§ 27-16-4 - Purpose of process provisions. - Rhode Island Statutes

SECTION 27-16-4

   § 27-16-4  Purpose of process provisions.– (a) The purpose of §§ 27-16-3 – 27-16-14 is to subject certaininsurers to the jurisdiction of the courts of this state in suits by or onbehalf of insured or beneficiaries under insurance contracts.

   (b) The legislature declares that it is a subject of concernthat many residents of this state hold policies of insurance issued ordelivered in this state by insurers while not authorized to do business in thisstate, thus presenting to the residents the often insuperable obstacle ofresorting to distant forums for the purpose of asserting legal rights under thepolicies. In furtherance of the state interest, the legislature provides inthese sections a method of substituted service of process upon the insurers anddeclares that in doing this that it exercises its power to protect itsresidents and to define, for the purpose of §§ 27-16-3 –27-16-14 what constitutes doing business in this state, and also exercisespowers and privileges available to the state by virtue of 15 U.S.C. § 1011et seq., which declares that the business of insurance and every person engagedin that business shall be subject to the laws of the several states.