§ 27-30-9 - Issuance of policies. [Effective until February 11, 2010.]. - Rhode Island Statutes

SECTION 27-30-9

   § 27-30-9  Issuance of policies.[Effective until February 11, 2010.]. – (a) All policies of credit life insurance shall be delivered or issued fordelivery in this state only by an insurer authorized to do an insurancebusiness in this state, and shall be issued only through holders of licenses orauthorizations issued by the commissioner.

   (b) The premiums for individual policies of credit lifeinsurance issued to debtors or the cost to debtors of life insurance coverageunder group policies of life insurance issued to creditors, whether or notwritten by or through any lender or other creditor, its affiliate, associate,or subsidiary or a director, officer, or employee of any of them, shall not bedeemed interest or charges nor consideration or any amount for any examination,service, brokerage, commission, compensation for services, incidental expenses,or other thing or otherwise, in addition to or in excess of permitted interestor charges in connection with the loan or credit transaction. Any gain,participation, or advantage to any lender or other creditor, its affiliate,associate, or subsidiary or to a director, officer or employee of any of themarising out of the premium or cost by way of commission, dividend, orotherwise, shall not be deemed interest or charges nor consideration or anyamount for any examination, service, brokerage, commission, compensation forservices, incidental expenses, or other thing or otherwise, in addition to orin excess of permitted interest or charges in connection with the loan orcredit transaction, and shall not be deemed a violation of any law, general orspecial, civil, or criminal, of this state.

   (c) Notwithstanding any other provision of law, a creditor towhom a group policy of life insurance is issued shall not be deemed to beaction as an insurance producer of insurance for the insurance company issuingthe policy or for any other person or persons, and no creditor shall, solely byreason of the issuance of group policy, be required to qualify as a licensedinsurance producer or otherwise to be licensed or authorized by thecommissioner.

   (d) Any creditor doing business in the state of Rhode Islandmay, in the same office or place of business where the creditor transactsbusiness, obtain life insurance upon the life of a borrower or purchaser or oneof them if there are two (2) or more in connection with the making of a loan orsale.