§ 27-3-39 - Surplus line broker's bond. - Rhode Island Statutes

SECTION 27-3-39

   § 27-3-39  Surplus line broker's bond.– (a) No license to act as a surplus line broker in this state shall be issueduntil a certificate of the general treasurer is deposited with the insurancecommissioner on a blank furnished by the insurance commissioner, stating thatthe licensee has filed with the general treasurer a bond in the penal sum oftwenty-five thousand dollars ($25,000) executed by the licensee as principaland by a surety company authorized to transact business in this state assurety, and conditioned upon the licensee faithfully complying with all of therequirements of § 27-3-38.

   (b) Any bond required by this section shall be continuouswhile the principal is licensed to act as a surplus line broker in this state;provided, that before the bond may be cancelled, the insurance commissionermust have been notified in writing by the surety of the proposed cancellationat least thirty (30) days prior to the date cancellation is to becomeeffective; and, provided, that in the event of cancellation, any licensecovered by the bond shall be suspended by the insurance commissioner pendingthe substitution of a similar bond for the cancelled bond. The surety shall bereleased from further liability under any bond covering a license revoked,terminated, or expired as to any acts committed after the date that license isrevoked, terminated, or expired. The aggregate liability of the surety for anyand all claims or recoveries that arise under any bond shall in no event exceedthe amount of the penal sum of the bond. The commissioner may promulgatestandards and procedures for collecting under bonds issued pursuant to thissection.

   (c) Authorized surplus line agents or brokers of a licensedfirm may meet the requirements of this section with a bond in the name of thelicensed firm, continuous in form and in the amounts set forth in subsection(a).