§ 27-2-6 - Certificate of deposit for benefit of policyholders. - Rhode Island Statutes

SECTION 27-2-6

   § 27-2-6  Certificate of deposit forbenefit of policyholders. – No insurance company, association, or society incorporated by or organizedunder the laws of any other state or government shall make within this stateany contract of insurance unless it has deposited securities created by thelaws of the United States, or by or under laws of the state in which thecompany, association, or society is located or in other safe stocks orsecurities, the market value of which at all times shall be at least onehundred thousand dollars ($100,000) which investments are deposited with theinsurance commissioner, auditor, comptroller, or chief financial officer of thestate by whose laws the company is incorporated, or where the association orsociety is located or has its principal office and place of business, and theinsurance commissioner of this state is furnished with the certificate of thecommissioner, auditor, comptroller, or chief financial officer, under his orher hand and official seal, that he or she, as the commissioner, auditor,comptroller, or chief financial officer of the state holds in trust and ondeposit for the benefit of all policyholders of the company, association, orsociety, voluntary or otherwise, the previously mentioned securities. Thecertificate shall embrace the items of this security held, and shall state thathe or she is satisfied that the securities are worth one hundred thousanddollars ($100,000); provided, that no company of any foreign country shall makeany contract of insurance with any person in this state unless the company, ifa stock company, has two million dollars ($2,000,000) paid-in capital stock andfour million dollars ($4,000,000) surplus, or if a mutual company, it has netassets over all liabilities in the amount of not less than six million dollars($6,000,000), and one million dollars ($1,000,000) is invested in stockscreated by the laws of the United States, or under the laws of some state ofthe United States, the market value of which at all times shall be at least onemillion dollars ($1,000,000), and which shall have made a deposit with theinsurance commissioner of this state or with the proper officer of some otherstate of the United States of not less than two million dollars ($2,000,000) insecurities which shall at all times have a market value of at least two milliondollars ($2,000,000), in trust for the benefit of its policyholders in theUnited States, and the general treasurer of this state is furnished with thecertificate of the commissioner, auditor, comptroller, or chief financialofficer, under his or her hand and official seal, if the deposit be made inanother state, that he or she as the commissioner, auditor, comptroller, orchief financial officer of the state holds in trust and on deposit for thebenefit of all policyholders of the company, association, or society, voluntaryor otherwise, in the United States; the previously mentioned securities; thecertificate shall embrace the items of this security held, and shall state thathe or she is satisfied that the securities are worth two million dollars($2,000,000). Nothing contained in this section shall be so construed as toapply to foreign insurance companies licensed prior to June 1, 1978.