It is enacted by the General Assembly as follows:

SECTION 1. Section 44-17-1 of the General Laws in Chapter 44-17 entitled "Taxation of Insurance Companies" is hereby amended to read as follows:

{ADD 44-17-1. Companies required to file -- Payment of tax -- Retaliatory rates. -- ADD} Every domestic, foreign, or alien insurance company, mutual association, organization, or other insurer, except companies mentioned in section 44-17-6, and organizations defined in section 27-25-1, transacting business in this state, shall, on or before the first day of March in each year, file with the tax administrator, in such form as he or she may prescribe, a return under oath or affirmation signed by a duly authorized officer or agent of the company, containing such information as may be deemed necessary for the determination of the tax herein imposed, and shall at the same time pay an annual tax to the tax administrator of two percent (2%) of the gross premiums on contracts of insurance except ocean marine insurance, as referred to in section 44-17-6, covering property and risks within the state, written during the calendar year ending December 31st next preceding, but in the case of foreign or alien companies, {ADD except as provided in section 27-2-17(d) ADD} the tax shall be not less in amount than is imposed by the laws of the state or country under which the companies are organized upon like companies incorporated in this state or upon its agents, if doing business to the same extent in the state or country.

SECTION 2. Section 27-2-17 of the General Laws in Chapter 27-2 entitled "Foreign Insurance Companies" is hereby amended to read as follows:

{ADD 27-2-17. Reciprocal fees and charges. -- ADD} (a) Whenever, by the laws of any other state of the United States, any fees, charges, taxes, deposits of money or of securities or other obligations or prohibitions are imposed on insurance companies incorporated or organized under the laws of this state or on the agents of the insurance companies, so long as the laws continue in force, the fees, charges, taxes, deposits, and obligations shall be imposed on the insurance companies doing business in this state which are incorporated or organized under the laws of the other state and on their agents.

(b) Whenever, by the laws of any other state of the United States, insurance companies incorporated or organized under the laws of this state are required to provide a countersignature as a pre-condition to the issuance, delivery, or making of any contract of insurance in the other state, and whenever the agent of the company is required to pay any fee or commission for placing any insurance coverage in the other state, then the same requirements for countersignatures and fee or commission shall be imposed upon the insurance companies doing business in this state which are incorporated and organized under the laws of the other states and/or their agents.

(c) Whenever insurance companies that are authorized to do business in this state issue, deliver, or make any contract of insurance on a person or property in this state, the companies shall place the business through a licensed resident agent or licensed nonresident agent as permitted under section 27-2-3 or any other provision of Rhode Island law; provided, however, if the insurance to be issued in this state is part of an insurance contract written on a risk whose principle place of business is located in another state, and the insurance contract is placed through an agent of the domiciliary state of the primary insured, it shall be permitted only if that state allows the placement of the business by a licensed nonresident agent of Rhode Island in like circumstances.

{ADD (d) The provisions of this section shall not apply to insurance companies incorporated or organized under the laws of a state or country whose laws do not impose rataliatory taxes or other charges or which grant, on a reciprocal basis, exemptions therefrom to insurance companies incorporated or organized under the laws of this state. ADD}

SECTION 3. This act shall take effect upon passage.