Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 20 - Insurance › Subchapter 60 - Miscellaneous › Part 6 - Financial Institution Insurance Sales (230-RICR-20-60-6) › Section 230-RICR-20-60-6.2 - Definitions

Current through June 14, 2024
A. Unless otherwise defined in the Act, for
				  purposes of the Act and this Part, the following terms shall have the following
				  meanings:
1. "Affiliate" means any Company
				  that controls, is controlled by, or is under common control with another
				  Company.
2. "Commissioner" means
				  the Insurance Commissioner of the State of Rhode Island.
3. "Company" shall include any corporation,
				  partnership, business trust, association or similar organization or entity,
				  however formed.
4. A Company has
				  "Control" if:
a. The Company directly or
				  indirectly or acting through one or more other persons owns, controls, or has
				  power to vote twenty-five percent (25%) or more of any class of voting
				  securities of another entity,
b.
				  The Company controls in any manner the election of a majority of the directors
				  or trustees of another entity; or
c. The Department determines, after notice
				  and opportunity for hearing, that the Company directly or indirectly exercises
				  a controlling influence over the management or policies of another
				  entity.
5. "Department"
				  means the Department of Business Regulation.
6. "Financial institution" shall have the
				  meaning given to it in R.I. Gen. Laws §
											27-58-3, and shall also include
				  the meaning given to it in R.I. Gen. Laws §
											19-1-1.
7. "Insurance" shall have the meaning given
				  to it in R.I. Gen. Laws §
											27-58-3, except that for purposes
				  of the Act and this Part it shall not include insurance on property, which
				  insurance is offered as security for a loan or extension of credit, the benefit
				  of which may be used to pay the outstanding balance of such loan or extension
				  of credit in the event such property is damaged or destroyed, commonly known as
				  "credit property insurances."
8.
				  "Insurance producer" shall have the meaning given to it in R.I. Gen. Laws
				  §
											27-2.3-2(5).
9. "Insurance
				  transaction" means a contractual relationship wherein a Financial Institution
				  delivers or renews an Insurance policy on behalf of an insurance company for
				  which the Financial Institution is authorized to act as an Insurance Producer.
				  The term does not include a transaction in which the act of the Financial
				  Institution is an incidental component of the transaction, such as when the
				  Financial Institution is named as a "loss payee" or "mortgagee" or in which the
				  Financial Institution requires insurance as collateral for a loan or extension
				  of credit.
10. "Physical
				  separation" means any distinctive manner of separation from the deposit
				  gathering or lending area of a Financial Institution (including, for example,
				  but not limited to a separate building or walls, doors or dividers within an
				  area of the same building) which provides a separation which will minimize the
				  likelihood of confusion on the part of the customers of the Financial
				  Institution and would cause a reasonable customer to believe that the business
				  being conducted at that physically separate location is a different business
				  activity. In locations with only a single multi-purpose meeting room, the
				  Financial Institution may satisfy the intent of the Act by clearly
				  communicating to the customer the purpose for which the room is being used. In
				  no circumstances shall the room be used for the taking of federally-insured
				  deposits.
11. "Solicit" means the
				  act of Solicitation.
12.
				  "Solicitation" means a negotiation, effectuation, procurement, delivery,
				  renewal, continuation or binding of or otherwise offering Insurance. The term
				  does not include a referral to another employee of the Financial Institution or
				  a reference to written materials such as pamphlets, brochures or business
				  cards. The term also excludes discussions relating to Insurance made by an
				  employee of the trust department of a Financial Institution while engaged in
				  the business of providing estate planning or trust services.
13. "Subsidiary" means, with respect to a
				  Company,
a. Any Company twenty-five percent
				  (25%) or more of whose voting shares is directly or indirectly owned or
				  controlled by such Company, or is held by it with power to vote;
b. Any Company the election of a majority of
				  whose directors is controlled in any manner by such Company; or
c. Any Company with respect to the management
				  or policies of which such Company has the power, directly or indirectly, to
				  exercise a controlling influence, as determined by the Department, after notice
				  and opportunity for hearing.