Rhode Island General Laws 27-34-10. Duties and powers of the commissioner
(a) The commissioner shall:
(1) Notify the association of the existence of an insolvent insurer not later than three (3) days after he or she receives notice of the determination of the insolvency. The association shall be entitled to a copy of a complaint seeking an order of liquidation with a finding of insolvency against a member company at the same time that the complaint is filed with a court of competent jurisdiction; and
(2) Provide the association with a statement of the net direct written premiums of each member insurer upon request of the board of directors.
Terms Used In Rhode Island General Laws 27-34-10
- Association: means the Rhode Island insurance guaranty association created under §?27-34-6. See Rhode Island General Laws 27-34-5
- Commissioner: means the director of the department of business regulation or his or her designee. See Rhode Island General Laws 27-34-5
- Complaint: A written statement by the plaintiff stating the wrongs allegedly committed by the defendant.
- Insolvent insurer: means an insurer licensed to transact insurance in this state either at the time the policy was issued; when the obligation with respect to the covered claim was assumed under an assumed claims transaction; or when the insured event occurred, and against whom a final order of liquidation has been entered after the effective date of this chapter with a finding of insolvency by a court of competent jurisdiction in the insurer's state of domicile. See Rhode Island General Laws 27-34-5
- 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.
- Member insurer: means any person who:
(A) Writes any kind of insurance to which this chapter applies, under §?27-34-3, including the exchange of reciprocal or interinsurance contracts;
(B) Is licensed to transact insurance in this state; and
(C) Is not otherwise excepted from membership by statute or regulation. See Rhode Island General Laws 27-34-5
- Net direct written premiums: means direct gross premiums written in this state on insurance policies to which this chapter applies, including policy and membership fees, less the following amounts: (i) Return premiums; (ii) Premiums on policies not taken; and (iii) Dividends paid or credited to policyholders on that direct business. See Rhode Island General Laws 27-34-5
(b) The commissioner may:
(1) Suspend or revoke, after notice and hearing, the certificate of authority to transact insurance in this state of any member insurer that fails to pay an assessment when due or fails to comply with the plan of operation. As an alternative, the commissioner may levy a fine on a member insurer that fails to pay an assessment when due. The fine shall not exceed five percent (5%) of the unpaid assessment per month, except that a fine not be less than one hundred dollars ($100) per month;
(2) Revoke the designation of any servicing facility if he or she finds claims are being handled unsatisfactorily; and
(3) Examine, audit, or otherwise regulate the association.
(c) A final action or order of the commissioner under this chapter shall be subject to judicial review in a court of competent jurisdiction.
History of Section.
P.L. 1988, ch. 407, § 2; P.L. 1996, ch. 188, § 14; P.L. 2010, ch. 91, § 1; P.L. 2010, ch. 117, § 1.