Introduced By: Senator Breene
Date Introduced : February 3, 1999
It is enacted by the General Assembly as follows:
SECTION 1. Section 27-1-1 of the General Laws in Chapter 27-1 entitled "Domestic Insurance Companies" is hereby amended to read as follows:
27-1-1. Site of principal office and records. --
Every insurance company organized after May 3, 1956, under the
laws of this state shall have its principal office and maintain
all of its records, or duplicates thereof, in this state; provided,
however, that the director of business regulation may, after a
public hearing, allow any insurance company, upon application,
to locate its principal office and maintain {DEL its DEL}
{ADD certain ADD} original records outside of this state {ADD if it
is determined that it is not inconsistent with the public interest
of the people of the State of Rhode Island. ADD} {DEL , provided,
those companies shall: DEL}
{DEL (1) Employ less than six (6) people on a full time basis
as of the date of the application of transfer, excluding officers
and directors; DEL}
{DEL (2) Have less than one hundred million dollars ($100,000,000)
in face value of life insurance policies in force and less than
five million dollars ($5,000,000) on all other combined forms
of insurance in force; DEL}
{DEL (3) Deposit with the general treasurer of the state of
Rhode Island, United States government, state, municipal, or other
agencies thereof, securities having a market value at all times
of at least two hundred fifty thousand dollars ($250,000) which
are to be held for the benefit and protection of all policyholders
of the company; DEL}
{DEL (4) Establish within the state a registered office, registered
agent, and/or a person duly authorized to accept all service of
process on behalf of the company; DEL}
{DEL (5) Establish a claims office and authorize the appointment
of a claims person; DEL}
{DEL (6) Submit to the insurance division of the department
of business regulation certified audits on or before March 31
of each year performed by independent public accountants; and DEL}
{DEL (7) Establish a location outside of this state that is
not inconsistent with the public interest of the people of the
state of Rhode Island. DEL}
{ADDIn determining what is not inconsistent with the public
interest of the people of the State of Rhode Island, the director
shall make findings of fact, reduced to writing and filed with
the Secretary of State, which findings shall include, but not
be limited to the following:
a) The number of full time employees currently located within the State, and the number of full time employees anticipated to be located within the State if the petition is granted; and
b) That no detriment nor prejudice will inure to any current or anticipated future policyholders of the company by granting the application; and
c) That the granting of the application is not inimicable to the ability of policyholders to file claims with and against the company, and, in furtherance of this finding, may require that the company maintain a toll free number for registering claims, and {ADD may ADD} require a claims office be located within the State, staffed by a person authorized to issue payment on behalf of the company on approved claims; and
{DEL d) That a review of the financial records of the company have
satisfied the Director that the company is able to meet its obligations
to current policyholders and anticipated future policyholders
within the State, and the records relied upon by the Director
in making the determination. DEL}
{ADDThat a review of the financial records of the company and the records relied upon by the Director in making the determination have satisfied the Director that the company is able to meet its obligations to current policyholders. ADD}
In the event that there is any risk
associated with the granting the application the Director may
deny the application or may, in furtherance thereof, may require
the posting of bonds and/or securities with the General Treasurer,
in an amount to be determined by the Director, sufficient to protect
the interest of the policyholders within the State; and
e) The Director is authorized to promulgate regulations as provided for by the Administrative Procedures Act, not inconsistent with the foregoing, in furtherance of the authority herein granted. ADD}
SECTION 2. This act shall take effect upon passage.
