§ 27-1-1 - Site of principal office and records. - Rhode Island Statutes

SECTION 27-1-1

   § 27-1-1  Site of principal office andrecords. – (a) Every insurance company organized after May 3, 1956, under the laws of thisstate shall have its principal office and maintain all of its records, orduplicates of those records, in this state; provided, that the director ofbusiness regulation may, after a public hearing, allow any insurance company,upon application, to locate its principal office and maintain certain originalrecords outside of this state if it is determined that it is not inconsistentwith the public interest of the people of the state of Rhode Island. Indetermining what is not inconsistent with the public interest of the people ofthe state of Rhode Island, the director shall make findings of fact, reduced towriting and filed with the secretary of state, which findings shall include,but are not limited to the following:

   (1) The number of full time employees currently locatedwithin the state, and the number of full time employees anticipated to belocated within the state if the petition is granted;

   (2) That no detriment nor prejudice will inure to any currentor anticipated future policyholders of the company by granting the application;

   (3) That the granting of the application is not inimical tothe ability of policyholders to file claims with and against the company, and,in furtherance of this finding, may require that the company maintain a tollfree number for registering claims, and may require a claims office to belocated within the state, staffed by a person authorized to issue payment onbehalf of the company on approved claims; and

   (4) That a review of the financial records of the company andthe records relied upon by the director in making the determination havesatisfied the director that the company is able to meet its obligations tocurrent policyholders. In the event that there is any risk associated with thegranting the application the director may deny the application or may, infurtherance of the application, require the posting of bonds and/or securitieswith the general treasurer, in an amount to be determined by the director,sufficient to protect the interest of the policyholders within the state.

   (b) The director is authorized to promulgate regulations asprovided for by the Administrative Procedures Act, chapter 35 of title 42, notinconsistent with this section, in furtherance of the authority granted in thissection.