§ 27-14.5-1 - Definitions. - Rhode Island Statutes

SECTION 27-14.5-1

   § 27-14.5-1  Definitions. – As used in this chapter:

   (1) "Applicant" means a commercial run-off insurer applyingunder § 27-14.5-4.

   (2) "Assessment deficit" means the amount that the assessmentfor the previous year under § 27-14.5-5 is less than, and "assessmentsurplus" is the amount that the assessment for the previous year exceeds:

   (i) The run-off insurer's proportionate share of regulatoryexpenditure for the previous year, if the run-off insurer was domiciled inRhode Island on March 15 of the previous year; or

   (ii) The redomestication expenditure for the previous yearattributable to the run-off insurer, if the run-off insurer was not domiciledin Rhode Island on March 15 of the previous year.

   (3) "Assumption policyholder" means a policyholder whosepolicy is reinsured under an assumption reinsurance agreement between theapplicant and a reinsurer.

   (4) "Assumption reinsurance agreement" has the meaning givenin § 27-53.1-3(b), subject to the following:

   (i) The agreement may be conditioned upon the court's entryof an implementation order.

   (ii) If any policy subject to the agreement is protectedthrough a guarantee association, then the assuming insurer must have been andbe licensed, and must have been and be a member of the guarantee association,in all states known to the applicant in which either: (A) any property coveredunder the policy has a permanent situs; or (B) the policyholder resided whilethe policy was in force.

   (5) "Class of creditors" means:

   (i) All voting policyholders, including those without knownclaims;

   (ii) Voting creditors, other than policyholders; or

   (iii) Any separate class of creditors as the court may in itsdiscretion determine should approve the commutation plan.

   (6) "Commercial run-off insurer" means:

   (i) A run-off insurer domiciled in Rhode Island whosebusiness, excluding all business subject to an assumption reinsuranceagreement, includes only the reinsuring of any line(s) of business other thanlife and/or the insuring of any line(s) of business other than life, workers'compensation, and personal lines insurance; or

   (ii) A Rhode Island domestic insurance company meeting therequirements of subsection (i) hereof and formed or re-activated for the solepurpose of entering into a voluntary restructuring under this chapter and whoseliabilities consist of commercial liabilities transferred to said company withthe approval of the commissioners and pursuant to the regulations issued by thedepartment under this chapter. The amount of the commercial liabilitiestransferred must be less than or equal to the amount of assets transferred tothe newly formed or re-activated company.

   (7) "Commissioner" means the director of the department.

   (8) "Commutation plan" means a plan for extinguishing theoutstanding liabilities of a commercial run-off insurer.

   (9) "Creditor" means:

   (i) Any person that has a claim against the applicant; or

   (ii) A policyholder other than an assumption policyholder.

   (10) "Department" means the department of business regulation.

   (11) "Guarantee association" means a guarantee association orforeign guarantee association, as those terms are defined in §27-14.3-3(10), that is potentially obligated with respect to the applicant'spolicies.

   (12) "Implementation order" means an order under §27-14.5-4(c).

   (13) "Insurer" has the meaning given in § 27-14.3-3(12).

   (14) "Person" means an individual, corporation, partnership,association, joint stock company, trust, unincorporated organization, or anysimilar entity or any combination of the foregoing acting in concert.

   (15) "Personal lines insurance" means insurance issued forpersonal, family, or household purposes.

   (16) "Policy" means a contract of insurance or a contract ofreinsurance.

   (17) "Policyholder" means an insured or a reinsured of theinsurer.

   (18) "Proportionate share" means, for a particular run-offinsurer as of December 31 of the previous year, the ratio of:

   (i) The gross assets of that run-off insurer; to

   (ii) The gross assets of all run-off insurers, other thanthose that were not domiciled in Rhode Island on March 15 of that calendar year.

   (19) "Redomestication expenditure" means, for any calendaryear:

   (i) The amount that the department's expendituresattributable to the regulation of run-off insurers increases as a result of anyrun-off insurer redomiciling to Rhode Island on or after March 15 of that year;less

   (ii) Filing fees, examination costs, and any other fees inrelation to insurance regulation in this state paid to this state by run-offinsurers that redomiciled to Rhode Island on or after March 15 of that year,but excluding any premium taxes.

   (20) "Regulatory expenditure" means, for any calendar year:

   (i) The amount of the department's expenditures attributableto the regulation of run-off insurers domiciled in Rhode Island on March 15 ofthat year; less

   (ii) Filing fees, examination costs, and any other fees inrelation to insurance regulation in this state paid to this state by run-offinsurers domiciled in Rhode Island on March 15 of that year, but excluding anypremium taxes.

   (21) "Run-off insurer" means an insurer that:

   (i) Is domiciled in Rhode Island;

   (ii) Has liabilities under policies for property and casualtylines of business;

   (iii) Has ceased underwriting new business; and

   (iv) Is only renewing ongoing business to the extent requiredby law or by contract.