§ 27-17-2 - Power of subscribers to exchange reciprocal and interinsurance contracts. - Rhode Island Statutes

SECTION 27-17-2

   § 27-17-2  Power of subscribers to exchangereciprocal and interinsurance contracts. – (a) Individuals, partnerships, trustees, and all corporations of this state,designated throughout this chapter as "subscribers", are authorized to exchangereciprocal or interinsurance contracts with each other and with individuals,partnerships, trustees, and corporations of other states.

   (b) The right of a corporation to exchange those contracts isdeclared to be incidental to the purpose for which the corporation is organizedand as much granted as the rights and powers expressly conferred. Whenever atrustee acting in a representative capacity insures property held in trust at areciprocal exchange, the trustee may assume the liability and be entitled tothe rights of a subscriber, but in doing this shall not personally orindividually be liable under the power of attorney executed on behalf of thetrust.

   (c) The contracts and the exchange of contracts and thesubscribers, their attorneys in fact, and representatives, shall be regulatedby this chapter and by no other statute of this state relating to insurance,except as otherwise specifically provided in this chapter.