ch. 211, § 1.
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-2.4 - Producer Licensing Act › Section 27-2.4-7. - Application for examination.

§ 27-2.4-7. Application for examination.
(a)
A resident individual applying for an insurance producer license shall pass a written examination unless exempt pursuant to § 27-2.4-11. The examination shall test the knowledge of the individual concerning the lines of authority for which application is made, the duties and responsibilities of an insurance producer and the insurance laws and regulations of this state. Examinations required by this section shall be developed and conducted under rules and regulations prescribed by the insurance commissioner.
(b)
The insurance commissioner may make arrangements, including contracting with an outside testing service, for administering examinations and collecting a nonrefundable fee.
(c)
Each individual applying for an examination shall remit a nonrefundable fee as prescribed by the department pursuant to rule and regulation.
(d)
An individual who fails to appear for the examination as scheduled or fails to pass the examination, shall reapply for an examination and remit all required fees and forms before being rescheduled for another examination.
History of Section.
P.L. 2001, ch. 14, § 3; P.L. 2001, ch. 15, § 3.
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-2.4 - Producer Licensing Act › Section 27-2.4-8. - Application for license.

§ 27-2.4-8. Application for license.
(a)
A person applying for a resident insurance producer license shall make application to the insurance commissioner on the uniform application and declare under penalty of refusal, suspension or revocation of the license that the statements made in the application are true, correct and complete to the best of the individual’s knowledge and belief. Before approving the application, the insurance commissioner shall find that the individual:
(1)
Is at least eighteen (18) years of age;
(2)
Has not committed any act that is a ground for denial, suspension or revocation set forth in § 27-2.4-14;
(3)
Has paid the fees set forth in § 27-2.4-4; and
(4)
Has successfully passed the examinations for the lines of authority for which the person has applied.
(b)
A Rhode Island resident business entity acting as an insurance producer may elect to obtain an insurance producer license. Application shall be made using the uniform business entity application. Prior to approving the application, the commissioner shall find both of the following:
(1)
The business entity has paid the appropriate fees.
(2)
The business entity has designated a licensed producer responsible for the business entity’s compliance with the insurance laws and rules of this state.
(c)
The insurance commissioner may require any documents reasonably necessary to verify the information contained in an application.
(d)
Each insurer that sells, solicits or negotiates any form of limited line credit insurance shall provide to each individual whose duties will include selling, soliciting or negotiating limited line credit insurance a program of instruction that may be approved by the insurance commissioner.
History of Section.
P.L. 2001, ch. 14, § 3; P.L. 2001, ch. 15, § 3; P.L. 2007, ch. 85, § 1; P.L. 2007, ch. 211, § 1; P.L. 2008, ch. 144, § 1; P.L. 2008, ch. 198, § 1; P.L. 2011, ch. 18, § 1; P.L. 2011, ch. 25, § 1.
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-2.4 - Producer Licensing Act › Section 27-2.4-10. - Nonresident licensing.

§ 27-2.4-10. Nonresident licensing.
(a)
Unless denied licensure pursuant to § 27-2.4-14, a nonresident person shall receive a nonresident insurance producer license if:
(1)
The person is currently licensed as a resident and in good standing in his or her home state;
(2)
The person has submitted the proper request for licensure and has paid the fees required by § 27-2.4-4;
(3)
The person has submitted or transmitted to the insurance commissioner the application for licensure that the person submitted to his or her home state, or in lieu of that application, a completed uniform application; and
(4)
The person’s home state awards nonresident insurance producer licenses to residents of this state on the same basis.
(b)
The insurance commissioner may verify the insurance producer’s licensing status through the producer database maintained by the NAIC, its affiliates or subsidiaries.
(c)
A nonresident insurance producer who moves from one state to another state or a resident insurance producer who moves from this state to another state shall file a change of address and provide certification from the new resident state within thirty (30) days of the change of legal residence. No fee or license application is required.
(d)
Notwithstanding any other provision of this chapter, a person licensed as a surplus lines broker in his or her home state shall receive a nonresident surplus lines broker license pursuant to subsection (a) of this section. Except as provided in subsection (a) of this section, nothing in this section amends or supersedes any provision of chapter 3 of this title.
(e)
Notwithstanding any other provision of this chapter, a person licensed as a limited line credit insurance or other type of limited lines insurance producer in his or her home state shall receive a nonresident limited lines insurance producer license, pursuant to subsection (a) of this section, granting the same scope of authority as granted under the license issued by the insurance producer’s home state. For purposes of this section, “limited line insurance” is any authority granted by the home state which restricts the authority of the insurance producer to less than the total authority prescribed in associated major lines pursuant to § 27-2.4-9(a)(1) — (a)(8).
History of Section.
P.L. 2001, ch. 14, § 3; P.L. 2001, ch. 15, § 3.
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-2.4 - Producer Licensing Act › Section 27-2.4-11. - Exemption from examination.

§ 27-2.4-11. Exemption from examination.
(a)
An individual who applies for an insurance producer license in this state who was previously licensed for the same lines of authority in another state shall not be required to complete any pre-licensing education or examination, but shall be required to certify knowledge of Rhode Island law applicable to insurance producers. This exemption is only available if the person is currently licensed in that state or if the application is received within ninety (90) days of the cancellation of the applicant’s previous license and if the prior state issues a certification that, at the time of cancellation, the applicant was in good standing in that state or the state’s producer database records, maintained by the NAIC, its affiliates or subsidiaries, indicate that the insurance producer is or was licensed in good standing for the line of authority requested.
(b)
A person licensed as an insurance producer in another state who moves to this state shall make application within ninety (90) days of establishing legal residence to become a resident insurance producer pursuant to § 27-2.4-8. No pre-licensing education or examination shall be required of that person to obtain any line of authority previously held in the prior state except where the insurance commissioner determines otherwise by regulation.
History of Section.
P.L. 2001, ch. 14, § 3; P.L. 2001, ch. 15, § 3.
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-2.4 - Producer Licensing Act › Section 27-2.4-12. - Assumed names.

§ 27-2.4-12. Assumed names.
An insurance producer doing business under any name other than the insurance producer’s legal name is required to notify the insurance commissioner prior to using the assumed name.
History of Section.
P.L. 2001, ch. 14, § 3; P.L. 2001, ch. 15, § 3.
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-2.4 - Producer Licensing Act › Section 27-2.4-13. - Temporary licenses.

§ 27-2.4-13. Temporary licenses.
(a)
The insurance commissioner may issue a temporary insurance producer license for a period not to exceed one hundred eighty (180) days without requiring an examination if the insurance commissioner deems that the temporary license is necessary for the servicing of an insurance business in the following cases:
(1)
To the surviving spouse or court-appointed personal representative of a licensed insurance producer who dies or becomes mentally or physically disabled to allow adequate time for the sale of the insurance business owned by the insurance producer or for the recovery or return of the insurance producer to the business or to provide for the training and licensing of new personnel to operate the insurance producer’s business; or
(2)
To a member or employee of a business entity operated by a licensed insurance producer, upon the death or disability of that individual; or
(3)
To the designee of a licensed insurance producer entering active service in the armed forces of the United States of America; or
(4)
In any other circumstance where the insurance commissioner deems that the public interest will best be served by the issuance of this license.
(b)
The insurance commissioner may by order limit the authority of any temporary insurance producer in any way deemed necessary to protect the insured and the public. The insurance commissioner may require the temporary insurance producer to have a suitable sponsor who is a licensed insurance producer or insurer and who assumes responsibility for all acts of the temporary insurance producer and may impose other similar requirements designed to protect the insured and the public. The insurance commissioner may by order revoke a temporary license if the interest of the insured or the public are endangered. A temporary license may not continue after the owner or the personal representative disposes of the business.
History of Section.
P.L. 2001, ch. 14, § 3; P.L. 2001, ch. 15, § 3; P.L. 2007, ch. 85, § 1; P.L. 2007, ch. 211, § 1.
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-2.4 - Producer Licensing Act › Section 27-2.4-15. - Commissions.

§ 27-2.4-15. Commissions.
(a)
No insurer or insurance producer shall pay, directly or indirectly, any commission, service fee, brokerage, or other valuable consideration to any person for services as an insurance producer unless the person performing the service held a valid license regarding the class or classes of insurance as to which the service was rendered at the time the service was performed. No person, other than a person properly licensed in accordance with this chapter at the time the person performs services as an insurance producer, shall accept any commissions, service fee, brokerage, or other valuable consideration for the services. Acceptance of the consideration shall constitute operating without a license. This section shall not prevent payment or receipt of renewal or other deferred commissions to or by any person entitled to the payment or receipt under this chapter.
(b)
No person shall accept a commission, service fee, brokerage or other valuable consideration for selling, soliciting or negotiating insurance in this state if that person is required to be licensed under this chapter and is not licensed.
(c)
Renewal or other deferred commissions may be paid to a person for selling, soliciting or negotiating insurance in this state if the person was required to be licensed under this chapter at the time of the sale, solicitation or negotiation and was licensed at that time.
(d)
An insurer or insurance producer may pay or assign commissions, service fees, brokerages or other valuable consideration to an insurance agency or to persons who do not sell, solicit or negotiate insurance in this state, unless the payment would violate §§ 27-4-6 [repealed], 27-6-46 [repealed], 27-8-7, 27-9-44 [repealed], and 27-29-4 of the general laws of this state.
History of Section.
P.L. 2001, ch. 14, § 3; P.L. 2001, ch. 15, § 3; P.L. 2006, ch. 84, § 2; P.L. 2006, ch. 93, § 2.
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-2.4 - Producer Licensing Act › Section 27-2.4-15.1. - Compensation disclosure.

§ 27-2.4-15.1. Compensation disclosure.
(a)
Where any insurance producer or any affiliate of such producer receives any compensation from the customer for the initial placement of insurance, neither that producer nor the affiliate shall accept or receive any compensation from an insurer or other third-party for that placement of insurance unless the producer has, prior to the customer’s purchase of insurance:
(1)
Obtained the customer’s documented acknowledgment that such compensation will be received by the producer or affiliate; and
(2)
Provided a description of the method and factors utilized for calculating the compensation to be received from the insurer or other third-party for that placement.
(b)
This section shall not apply to:
(1)
A person licensed as an insurance producer who acts only as an intermediary between an insurer and the customer’s producer, for example: a managing general agent, a sales manager, or wholesale broker;
(2)
The placement of insurance in secondary or residual markets; or
(3)
A producer whose sole compensation for the placement is derived from commissions, salaries and other remuneration from the insurer.
(i)
Notwithstanding this provision, a producer shall, at the time of sale or no later than the delivery of the policy, disclose that they will be paid a commission by the company and may receive other performance based compensation. This does not apply to salaried employees of an insurance company.
(c)
For purposes of this section:
(1)
“Affiliate” means a person that controls, is controlled by or is under common control with the producer.
(2)
“Compensation from an insurer or other third-party” means payments, commissions, fees, awards, overrides, bonuses, contingent commissions, loans, stock options, gifts, prizes or any other form of valuable consideration, whether or not payable pursuant to a written agreement.
(3)
“Compensation from the customer” shall not include any fee or similar expense or any fee or amount collected by or paid to the producer that does not exceed an amount established by the commissioner.
(4)
“Customer” means the person signing the application or submission for insurance or the authorized representative of the insured actually negotiating the placement of insurance with the producer. A person shall not be considered a “customer” for purposes of this section if the person is:
(i)
A participant or beneficiary of an employee benefit plan; or
(ii)
Covered by a group or blanket insurance policy or group annuity contract sold, solicited or negotiated by the insurance producer or affiliate.
(5)
“Documented acknowledgement” means the customer’s acknowledgment obtained prior to the customer’s purchase of insurance.
(d)
An insurance producer may satisfy any requirements imposed by this section directly or through an affiliate.
History of Section.
P.L. 2005, ch. 113, § 1; P.L. 2005, ch. 116, § 1.
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-2.4 - Producer Licensing Act › Section 27-2.4-17. - Reciprocity.

§ 27-2.4-17. Reciprocity.
(a)
The insurance commissioner shall waive any requirements for a nonresident license applicant with a valid license from his or her home state, except the requirements imposed by § 27-2.4-10, if the applicant’s home state awards nonresident licenses to residents of this state on the same basis.
(b)
A nonresident insurance producer’s satisfaction of his or her home state’s continuing education requirements for licensed insurance producers shall constitute satisfaction of this state’s continuing education requirements if the nonresident insurance producer’s home state recognizes the satisfaction of its continuing education requirements imposed upon insurance producers from this state on the same basis.
History of Section.
P.L. 2001, ch. 14, § 3; P.L. 2001, ch. 15, § 3; P.L. 2003, ch. 80, § 1; P.L. 2003, ch. 81, § 1.
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-2.4 - Producer Licensing Act › Section 27-2.4-18. - Reporting of actions.

§ 27-2.4-18. Reporting of actions.
(a)
An insurance producer shall report to the insurance commissioner any administrative action taken against the insurance producer in another jurisdiction or by another governmental agency in this state within thirty (30) days of the final disposition of the matter. This report shall include a copy of the order, consent to order or other relevant legal documents.
(b)
Within thirty (30) days of the initial pre-hearing date, an insurance producer shall report to the insurance commissioner any criminal prosecution of the insurance producer taken in any jurisdiction. The report shall include a copy of the initial complaint filed, the order resulting from the hearing and any other relevant legal documents.
History of Section.
P.L. 2001, ch. 14, § 3; P.L. 2001, ch. 15, § 3.
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-2.4 - Producer Licensing Act › Section 27-2.4-19. - Fiduciary capacity of insurance producers — Misappropriation as theft.

§ 27-2.4-19. Fiduciary capacity of insurance producers — Misappropriation as theft.
That portion of all premiums or moneys which a licensed insurance producer collects from a policyholder and which is to be paid to an insurance company, its agents, or his or her employer because of the assumption of liability through the issuance of insurance contracts, or which the insurance producer collects from an insurance company or its agents and which is to be paid to a policyholder or claimant under any contract of insurance, shall be held by the insurance producer in a fiduciary capacity and shall not be misappropriated or converted to the insurance producer’s own use or illegally withheld by the insurance producer. Any insurance producer who converts or misappropriates these funds shall be held guilty of theft and punishable for theft as provided by law. Nothing contained in this section shall be deemed to require any insurance producer to maintain separate bank accounts or deposits for these funds if and so long as these funds held are reasonably ascertainable from the books of account and records of the insurance producer.
History of Section.
P.L. 2001, ch. 14, § 3; P.L. 2001, ch. 15, § 3.
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-2.4 - Producer Licensing Act › Section 27-2.4-20.1. - Revocation or modification of property and casualty insurance producer’s contract — Procedures.

§ 27-2.4-20.1. Revocation or modification of property and casualty insurance producer’s contract — Procedures.
(a)
No property and casualty insurance company shall cancel the authority of an insurance producer, having a contract with and placing such insurance with more than one property and casualty insurance company, unless the company gives written notice of its intent to cancel that insurance producer at least fourteen (14) months before the proposed effective date of any cancellation. In such case, no company shall allow the license of that insurance producer to expire unless the company gives written notice of its intent to do so at least fourteen (14) months before the proposed effective date of expiration because of cancellation. In addition, no company shall modify a contract with an insurance producer, unless the company gives written notice of its intent to modify the contract of that insurance producer at least one hundred eighty (180) days before the proposed effective date of the modification.
(b)
When a property and casualty insurance company cancels the authority of an insurance producer having a contract with and places such insurance with more than one property and casualty insurance company, under the provisions of this section, the company shall continue to renew the expiring policies of the insurance producer who has received notification of cancellation that meets its underwriting guidelines for a period of fourteen (14) months of the issuance of the notice at a rate of compensation to that insurance producer equal to that provided in the expiring contract.
(c)
The provisions of subsections (a) and (b) do not apply to a property and casualty insurance producer:
(1)
Convicted of a dishonest act related to his or her occupation as an insurance agent; or
(2)
Whose license to engage as an insurance producer was revoked; or
(3)
Whose company surrendered its license to do business in the state; or
(4)
Who is an employee of the insurance company.
History of Section.
P.L. 2012, ch. 211, § 2; P.L. 2012, ch. 243, § 2.
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-2.4 - Producer Licensing Act › Section 27-2.4-21. - Regulations.

§ 27-2.4-21. Regulations.
The insurance commissioner may, in accordance with Rhode Island law, promulgate reasonable rules and regulations as are necessary or proper to carry out the purposes of this chapter including, but not limited to, prelicensing requirements for applicants for an insurance producer license.
History of Section.
P.L. 2001, ch. 14, § 3; P.L. 2001, ch. 15, § 3; P.L. 2004, ch. 40, § 3; P.L. 2004, ch. 43, § 3.
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-2.4 - Producer Licensing Act › Section 27-2.4-22. - Severability.

§ 27-2.4-22. Severability.
If any provisions of this chapter, or the application of a provision to any person or circumstances, shall be held invalid, the remainder of the chapter, and the application of the provision to persons or circumstances other than those to which it is held invalid, shall not be affected.
History of Section.
P.L. 2001, ch. 14, § 3; P.L. 2001, ch. 15, § 3.
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-2.4 - Producer Licensing Act › Section 27-2.4-23. - Errors and omissions insurance required of resident insurance producers.

§ 27-2.4-23. Errors and omissions insurance required of resident insurance producers.
(a)
All holders of resident insurance producer licenses issued by the insurance division of the department of business regulation of the state of Rhode Island shall, as a condition for obtaining and retaining such license, carry and maintain errors and omissions insurance covering the business activities contemplated, in an amount not less than two hundred fifty thousand dollars ($250,000) per claim and five hundred thousand dollars ($500,000) annual aggregate limit. Authorized insurance producers of a licensed firm may meet the requirements of this section with a policy in the name of the licensed firm insuring each licensee employed by, or associated with, the firm.
(b)
Licensees shall maintain records and keep copies of all errors and omissions policies issued under this subsection.
(c)
Failure to carry and maintain errors and omissions insurance may result in the suspension or revocation of the resident insurance producer license.
(d)
This section shall not apply to insurance producers that are employed in that capacity directly by insurance companies.
(e)
The department of business regulation may grant a written exemption to any producer who shows that he/she is not engaged in the sale, solicitation or negotiation of insurance. Such exemption shall only be valid while the insurance producer is not engaged in the sale, solicitation or negotiation of insurance.
History of Section.
P.L. 2006, ch. 92, § 1; P.L. 2006, ch. 154, § 1; P.L. 2007, ch. 85, § 1; P.L. 2007, ch. 211, § 1.
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-2.6 - Rhode Island Title Insurers Act › Section 27-2.6-1. - Title and purpose.

§ 27-2.6-1. Title and purpose.
(a)
This chapter shall be known and may be cited as the “Rhode Island Title Insurers Act.”
(b)
The purpose of this chapter is to provide for the effective regulation and supervision of title insurance and title insurers licensed to write title insurance in this state.
History of Section.
P.L. 2010, ch. 58, § 1; P.L. 2010, ch. 66, § 1.
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-2.6 - Rhode Island Title Insurers Act › Section 27-2.6-2. - Application of act and construction with other laws.

§ 27-2.6-2. Application of act and construction with other laws.
(a)
This chapter shall apply to all persons engaged in the business of title insurance in this state.
(b)
Except where the context otherwise requires, all provisions of the Rhode Island general laws applying to insurance and insurance companies shall apply to title insurance insurers.
History of Section.
P.L. 2010, ch. 58, § 1; P.L. 2010, ch. 66, § 1.
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-2.6 - Rhode Island Title Insurers Act › Section 27-2.6-4. - Corporate form required.

§ 27-2.6-4. Corporate form required.
No person other than a domestic, foreign or non-United States title insurer organized on the stock plan licensed under title 27 as a title insurer shall issue a title insurance policy or otherwise transact the business of title insurance in this state.
History of Section.
P.L. 2010, ch. 58, § 1; P.L. 2010, ch. 66, § 1.
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-2.6 - Rhode Island Title Insurers Act › Section 27-2.6-5. - Authorized activities of title insurers.

§ 27-2.6-5. Authorized activities of title insurers.
Subject to the exceptions and restrictions contained in this chapter, a title insurer shall have the power to:
(1)
Do only title insurance business;
(2)
Reinsure title insurance policies; and
(3)
Perform ancillary activities, unless prohibited by the commissioner by regulation, including, examining titles to real property and any interest in real property and procuring and furnishing related information and information about relevant personal property, when not in contemplation of, or in conjunction with, the issuance of a title insurance policy.
History of Section.
P.L. 2010, ch. 58, § 1; P.L. 2010, ch. 66, § 1.
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-2.6 - Rhode Island Title Insurers Act › Section 27-2.6-6. - Limitations on powers.

§ 27-2.6-6. Limitations on powers.
(a)
No insurer that transacts any class, type, or kind of business other than title insurance shall be eligible for the issuance or renewal of a license to transact the business of title insurance in this state, nor shall title insurance be transacted, underwritten, or issued by any insurer transacting or licensed to transact any other class, type, or kind of business.
(b)
A title insure shall not engage in the business of guaranteeing payment of the principal or the interest of bonds or mortgages.
(c)(1)
Notwithstanding subsection (a) of this section, and to the extent such coverage is lawful within this state, a title insurer is expressly authorized to issue closing or settlement protection to a proposed insured upon request if the title insurer or its title agent issues a preliminary report, binder, or title insurance policy. Such closing or settlement protection must be provided in connection with the issuance of any loan policy insuring a lender’s interest in residential property intended for residential occupancy containing four (4) or less units. Nothing in this section shall prohibit the title insurer from providing such closing or settlement protection in connection with the issuance of any loan policy insuring a lender’s interest in any other type of residential or commercial property. The closing or settlement protection shall conform to the terms of coverage and form of instrument as approved by the commissioner and may indemnify a proposed insured solely against loss of settlement funds only because of the following acts of a title insurer’s named title insurance agent:
(i)
Theft of settlement funds; and
(ii)
Failure to comply with written closing instructions by the proposed insured when agreed to by the title insurance agent relating to title insurance coverage.
(2)
The fee charged by a title insurer for each party receiving closing protection coverage shall be filed with, and approved by, the commissioner pursuant to § 27-2.6-16. The fee shall not be subject to any agreement requiring a division of fees or premiums collected on behalf of the title insurer. The single fee shall be for the protection of all parties receiving the benefit of closing protection, to wit: The buyer(s) or borrower(s) and the lender(s) in connection with the real property transaction giving rise to the issuance of the closing or settlement protection.
(3)
A title insurer shall not provide any other coverage that purports to indemnify against improper acts or omissions of a person with regard to escrow, settlement, or closing services, except for an insured closing letter in a form approved by the department.
History of Section.
P.L. 2010, ch. 58, § 1; P.L. 2010, ch. 66, § 1; P.L. 2014, ch. 354, § 1; P.L. 2014, ch. 393, § 1.
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-2.6 - Rhode Island Title Insurers Act › Section 27-2.6-7. - Minimum capital and surplus requirements.

§ 27-2.6-7. Minimum capital and surplus requirements.
Before being licensed to do insurance business in this state, a title insurer shall establish and maintain a minimum paid-in capital of not less than five hundred thousand dollars ($500,000) and, in addition, paid-in initial surplus of at least five hundred thousand dollars ($500,000).
History of Section.
P.L. 2010, ch. 58, § 1; P.L. 2010, ch. 66, § 1.
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-2.6 - Rhode Island Title Insurers Act › Section 27-2.6-8. - Admitted asset standards.

§ 27-2.6-8. Admitted asset standards.
In determining the financial condition of a title insurer doing business under this chapter, the investment provisions of chapters 11 and 11.1 of this title shall apply, except that an investment in a title plant or plants in an amount equal to the actual cost shall be allowed as an admitted asset for title insurers. The aggregate amount of the investment shall not exceed the lesser of twenty percent (20%) of admitted assets or forty percent (40%) of surplus to policyholders, as shown on the most recent annual statement of the title insurer on file with the commissioner.
History of Section.
P.L. 2010, ch. 58, § 1; P.L. 2010, ch. 66, § 1.
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-2.6 - Rhode Island Title Insurers Act › Section 27-2.6-9. - Reserves.

§ 27-2.6-9. Reserves.
In determining the financial condition of a title insurer doing business under this chapter, the Rhode Island general laws requiring the establishment of reserves sufficient to cover all known and unknown liabilities including allocated and unallocated loss adjustment expense, shall apply, except that a title insurer shall establish and maintain additional reserves in accordance with regulations promulgated by the insurance commissioner.
History of Section.
P.L. 2010, ch. 58, § 1; P.L. 2010, ch. 66, § 1.
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-2.6 - Rhode Island Title Insurers Act › Section 27-2.6-10. - Liquidation, dissolution or insolvency.

§ 27-2.6-10. Liquidation, dissolution or insolvency.
(a)
Chapter 14.3 of this title shall apply to all title insurers subject to the Title Insurance Act, except as otherwise provided in this section. In applying the provisions of chapter 14.3 of this title, the court shall consider the unique aspects of title insurance and shall have broad authority to fashion relief that provides for the maximum protection of the title insurance policyholders.
(b)
Security and escrow funds held by or on behalf of the title insurer shall not become general assets and shall be administered as secured creditor claims defined in chapter 14.3 of this title.
(c)
Title insurance policies that are in force at the time an order of liquidation is entered shall not be canceled except upon a showing to the court of good cause by the liquidator. The determination of good cause shall be within the discretion of the court. In making this determination, the court shall consider the unique aspects of title insurance and all other relevant circumstances.
(d)
The court may set appropriate dates that potential claimants must file their claims with the liquidator. The court may set different dates for claims based upon the title insurance policy than for all other claims. In setting dates, the court shall consider the unique aspects of title insurance and all other relevant circumstances.
(e)
As of the date of the order of insolvency or liquidation, all premiums paid, due or to become due under policies of the title insurers, shall be fully earned. It shall be the obligation of agents, insureds or representatives of the title insurer to pay fully earned premium to the liquidator or rehabilitator.
History of Section.
P.L. 2010, ch. 58, § 1; P.L. 2010, ch. 66, § 1.
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-2.6 - Rhode Island Title Insurers Act › Section 27-2.6-11. - Diversification requirement.

§ 27-2.6-11. Diversification requirement.
(a)
Without the prior written approval of the commissioner, a domestic title insurer shall not accept:
(1)
Additional business from a title insurance agent that is not an affiliated company with the insurer if, when added to other business written through the title insurance agent during the same calendar year, that agent’s aggregate premiums written on behalf of the title insurer will exceed twenty percent (20%) of the title insurer’s gross premiums written during the prior calendar year, as shown on the title insurer’s most recent annual statement on file with the commissioner; or
(2)
Additional direct operations business from a single source if, when added to other direct operations business from the single source during the same calendar year, the aggregate premiums written on the direct operations business of the single source will exceed twenty percent (20%) of the title insurer’s gross premiums written during the prior calendar year as shown on the title insurers most recent annual statement on file with the commissioner. For purposes of this section a “single source” means a person that refers business to the title insurer and any other person that controls, is controlled by, or is under common control with, that person.
(b)
In determining whether prior approval may be given, the commissioner shall consider:
(1)
The potential that the acceptance of more business from the title agent or source may adversely affect the financial solvency of the title insurer;
(2)
The availability of competing title agents or additional sources in the territories in which the title insurer accepts risks;
(3)
The number of years the title insurer has been in business;
(4)
Reinsurance arrangements mitigating the concentration of business from the agent or source;
(5)
The comparative profitability of the agent’s or source’s book of business;
(6)
The degree of oversight of the agent’s operations exercised by the title insurer; and
(7)
Any other circumstances deemed by the commissioner to be appropriate.
History of Section.
P.L. 2010, ch. 58, § 1; P.L. 2010, ch. 66, § 1.