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RHODE ISLAND STATUTES AND CODES

§ 27-16-1.5 - Requirements before defensive pleadings.

SECTION 27-16-1.5

   § 27-16-1.5  Requirements before defensivepleadings. – (a) Before any unauthorized insurer files or causes to be filed in any pleadingin any court action, suit, or proceeding or in any notice, order, pleading, orprocess in an administrative proceeding before the commissioner institutedagainst a person or insurer, by service made as provided in § 27-16-1.4,the insurer shall either:

   (1) Deposit with the clerk of the court in which the action,suit, or proceeding is pending, or with the commissioner of insurance inadministrative proceedings before the commissioner, cash or securities, or filewith the clerk or commissioner a bond with good and sufficient sureties, to beapproved by the clerk or commissioner in an amount to be fixed by the court orcommissioner sufficient to secure the payment of any final judgment which maybe rendered in an action or administrative proceeding; or

   (2) Procure a certificate of authority to transact thebusiness of insurance in this state. In considering the application of aninsurer for a certificate of compliance for the purposes of this subsection,the commissioner need not assert the provisions of § 27-2-17 against aninsurer with respect to its application if he or she determines that thecompany would comply with the requirements for the certificate of compliance.

   (b) The commissioner of insurance, in any administrativeproceeding in which service is made as provided in § 27-16-1.4, may in hisor her discretion, order any postponement as may be necessary to afford thedefendant reasonable opportunity to comply with the provisions of subsection(a) of this section and to defend the action.

   (c) Nothing in subsection (a) of this section shall beconstrued to prevent an unauthorized insurer from filing a motion to quash awrit or to set aside service of it made in the manner provided in §27-16-1.4, on the ground that the unauthorized insurer has not done any of theacts enumerated in § 27-16-1.2.

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