Introduced By: Senator Breene
Date Introduced : January 27, 1998
It is enacted by the General Assembly as follows:
SECTION 1. Sections 27-2.3-2, 27-2.3-12, and 27-2.3-19 of the General Laws in Chapter 27-2.3 entitled "Single License Procedure Act" are hereby amended to read as follows:
27-2.3-2. Definitions. -- The following definitions apply to this chapter:
(1) "Commissioner of insurance" means the director of the department of business regulation.
(2) "Department" means the department of business regulation.
(3) "Firm" means any corporation, association, partnership or other legal entity.
(4) "Individual" means any private or natural person but shall not include a partnership, corporation, or association.
(5) "Insurance producer" means a person who solicits, negotiates, effects, procures, delivers, renews, continues or binds policies of insurance or who offers advice, counsel, opinion or service {ADD for risks residing, located or to be performed ADD} in this state. The term insurance producer does not include an excess or surplus lines agent or broker licensed pursuant to section 27-3-38.
(6) "License" means a document issued by the department of business regulation authorizing a person to act as an insurance producer for a class or classes of insurance specified in the document. The license itself does not create any authority, actual, apparent, or inherent, in the holder to represent or commit an insurance carrier.
(7) "Nonresident" means any person who is not a resident of Rhode Island as defined in subsection (9).
(8) "Person" means any natural person, corporation, association, partnership, or other legal entity.
(9) "Resident" means a person who either resides in Rhode Island or maintains an office in Rhode Island where the business of producing insurance is transacted and opts to designate Rhode Island as the residence for the purpose of licensure.
27-2.3-12. Licenses -- Denial -- Nonrenewal -- Suspension or revocation. -- (a) Any license issued under this chapter may be suspended, revoked, or nonrenewed, and any application for a license may be denied, if the department of business regulation finds that the licensee or applicant has:
(1) Made any materially untrue statement in the license application;
(2) Violated any law relating to the production of insurance, or violated any rule, regulation, subpoena, or order of the department or of an insurance commissioner of any state relating to the production of insurance;
(3) Obtained or attempted to obtain any license through misrepresentation or fraud;
(4) Improperly withheld, misappropriated, or converted to the person's own use any moneys belonging to policyholders, insurers, beneficiaries, or others received in the course of producing insurance;
(5) Intentionally or negligently misrepresented the terms of any actual or proposed insurance contract;
(6) Been convicted of a felony;
(7) Been determined to have violated the laws of this state relating to unfair trade practice or fraud;
(8) In the conduct of providing insurance while holding an insurance producer license, used fraudulent, coercive, or dishonest practices, or has been shown to be incompetent, untrustworthy, financially irresponsible, or a hazard to the public;
(9) Had an insurance producer license nonrenewed, suspended, or revoked in any other state, province, district, or territory;
(10) Forged another's name to an application for insurance;
(11) Cheated on an examination for an insurance license; or
(12) Knowingly accepted insurance business from an individual who is required to be licensed but is not licensed.
(b) In the event that the action by the department of business regulation is to nonrenew or to deny an application for a license, the department of business regulation shall notify promptly the applicant or licensee and advise, in writing, the applicant or licensee of the reason for the denial or nonrenewal of the license. The applicant or licensee may make written demand upon the commissioner of insurance within thirty (30) days for a hearing to review the action of the department of business regulation. The hearing shall be conducted in accordance with regulations of the department of business regulation for hearings pursuant to chapter 35 of title 42. The hearing officer may affirm, revoke, or modify the decision of the department of business regulation.
(c) The license of a firm may be suspended, revoked, nonrenewed, or denied if the department of business regulation finds after an evidentiary hearing conducted in accord with the regulations of the department of business regulation pursuant to chapter 35 of title 42, that an individual insurance producer licensee's violation of this section was known or should have been known by one or more of the partners, officers, directors, or managers acting on behalf of the firm and the violation was not reported to the department of business regulation in a timely manner or corrective action taken in a timely manner in relation thereto.
(d) The commissioner of insurance shall have the authority to
impose an administrative fine upon any person or firm that the
department of business regulation found to have violated this
chapter, in addition to or in lieu of any applicable denial, suspension,
or revocation of a license. The administrative fine may be imposed
only upon the conclusion of an evidentiary hearing as provided
in subsection (b) or (c). {DEL The administrative fine shall
be in an amount of not less than one hundred dollars ($100) nor
more than ten thousand dollars ($10,000). DEL}
(e) In the event that a license is terminated because the licensee obtained or attempted to obtain the license through misrepresentation or fraud, improperly withheld, misappropriated, or converted to the licensee's own use moneys belonging to others received in the course of producing insurance, or forged another's name to an application for insurance, the department of business regulation shall refer the matter to the department of the attorney general.
27-2.3-19. Persons exempt because of prior licensure. --
Any solicitor, broker, or agent licensed pursuant to chapter 3
of title 27 on {DEL January 1, 1994 DEL} {ADD December 31,
1993 ADD}, shall be granted a producer license without being required
to take and pass an examination or satisfy the prelicensing requirements
contained in this title upon his or her application on a form
prescribed by the department and payment of the fee prescribed
by this chapter. The person shall be subject to all other provisions
of this chapter.
SECTION 2. Section 27-3.2-2 of the General Laws in Chapter 27-3.2 entitled "Continuing Education Requirements" is hereby amended to read as follows:
27-3.2-2. Applicability. -- This chapter shall apply to resident {ADD and nonresident ADD} persons licensed to engage in the sale of the following lines of insurance:
(1) All lines of life insurance and health insurance;
(2) All lines of property and casualty insurance; and
(3) All other lines of insurance for which an examination is required for licensing.
SECTION 3. Section 27-10-3 of the General Laws in Chapter 27-10 entitled "Claim Adjusters" is hereby amended to read as follows:
27-10-3. Issuance of license. -- The insurance commissioner
may, upon the payment of a fee of fifty dollars ($50.00), issue
to any suitable person who is a resident of this state, or a resident
of any state {DEL granting licenses to residents of this state, DEL}
a license to act as an insurance claims adjuster, other than for
life and accident and health insurance, to negotiate for claim
adjustments with any qualified domestic insurance company or its
agents and with the authorized agents in the state of any foreign
insurance company duly admitted to do business in this state.
SECTION 4. This act shall take effect upon passage.
