Chapter 287

2005 -- S 0542

Enacted 07/15/05

A N A C T

RELATING TO INSURANCE -- AGENTS, BROKERS AND SOLICITORS

Introduced By: Senator David E. Bates

Date Introduced: February 10, 2005

It is enacted by the General Assembly as follows:

     SECTION 1. Section 27-3-40 of the General Laws in Chapter 27-3 entitled "Agents,

Brokers, and Solicitors" is hereby amended to read as follows:

27-3-40. Limitations on placing insurance with approved surplus lines insurers. --

No person licensed to act as a surplus line broker in the state shall place any insurance with an

approved surplus lines insurer unless that insurer has furnished the commissioner with a certified

copy of its current annual statement or documentary evidence that it has investments in the

amount of at least two hundred fifty thousand dollars ($250,000) market value of bonds of the

United States, or of any state, county, or municipality of the United States, and in the event of an

alien insurer, a trust fund must be established and maintained in the United States in the amount

of not less than two hundred fifty thousand dollars ($250,000) five million dollars ($5,000,000),

for the protection of all of its policyholders in the United States; and met any other requirements

as determined by the insurance commissioner to be placed on Rhode Island's list of approved

surplus lines insurers. If at any time the commissioner determines, in his or her judgment, that an

approved surplus lines insurer is not in a safe or solvent financial condition, or has refused to pay

just claims, the commissioner shall direct that no insurance shall be placed with that insurer; upon

the commissioner's written notice to that effect mailed to licensees under this chapter, no

insurance shall be placed with that insurer.

     SECTION 2. This act shall take effect upon passage.     

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LC01716

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