Chapter
154
2006 -- S 2588 SUBSTITUTE A
Enacted 06/16/06
A N A C T
RELATING TO INSURANCE
-- ERRORS AND OMISSIONS INSURANCE FOR RESIDENT PRODUCERS
Introduced By: Senator David E. Bates
Date Introduced: February
09, 2006
It
is enacted by the General Assembly as follows:
SECTION
1. Chapter 27-2.4 of the General Laws entitled "Producer Licensing
Act" is
hereby
amended by adding thereto the following section:
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. 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 and shall make this information available to the public
and insurance
division
upon request.
(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.
SECTION
2. This act shall take effect on January 1, 2007.
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LC01381/SUB A
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