Terms Used In Rhode Island General Laws > Chapter 27-46 - Risk Retention Act

• Commissioner: means the director of the department of business regulation or the commissioner, director, or superintendent of insurance in any other state. See Rhode Island General Laws 27-46-2
• Completed operations liability: means liability arising out of the installation, maintenance, or repair of any product at a site which is not owned or controlled by:

  (i)  Any person who performs that work; or

  (ii)  Any person who hires an independent contractor to perform that work; but shall include liability for activities which are completed or abandoned before the date of the occurrence giving rise to the liability. See Rhode Island General Laws 27-46-2

• Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
• Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
• Hazardous financial condition: means that, based on its present or reasonably anticipated financial condition, a risk retention group, although not yet financially impaired or insolvent, is unlikely to be able:

  (i)  To meet obligations to policyholders with respect to known claims and reasonably anticipated claims; or

  (ii)  To pay other obligations in the normal course of business. See Rhode Island General Laws 27-46-2

• Injunction: An order of the court prohibiting (or compelling) the performance of a specific act to prevent irreparable damage or injury.
• Insurance: means primary insurance, excess insurance, reinsurance, surplus lines insurance, and any other arrangement for shifting and distributing risk, which is determined to be insurance under the laws of this state. See Rhode Island General Laws 27-46-2
• 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.
• Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). ^{Source: OCC}
• Litigation: A case, controversy, or lawsuit. Participants (plaintiffs and defendants) in lawsuits are called litigants.
• Oversight: Committee review of the activities of a Federal agency or program.
• person: may be construed to extend to and include co-partnerships and bodies corporate and politic. See Rhode Island General Laws 43-3-6
• Personal risk liability: means liability for damages because of injury to any person, damage to property, or other loss or damage resulting from any personal, familial, or household responsibilities or activities, rather than from responsibilities or activities referred to in subsection (6) of this section. See Rhode Island General Laws 27-46-2
• Product liability: means liability for damages because of any personal injury, death, emotional harm, consequential economic damage, or property damage, including damages resulting from the loss of use of property, arising out of the manufacture, design, importation, distribution, packaging, labeling, lease, or sale of a product, but does not include the liability of any person for those damages if the product involved was in the possession of the person when the incident giving rise to the claim occurred. See Rhode Island General Laws 27-46-2
• Purchasing group: means any group which:

  (i)  Has as one of its purposes the purchase of liability insurance on a group basis;

  (ii)  Purchases the insurance only for its group members and only to cover their similar or related liability exposure, as described in subsection (10)(iii);

  (iii)  Is composed of members whose business or activities are similar or related with respect to the liability to which members are exposed by virtue of any related, similar, or common business, trade, product, services, premises, or operations; and

  (iv)  Is domiciled in any state. See Rhode Island General Laws 27-46-2

• Remainder: An interest in property that takes effect in the future at a specified time or after the occurrence of some event, such as the death of a life tenant.
• Risk retention group: means any corporation or other limited liability association:

  (i)  Whose primary activity consists of assuming and spreading all, or any portion, of the liability exposure of its group members;

  (ii)  Which is organized for the primary purpose of conducting the activity described under subsection (11)(i);

  (iii)  Which:

  (A)  Is chartered and licensed as a liability insurance company and authorized to engage in the business of insurance under the laws of any state; or

  (B)  Before January 1, 1985, was chartered or licensed and authorized to engage in the business of insurance under the laws of Bermuda or the Cayman Islands and, before that date, had certified to the insurance commissioner of at least one state that it satisfied the capitalization requirements of that state, except that the group shall be considered to be a risk retention group only if it has been engaged in business continuously since that date and only for the purpose of continuing to provide insurance to cover product liability or completed operations liability, as the terms were defined in the Product Liability Risk Retention Act of 1981 before the date of the enactment of the Liability Risk Retention Act of 1986, Rhode Island General Laws 27-46-2

• Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
• State: means any state of the United States or the District of Columbia. See Rhode Island General Laws 27-46-2
• Statute: A law passed by a legislature.
• United States: include the several states and the territories of the United States. See Rhode Island General Laws 43-3-8