(a)  Surplus lines insurance may be placed by a surplus lines broker if each insurer is authorized to write the type of insurance in its domiciliary jurisdiction;

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Terms Used In Rhode Island General Laws 27-3-40

  • Commissioner: means the insurance commissioner of Rhode Island or his or her designee, deputies or staff, or the commissioner, director or superintendent of insurance in any other state. See Rhode Island General Laws 27-3-38.2
  • Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
  • Insurer: means any person, corporation, association, partnership, reciprocal exchange, interinsurer, Lloyds insurer, insurance exchange syndicate, fraternal benefit society, and any other legal entity engaged in the business of insurance. See Rhode Island General Laws 27-3-38.2
  • Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
  • NAIC: means the National Association of Insurance Commissioners. See Rhode Island General Laws 27-3-38.2
  • Nonadmitted insurer: means an insurer not licensed to do an insurance business in this state. See Rhode Island General Laws 27-3-38.2
  • Surplus lines licensee: means an individual, firm or corporation licensed under § 27-3-38 to place insurance on properties, risks or exposures located or to be performed in this state with nonadmitted insurers eligible to accept such insurance. See Rhode Island General Laws 27-3-38.2
  • United States: include the several states and the territories of the United States. See Rhode Island General Laws 43-3-8

(b)  A surplus lines licensee shall not place coverage with a nonadmitted insurer, unless, at the time of placement, the nonadmitted insurer:

(1)  Has established satisfactory evidence of good repute and financial integrity; and

(2)  Qualifies under one of the following subparagraphs:

(i)  Has capital and surplus or its equivalent under the laws of its domiciliary jurisdiction which equals the greater of:

(A)  The minimum capital and surplus requirements under the law of this state; or

(B)  Fifteen million dollars ($15,000,000); or

(ii)  For an insurer not domiciled in the United States or its territories, the insurer is listed on the quarterly listing of alien insurers maintained by the NAIC international insurers department or its equivalent

(c)  The capital and surplus requirements of paragraph (b)(2)(i) above may be satisfied by an insurer possessing less than the minimum capital and surplus upon an affirmative finding of acceptability by the commissioner. The finding shall be based upon such factors as quality of management, capital and surplus of any parent company, company underwriting profit and investment income trends, market availability and company record and reputation within the industry. In no event shall the commissioner make an affirmative finding of acceptability when the nonadmitted insurer’s capital and surplus is less than four million five hundred thousand dollars ($4,500,000);

(d)  The commissioner is authorized to enter into a multi-state surplus lines agreement to establish additional and alternative nationwide uniform eligibility requirements that shall be applicable to nonadmitted insurers domiciled in another state or territory of the United States.

History of Section.
P.L. 1959, ch. 155, § 1; P.L. 1996, ch. 188, § 3; P.L. 2005, ch. 287, § 1; P.L. 2011, ch. 14, § 2; P.L. 2011, ch. 22, § 2.