(a)(1)  If the director believes that the controlling producer or any other person has not materially complied with this chapter, or any regulation or order promulgated pursuant to this chapter, after notice and opportunity to be heard, the director may order the controlling producer to cease placing business with the controlled insurer; and

(2)  If it was found that because of the material noncompliance that the controlled insurer or any policyholder of the insurer has suffered any loss or damage, the director may maintain a civil action or intervene in an action brought by or on behalf of the insurer or policyholder for recovery of compensatory damages for the benefit of the insurer or policyholder or other appropriate relief.

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Terms Used In Rhode Island General Laws 27-48-6

  • controlled: has the meaning ascribed in § 27-35-1. See Rhode Island General Laws 27-48-2
  • Controlled insurer: means a licensed insurer that is controlled, directly or indirectly, by a producer. See Rhode Island General Laws 27-48-2
  • Controlling producer: means a producer who, directly or indirectly, controls an insurer. See Rhode Island General Laws 27-48-2
  • Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
  • Director: means the director of the department of business regulation, or the director's designee. See Rhode Island General Laws 27-48-2
  • insurer: means any person, firm, association, or corporation duly licensed to transact a property or casualty insurance business in this state. See Rhode Island General Laws 27-48-2
  • person: may be construed to extend to and include co-partnerships and bodies corporate and politic. See Rhode Island General Laws 43-3-6
  • Producer: means an insurance broker or brokers or any other person, firm, association, or corporation, when, for any compensation, commission, or other thing of value, that person, firm, association, or corporation acts or aids in any manner in soliciting, negotiating, or procuring the making of any insurance contract on behalf of an insured other than the person, firm, association, or corporation. See Rhode Island General Laws 27-48-2

(b)  If an order for liquidation or rehabilitation of the controlled insurer has been entered pursuant to chapter 14.3 of this title, and the receiver appointed under that order believes that the controlling producer or any other person has not materially complied with this chapter, or any regulation or order promulgated pursuant to this chapter, and the insurer suffered any loss or damage from the noncompliance, the receiver may maintain a civil action for recovery of damages or other appropriate sanctions for the benefit of the insurer.

(c)  Nothing contained in this section shall affect the right of the director to impose any other penalties provided for in the insurance law.

(d)  Nothing contained in this section is intended to or shall in any manner alter or affect the rights of policyholders, claimants, creditors, or other third parties.

History of Section.
P.L. 1992, ch. 445, § 9.