Terms Used In Rhode Island General Laws > Chapter 27-71 - Market Conduct Surveillance Act

• Appeal: A request made after a trial, asking another court (usually the court of appeals) to decide whether the trial was conducted properly. To make such a request is "to appeal" or "to take an appeal." One who appeals is called the appellant.
• Baseline: Projection of the receipts, outlays, and other budget amounts that would ensue in the future without any change in existing policy. Baseline projections are used to gauge the extent to which proposed legislation, if enacted into law, would alter current spending and revenue levels.
• Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. ^{Source: OCC}
• Commissioner: means the "director of the department of business regulation" or his or her designee. See Rhode Island General Laws 27-71-3
• Common law: The legal system that originated in England and is now in use in the United States. It is based on judicial decisions rather than legislative action.
• Complaint: means a written or documented oral communication to the commissioner primarily expressing a grievance, meaning an expression of dissatisfaction. See Rhode Island General Laws 27-71-3
• Complaint: A written statement by the plaintiff stating the wrongs allegedly committed by the defendant.
• Comprehensive market conduct examination: means a review of one or more lines of business of an insurer domiciled in this state that is not conducted for cause. See Rhode Island General Laws 27-71-3
• Contract: A legal written agreement that becomes binding when signed.
• Desk examination: means a targeted examination that is conducted by an examiner at a location other than the insurer's premises. See Rhode Island General Laws 27-71-3
• Discovery: Lawyers' examination, before trial, of facts and documents in possession of the opponents to help the lawyers prepare for trial.
• 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.
• Fraud: Intentional deception resulting in injury to another.
• in writing: include printing, engraving, lithographing, and photo-lithographing, and all other representations of words in letters of the usual form. See Rhode Island General Laws 43-3-16
• 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.
• Market analysis: means a process whereby market conduct surveillance personnel collect and analyze information from filed schedules, surveys, required reports, and other sources in order to develop a baseline and to identify patterns or practices of insurers licensed to do business in this state that deviate significantly from the norm or that may pose a potential risk to the insurance consumer. See Rhode Island General Laws 27-71-3
• Market conduct action: means any of the full range of activities that the commissioner may initiate to assess the market and practices of individual insurers, beginning with market analysis and extending to targeted examinations. See Rhode Island General Laws 27-71-3
• Market conduct examination: means the examination of the insurance operations of an insurer licensed to do business in this state in order to evaluate compliance with the applicable laws and regulations of this state. See Rhode Island General Laws 27-71-3
• Market conduct surveillance personnel: means those individuals employed or contracted by the commissioner to collect, analyze, review, or act on information on the insurance marketplace that identifies patterns or practices of insurers. See Rhode Island General Laws 27-71-3
• Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
• NAIC market conduct uniform examination procedures: means the set of guidelines developed and adopted by the NAIC designed to be used by market conduct surveillance personnel in conducting an examination. See Rhode Island General Laws 27-71-3
• NAIC market regulation handbook: means a handbook, developed and adopted by the NAIC, or successor product, which:

  (i)  Outlines elements and objectives of market analysis and the process by which states can establish and implement market analysis programs; and

  (ii)  Sets up guidelines that document established practices to be used by market conduct surveillance personnel in developing and executing an examination. See Rhode Island General Laws 27-71-3

• NAIC standard data request: means the set of field names and descriptions developed and adopted by the NAIC for use by market conduct surveillance personnel in an examination. See Rhode Island General Laws 27-71-3
• On-site examination: means a targeted examination conducted at the insurer's home office or the location where the records under review are stored. See Rhode Island General Laws 27-71-3
• 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
• Qualified contract examiner: means a person under contract to the commissioner, who is qualified by education, experience, and, where applicable, professional designations, to perform market conduct actions. See Rhode Island General Laws 27-71-3
• Statute: A law passed by a legislature.
• Subpoena: A command to a witness to appear and give testimony.
• Targeted examination: means a focused exam conducted for cause, based on the results of market analysis indicating the need to review either a specific line of business or specific business practices, including but not limited to, underwriting and rating, marketing and sales, complaint handling operations/management, advertising materials, licensing, policyholder services, nonforfeitures, claims handling, or policy forms and filings. See Rhode Island General Laws 27-71-3
• Third-party model or product: means a model or product provided by an entity separate from and not under direct or indirect corporate control of the insurer using the model or product. See Rhode Island General Laws 27-71-3
• Tort: A civil wrong or breach of a duty to another person, as outlined by law. A very common tort is negligent operation of a motor vehicle that results in property damage and personal injury in an automobile accident.