§ 27-14.5-5 - Taxes, fees, assessments, pools, and regulatory and supervision fund. - Rhode Island Statutes

SECTION 27-14.5-5

   § 27-14.5-5  Taxes, fees, assessments,pools, and regulatory and supervision fund. – (a) Application fee. Upon application to a court pursuant to §27-14.5-4, the applicant shall pay a fee to the department in the amount of onehundred and twenty-five thousand dollars ($125,000) or any lesser amount thatthe commissioner shall deem adequate for appropriate and thorough review of theapplication.

   (1) Every March 15, the commissioner shall assess eachrun-off insurer an amount equal to the greater of: (i) one thousand dollars($1,000), or (ii) the sum of that run-off insurer's proportionate share ofestimated regulatory expenditure for that calendar year and that run-offinsurer's assessment deficit, less its assessment surplus.

   (2) The calculation of the assessment surplus or deficitshall reflect the total cost of any examinations, which shall be borne by thecompanies so examined, and shall include the following expenses:

   (i) One hundred fifty percent (150%) of the total salariesand benefits paid to the examining personnel of the department of businessregulation engaged in those examinations, including, but not limited to,examiners, actuaries, attorneys, managers, and para-professionals, less anysalary reimbursements;

   (ii) All reasonable technology costs related to theexamination process. Technology costs shall include the actual cost of softwareand hardware utilized in the examination process and the cost of trainingexamination personnel in the proper use of the software or hardware;

   (iii) All necessary and reasonable education and trainingcosts incurred by the state to maintain the proficiency and competence of theexamining personnel. All such costs shall be incurred in accordance withappropriate state of Rhode Island regulations, guidelines and procedures.

   (3) Each run-off insurer shall pay the assessment to thedepartment on or before the following fifteenth (15th) day of April.

   (4) An insurer that redomiciles to Rhode Island after March15 of any year and that qualifies as a run-off insurer upon redomesticationshall pay an assessment equal to the commissioner's estimate of redomesticationexpenditure attributable to that run-off insurer.

   (5) All revenues collected pursuant to this section shall bedeposited as general revenues. That assessment shall be in addition to anytaxes and fees otherwise payable to the state.

   (c) Pools. Except with respect to policy renewalsrequired by law or contract, no run-off insurer shall be subject to anyassessment or assignment in connection with any residual market, fair plan, orassigned-risk plan mechanisms in this state.

   (d) Scope. This section shall only apply to run-offinsurers that cease underwriting new business after January 1, 2002, or thatwere not domiciled in Rhode Island on January 1, 2002.