(a)  An insurer may be subject to administrative supervision by the commissioner if upon examination or at any other time it appears in the commissioner’s discretion that:

(1)  The insurer’s condition renders the continuance of its business hazardous to the public or to its insured;

(2)  The insurer appears to have exceeded its powers granted under its certificate of authority and applicable law;

(3)  The insurer has failed to comply with the applicable provisions of the insurance code;

(4)  The business of the insurer is being conducted fraudulently; or

(5)  The insurer gives its consent.

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Terms Used In Rhode Island General Laws 27-14.1-3

  • Consent: means agreement to administrative supervision by the insurer;

    (2)  "Exceeded its powers" means the following conditions:

    (i)  The insurer has refused to permit examination of its books, papers, accounts, records, or affairs by the commissioner, his or her deputies, employees or duly commissioned examiners;

    (ii)  A domestic insurer has unlawfully removed from this state books, papers, accounts, or records necessary for an examination of the insurer;

    (iii)  The insurer has failed to promptly comply with the applicable financial reporting statutes or rules and departmental requests relating thereto;

    (iv)  The insurer has neglected or refused to observe an order of the commissioner to make good, within the time prescribed by law, any prohibited deficiency in its capital, capital stock or surplus;

    (v)  The insurer is continuing to transact insurance or write business after its license has been revoked or suspended by the commissioner;

    (vi)  The insurer, by contract or otherwise, has unlawfully or has in violation of an order of the commissioner or has without first having obtained written approval of the commissioner if approval is required by law:

    (A)  Totally reinsured its entire outstanding business; or

    (B)  Merged or consolidated substantially its entire property or business with another insurer;

    (vii)  The insurer engaged in any transaction in which it is not authorized to engage under the laws of this state; or

    (viii)  The insurer refused to comply with a lawful order of the commissioner;

    (3)  "Insurer" means and includes every person engaged as indemnitor, surety or contractor in the business of entering into contracts of insurance or of annuities as limited to:

    (i)  Any insurer who is doing an insurer business, or has transacted insurance in this state, and against whom claims arising from that transaction may exist now or in the future; and

    (ii)  Any fraternal benefit society which is subject to the provisions of this title; and

    (iii)  Any insurer writing "mono line business" which means any insurer, which deals exclusively in surety bonding. See Rhode Island General Laws 27-14.1-1

  • Continuance: Putting off of a hearing ot trial until a later time.

(b)  If the commissioner determines that the conditions set forth in subsection (a) of this section exist, the commissioner shall:

(1)  Notify the insurer of his or her determination;

(2)  Furnish to the insurer a written list of the requirements to abate this determination; and

(3)  Notify the insurer that it is under the supervision of the commissioner and that the commissioner is applying and effectuating the provisions of this chapter. The action by the commissioner shall be subject to review pursuant to the Administrative Procedures Act, chapter 35 of Title 42.

(c)  If placed under administrative supervision, the insurer shall have sixty (60) days, or another period of time as designated by the commissioner, to comply with the requirements of the commissioner subject to the provisions of this chapter.

(d)  If it is determined after notice and hearing that the conditions giving rise to the supervision still exist at the end of the supervision period specified in subsection (c) of this section, the commissioner may extend the period.

(e)  If it is determined that none of the conditions giving rise to the supervision exist, the commissioner shall release the insurer from supervision.

History of Section.
P.L. 1991, ch. 348, § 1; P.L. 2011, ch. 157, § 1; P.L. 2011, ch. 275, § 1.