Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 20 - Insurance › Subchapter 45 - Financial Standards and Corporate Operations › Part 2 - Surrender and Non-Renewal of Licenses by Insurers (230-RICR-20-45-2) › Section 230-RICR-20-45-2.4 - Filing Requirements

Current through June 14, 2024
A. Effect of
				  Filing: Nothing contained in this Regulation shall preclude the Commissioner
				  from initiating a proceeding to revoke or suspend the applicant's license or
				  licenses.
B. Timing: An applicant
				  intending to surrender any license or part of any license shall submit all
				  documents required by §
										2.4(C)   of this Part no less than ninety (90) days
				  before the proposed effective date of the withdrawal.
C. Content of Plan: The applicant shall
				  submit to the Commissioner a withdrawal plan which shall contain the following:
1. A copy of all Rhode Island licenses
				  currently held by the applicant, indicating the date on which such licenses
				  were issued;
2. An organizational
				  chart indicating the relationship among the applicant and its
				  affiliates;
3. A provision that the
				  insurer will comply with all lawful fair claims practice requirements contained
				  in the insurance laws and applicable regulations of the Department;
4. A provision that insureds and producers of
				  record of affected inforce policies will be advised of the insurer's intention
				  to surrender a Rhode Island license. Such notice must be given no later than
				  thirty (30) days after the insurer files the withdrawal plan with the
				  Commissioner. Copies of the prototype notice the applicant intends to send to
				  its insureds and prototypes of any other notices of nonrenewal or cancellation
				  shall be submitted to the Commissioner. All such notices shall include the
				  following statement: "[Name of applicant] has submitted a withdrawal plan for
				  approval by the Commissioner of Insurance of the State of Rhode Island which
				  will result in the [applicant's] cessation of [Insert line(s) of insurance]
				  insurance in Rhode Island. Should the withdrawal plan be disapproved, you will
				  be notified."
5. A list of all of
				  the applicant's producers of record of affected Rhode Island business as of the
				  date of submission of the withdrawal plan.
6. A written statement that the insurer will
				  comply with all lawful rulings and directives pertaining to cessation of
				  business in Rhode Island issued by the governing bodies of the following
				  entities:
a. NWCRP
b. the Rhode Island Life and Health Insurance
				  Guaranty Association;
c. the
				  Federal Riot Reinsurance Reimbursement Fund;
d. the Rhode Island Insurers' Insolvency
				  Fund;
e. the Workers' Compensation
				  Insurance Fund;
f. Rhode Island
				  Auto Insurance Plan; and,
g. any
				  other residual market facility or other entity required by law.
7. A list and the amount of all
				  the applicant's deposits currently held by the General Treasurer of the State
				  of Rhode Island
8. A provision that
				  for as long as there exist any potential claims arising from any insurance
				  policy written by the applicant which insures a Rhode Island resident:
a. the applicant will fully honor its
				  obligations arising from any such policy;
b. the applicant will fully service all
				  outstanding policies, bonds, and surety lines or credit, including processing
				  all usual and customary endorsements that become effective while such policies
				  are in effect, subject to the applicant's normal underwriting
				  standards;
c. the applicant will
				  not unfairly discriminate against Rhode Island policyholders in its dividend
				  practices in those cases in which policies remaining in force provide for
				  dividends to be paid;
d. the
				  applicant will continue to submit annual statements to the Division of
				  Insurance, will continue to submit information to the entities identified in
				  §
												2.4(C)   of this Part upon request, will agree to examination by the
				  Division of Insurance as deemed necessary by the Commissioner, will pay the
				  costs of examination under applicable statutes until notice is given that
				  reports are no longer required, and will continue to operate in accordance with
				  and submit to the Commissioner's jurisdiction under R.I. Gen. Laws §
												27-16-1 et seq, provided, however,
				  that this subparagraph shall apply only if applicant is surrendering or
				  nonrenewing its authority to write all lines of insurance; and;
e. the Commissioner of Insurance will
				  continue as applicant's agent for service of process, if applicable.
9. A written statement that the
				  applicant will promptly pay all statutory assessments it is legally obligated
				  to pay.
10. If the applicant is
				  surrendering or nonrenewing its authority to write all lines of insurance, a
				  provision that the applicant will maintain a security deposit in an amount
				  sufficient to provide security for its outstanding liabilities including but
				  not limited to unearned premiums, policy reserves, policy liabilities, and
				  unpaid losses, including incurred but not reported losses, to Rhode Island
				  policyholders and claimants if the Commissioner so requires.
11. A written agreement that, upon the
				  Commissioner's request, the applicant will maintain a staffed service office in
				  Rhode Island and/or a toll free telephone number directly to the insurer's home
				  office for the use of the applicant's policyholders and claimants. The listing
				  of such telephone number in telephone directories in this state will not
				  constitute the solicitation of business in this state. Policyholders,
				  producers, and claimants shall be furnished with the telephone number with each
				  written communication from the insurer.
12. A provision that the insurer will have
				  responsible representatives available in Rhode Island for conferences or
				  discussions when required by the Commissioner.