(a) Application fee.  Upon application to a court pursuant to § 27-14.5-4, the applicant shall pay a fee to the department in the amount of ten thousand dollars ($10,000).

(1)  In connection with the departments’ participation in the proceedings undertaken pursuant to § 27-14.5-4, the applicant shall be assessed the following expenses:

(i)  One hundred fifty percent (150%) of the total salaries and benefits paid to the personnel of the department of business regulation engaged in the proceedings, including, but not limited to, examiners, actuaries, attorneys, managers, and para-professionals, less any salary reimbursements.

(ii)  The department may retain independent attorneys, appraisers, actuaries, certified public accountants, or other professionals and specialists to assist department personnel in connection with the proceedings, the cost of which shall be borne by the applicant.

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Terms Used In Rhode Island General Laws 27-14.5-5

  • Applicant: means a commercial run-off insurer applying under Rhode Island General Laws 27-14.5-1
  • Assessment deficit: means the amount that the assessment for the previous year under Rhode Island General Laws 27-14.5-1
  • Commissioner: means the director of the department. See Rhode Island General Laws 27-14.5-1
  • Contract: A legal written agreement that becomes binding when signed.
  • Department: means the department of business regulation. See Rhode Island General Laws 27-14.5-1
  • Insurer: has the meaning given in Rhode Island General Laws 27-14.5-1
  • Policy: means a contract of insurance or a contract of reinsurance. See Rhode Island General Laws 27-14.5-1
  • Proportionate share: means , for a particular run-off insurer as of December 31 of the previous year, the ratio of:

    (i)  The gross assets of that run-off insurer; to

    (ii)  The gross assets of all run-off insurers, other than those that were not domiciled in Rhode Island on March 15 of that calendar year. See Rhode Island General Laws 27-14.5-1

  • Redomestication expenditure: means , for any calendar year:

    (i)  The amount that the department's expenditures attributable to the regulation of run-off insurers increases as a result of any run-off insurer redomiciling to Rhode Island on or after March 15 of that year; less

    (ii)  Filing fees, examination costs, and any other fees in relation to insurance regulation in this state paid to this state by run-off insurers that redomiciled to Rhode Island on or after March 15 of that year, but excluding any premium taxes. See Rhode Island General Laws 27-14.5-1

  • Regulatory expenditure: means , for any calendar year:

    (i)  The amount of the department's expenditures attributable to the regulation of run-off insurers domiciled in Rhode Island on March 15 of that year; less

    (ii)  Filing fees, examination costs, and any other fees in relation to insurance regulation in this state paid to this state by run-off insurers domiciled in Rhode Island on March 15 of that year, but excluding any premium taxes. See Rhode Island General Laws 27-14.5-1

  • Run-off insurer: means an insurer that:

    (i)  Is domiciled in Rhode Island;

    (ii)  Has liabilities under policies for property and casualty lines of business;

    (iii)  Has ceased underwriting new business; and

    (iv)  Is only renewing ongoing business to the extent required by law or by contract. See Rhode Island General Laws 27-14.5-1

(b) Ongoing assessment.

(1)  Every March 15, the commissioner shall assess each run-off insurer an amount equal to the greater of: (i) one thousand dollars ($1,000), or (ii) the sum of that run-off insurer‘s proportionate share of estimated regulatory expenditure for that calendar year and that run-off insurer’s assessment deficit, less its assessment surplus.

(2)  The calculation of the assessment surplus or deficit shall reflect the total cost of any examinations, which shall be borne by the companies so examined, and shall include the following expenses:

(i)  One hundred fifty percent (150%) of the total salaries and benefits paid to the examining personnel of the department of business regulation engaged in those examinations, including, but not limited to, examiners, actuaries, attorneys, managers, and para-professionals, less any salary reimbursements;

(ii)  All reasonable technology costs related to the examination process. Technology costs shall include the actual cost of software and hardware utilized in the examination process and the cost of training examination personnel in the proper use of the software or hardware;

(iii)  All necessary and reasonable education and training costs incurred by the state to maintain the proficiency and competence of the examining personnel. All such costs shall be incurred in accordance with appropriate state of Rhode Island regulations, guidelines and procedures.

(3)  Each run-off insurer shall pay the assessment to the department on or before the following fifteenth (15th) day of April.

(4)  An insurer that redomiciles to Rhode Island after March 15 of any year and that qualifies as a run-off insurer upon redomestication shall pay an assessment equal to the commissioner’s estimate of redomestication expenditure attributable to that run-off insurer.

(5)  All revenues collected pursuant to this section shall be deposited as general revenues. That assessment shall be in addition to any taxes and fees otherwise payable to the state.

(c) Pools.  Except with respect to policy renewals required by law or contract, no run-off insurer shall be subject to any assessment or assignment in connection with any residual market, fair plan, or assigned-risk plan mechanisms in this state.

(d) Scope.  This section shall only apply to run-off insurers that cease underwriting new business after January 1, 2002, or that were not domiciled in Rhode Island on January 1, 2002.

History of Section.
P.L. 2002, ch. 381, § 1; P.L. 2011, ch. 167, § 1; P.L. 2011, ch. 294, § 1.