§ 27-14.4-21 - Agent's responsibilities. - Rhode Island Statutes

SECTION 27-14.4-21

   § 27-14.4-21  Agent's responsibilities.– In the event of the entry of a decree ordering liquidation of an insurer, theresponsibility of the agent to render premiums to the receiver shall be asfollows:

   (1) Any agent upon receiving notice that a policy ofinsurance is being cancelled shall as of the date of policy terminationimmediately remit unearned premiums in the possession of the agent to theinsured who paid them, or with the written approval of the insured, purchasenew coverage for the insured with a different insurer. The agent shall not owe,or remit to the insurer or to the liquidator-receiver any premiums that areunearned as of the date of commencement of the proceedings. The insurancecommissioner shall promulgate rules in accordance with the AdministrativeProcedures Act, chapter 35 of title 42, establishing guidelines for use byagents to calculate unearned premium.

   (2) An agent who places initial insurance coverage, orrenewal coverage, with an insurer admitted to do business in this state or withany insurer conducting business in Rhode Island which is an admitted carrier onthe date of the coverage placement shall be deemed to have fulfilled his or herduty to the insured regarding the financial condition of the insurer and aclaim for monetary damages shall not be brought or maintained against the agentfor breach of duty or for any other cause of action resulting from thefinancial condition of the insurer.

   (3) An agent who places initial insurance coverage, orrenewal coverage, with an insurer that is not admitted to do business in thisstate or with any insurer conducting business in Rhode Island which is anon-admitted carrier on the date of the coverage placement, or if the insureris not rated in the most recent published issue of Best's Key Rating Guide,shall be deemed to have fulfilled his or her duty to the insured regarding thefinancial condition of the insurer and a claim for monetary damages shall notbe brought or maintained against the agent for breach of duty or for any othercause of action resulting from the financial condition of the insurer, but onlyif the insured voluntarily signs this statement:

   (AFFIDAVIT BY INSURED)

   (Name of insured of (street, city or town, state), being dulysworn, deposes and says that on (date), he (she) directed his (her) insuranceagent or broker to obtain insurance against certain risks covering property asdescribed on the reverse side; that his (her) insurance agent or brokerinformed him (her) that (only part of) (no part of) the required insurancecould be obtained from companies admitted to transact business in the state ofRhode Island, to wit: ($     ); and that he (she)informed me that he (she) made a diligent effort to procure the full amount ofinsurance from admitted insurers, but was unable to do so.

   The following companies or groups and officer(s) or agent(s)of these companies or groups are among those which have declined the offeringor accepted a part of it:

   I was further informed that the amount of insurance shownbelow could be obtained from certain insurers not admitted to transact businessin the state of Rhode Island. I therefore directed ]]]]]]]]]]]]] a licensedRhode Island agent (broker) to obtain this insurance from these non-admittedcompanies through the office of ]]]]]]]]]]]]] a licensed surplus line broker.This insurance was only the excess over the amounts procurable from admittedinsurers. ]]]]]]]]]]]]] personally appeared before me ]]]]]]]]]]]] and madeoath that the above affidavit signed by him (her) is true to the best of his(her) knowledge and belief.

   

    (Signature of Insured)

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   (Notary Public)