Introduced By: Senators Irons, Bates and Blais
Date Introduced : February 9, 1999
It is enacted by the General Assembly as follows:
SECTION 1. Section 27-2.3-22 of the General Laws in Chapter 27-2.3 entitled "Single License Procedure Act" is hereby amended to read as follows:
27-2.3-22. Errors and omissions insurance required of insurance
producers. -- (a) {ADD Except as otherwise specifically
provided below, all ADD} {DEL All DEL} holders of insurance
producers licenses by the insurance division of the state of Rhode
Island department of business regulation shall, as a condition
of retaining the license, carry and maintain errors and omissions
insurance covering all 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.
{ADD Insurance producers who are employee- agents, independent
contractor exclusive agents or captive agents of an insurer may
also meet the requirements of this section, (i) if the insurer
has in its name an errors and omissions policy insuring each such
producer, or (ii) if the insurer agrees in writing to assume responsibility
for all errors and omissions claims against such producer, whether
directly or in combination with all group errors and omissions
coverage otherwise obtained by the insurer. ADD} This policy {ADD or
coverage ADD} must comply with the terms and conditions to be determined
by the department of business regulation under section 27-2.3-22(b).
(b) The insurance division of the department of business regulation shall determine the terms and conditions of coverage mandated under this section, including, but not limited to, the minimum limits of coverage, the permissible deductible, and permissible exemptions. The department of business regulation shall seek the assistance of insurance agents associations located in Rhode Island {ADD and insurers licensed to write business in Rhode Island ADD}as to the terms and conditions of coverage.
(c) The errors and omissions insurance requirement mandated by this section shall become effective January 1, 1995.
SECTION 2. This act shall take effect upon passage.
