§ 18-16-8 - Insurance transactions. - Rhode Island Statutes

SECTION 18-16-8

   § 18-16-8  Insurance transactions. –(a) In a statutory short form of power of attorney, the language conferringgeneral authority with respect to insurance transactions shall be construed tomean that the principal authorizes the agent:

   (1) To continue, pay the premium or assessment on, modify,rescind, release or terminate any contract of life, accident, health,disability or liability insurance or any combination of this insurance procuredby or on behalf of the principal prior to the creation of the agency whichinsures either the principal or any other person, without regard to whether theprincipal is or is not a beneficiary under the contract;

   (2) To procure new, different or additional contracts ofinsurance on the life of the principal or protecting the principal with respectto ill-health, disability, accident or liability of any sort; to select theamount, the type of insurance contract and the mode of payment under eachpolicy; to pay the premium or assessment on, modify, rescind, release orterminate any contract procured by the agent, and to designate the beneficiaryof any contract of insurance; provided, no agent shall be the beneficiaryunless the agent is the spouse, child, grandchild, parent, brother or sister ofthe principal; and provided, further, that the agent may not change thebeneficiary of a policy taken out by the principal;

   (3) To apply for and receive any available loan on thesecurity of the contract of insurance, whether for the payment of a premium orfor the procuring of cash; to surrender and thereupon receive the cashsurrender value; to exercise any election as to beneficiary or mode of payment;to change the manner of paying premiums; to change or to convert the type ofinsurance contract, with respect to any contract or life, accident, health,disability or liability insurance as to which the principal has, or claims tohave, any one or more of the powers described in this section;

   (4) To demand, receive or obtain by action, proceeding orotherwise any money, dividend or other thing of value to which the principalis, or may become, or may claim to be, entitled as the proceeds of any contractof insurance or of one or more of the transactions enumerated in this section;to conserve, invest, disburse or utilize anything received for purposesenumerated in this section, and to be reimbursed for any expenditures properlymade by him or her in the execution of the powers conferred on him or her bythe statutory short form power of attorney;

   (5) To apply for and procure any available governmental aidin the guaranteeing or paying of premiums of any contract of insurance on thelife of the principal;

   (6) To sell, assign, hypothecate, borrow upon or pledge theinterest of the principal in any contract of insurance;

   (7) To pay, from the proceeds or otherwise, compromise orcontest, and apply for refunds in connection with, any tax or assessment leviedby a taxing authority with respect to any contract of insurance or the proceedsof it or liability accruing by reason of that tax or assessment;

   (8) To agree and contract, in any manner, and with any personand on any terms, which the agent may select for the accomplishment of any ofthe purposes enumerated in this section, and to perform, rescind, reform,release or modify any such agreement or contract;

   (9) To execute, acknowledge, seal and deliver any consent,demand, request, application, agreement, indemnity, authorization, assignment,pledge, notice, check, receipt, waiver or other instrument which the agentdeems useful for the accomplishment of any of the purposes enumerated in thissection;

   (10) To continue, procure, pay the premium or assessment on,modify, rescind, release, terminate or otherwise deal with any contract ofinsurance, other than those enumerated in subdivisions (1) and (2) of thissubsection, whether fire, marine, burglary, compensation, disability,liability, hurricane, casualty, or other type, or any combination of insurance;to do any act or acts with respect to any such contract or with respect to itsproceeds or enforcement which the agent deems to be desirable or necessary forthe promotion or protection of the interests of the principal;

   (11) To prosecute, defend, submit to arbitration, settle andpropose or accept a compromise with respect to any claim existing in favor of,or against, the principal based on or involving any insurance transaction or tointervene in any action or proceeding relating to any claim;

   (12) To hire, discharge and compensate any attorney,accountant, expert witness or other assistant or assistants when the agentdeems this action to be desirable for the proper execution by him or her of anyof the powers described in this section and for the keeping of needed recordsof these actions; and

   (13) In general, and in addition to all the specific actsenumerated in this section, to do any other act or acts, which the principalcan do through an agent, in connection with procuring, supervising, managing,modifying, enforcing and terminating contracts of insurance in which theprincipal is the insured or is otherwise in any way interested.

   (b) All powers described in this section shall be exercisablewith respect to any contract of insurance in which the principal is in any wayinterested, whether made in the state of Rhode Island or elsewhere.