§ 27-3-40 - Limitations on placing insurance with approved surplus lines insurers. - Rhode Island Statutes

SECTION 27-3-40

   § 27-3-40  Limitations on placing insurancewith approved surplus lines insurers. – No person licensed to act as a surplus line broker in the state shall place anyinsurance with an approved surplus lines insurer unless that insurer hasfurnished the commissioner with a certified copy of its current annualstatement or documentary evidence that it has investments in the amount of atleast two hundred fifty thousand dollars ($250,000) market value of bonds ofthe United States, or of any state, county, or municipality of the UnitedStates, and in the event of an alien insurer, a trust fund must be establishedand maintained in the United States in the amount of not less than five milliondollars ($5,000,000), for the protection of all of its policyholders in theUnited States; and met any other requirements as determined by the insurancecommissioner to be placed on Rhode Island's list of approved surplus linesinsurers. If at any time the commissioner determines, in his or her judgment,that an approved surplus lines insurer is not in a safe or solvent financialcondition, or has refused to pay just claims, the commissioner shall directthat no insurance shall be placed with that insurer; upon the commissioner'swritten notice to that effect mailed to licensees under this chapter, noinsurance shall be placed with that insurer.