§ 27-35-3 - Registration of insurers. - Rhode Island Statutes

SECTION 27-35-3

   § 27-35-3  Registration of insurers. –(a) Registration. Every insurer that is authorized to do business inthis state and that is a member of an insurance holding company system shallannually register with the commissioner, except a foreign insurer subject todisclosure requirements and standards adopted by statute or regulation in thejurisdiction of its domicile which are substantially similar to those containedin this section and § 27-35-4(a), (b), (f) and (g). Any insurer that issubject to registration under this section shall register fifteen (15) daysafter it becomes subject to registration, unless the commissioner for goodcause shown extends the time for registration, and then within that extendedtime. The commissioner may require any authorized insurer that is a member of aholding company system which is not subject to registration under this sectionto furnish a copy of the registration statement or other information filed bythe insurance company with the insurance regulatory authority of domiciliaryjurisdiction.

   (b) Information and form required. Every insurersubject to registration shall file a registration statement on a form providedby the commissioner, which shall contain current information about:

   (1) The capital structure, general financial condition,ownership, and management of the insurer and any person controlling the insurer;

   (2) The identity of every member of the insurance holdingcompany system;

   (3) The following agreements in force, relationshipssubsisting, and transactions currently outstanding between the insurer and itsaffiliates:

   (i) Loans, other investments or purchases, and sales andexchanges of securities of the affiliates by the insurer or of the insurer byits affiliates;

   (ii) Purchases, sales, or exchanges of assets;

   (iii) Transactions not in the ordinary course of business;

   (iv) Guarantees or undertakings for the benefit of anaffiliate which result in an actual contingent exposure of the insurer's assetsto liability, other than insurance contracts entered into in the ordinarycourse of the insurer's business;

   (v) All management service contracts and all cost sharingarrangements; and

   (vi) Reinsurance agreements;

   (vii) Dividends and other distributions to shareholder;

   (viii) Consolidated tax allocation agreements; and

   (3.1) Any pledge of the insurer's stock, including stock ofany subsidiary or controlling affiliate, for a loan made to any member of theinsurance holding company system; and

   (4) Other matters concerning transactions between registeredinsurers and any affiliates as may be included from time to time in anyregistration forms adopted or approved by the commissioner.

   (c) Materiality. No information need be disclosed onthe registration statement filed pursuant to subsection (b) of this section ifthat information is not material for the purposes of this section. Unless thecommissioner by rule, regulation, or order provides otherwise, sales,purchases, exchanges, loans, or extensions of credit or investments involvingone-half of one percent (.5%) or less of an insurer's admitted assets as of thethirty-first day of December next preceding shall not be deemed material forpurposes of this section.

   (d) Amendments to registration statements. Eachregistered insurer shall keep current the information required to be disclosedin its registration statement by reporting all material changes or additions onamendment forms provided by the commissioner within fifteen (15) days after theend of the month in which it learns of each change or addition; provided, thatsubject to § 27-35-4(c), each registered insurer shall report alldividends and other distributions to shareholders within two (2) business daysfollowing the declaration of the dividend or other distribution.

   (e) Termination of registration. The commissionershall terminate the registration of any insurer that demonstrates that it nolonger is a member of an insurance holding company system.

   (f) Consolidated filing. The commissioner may requireor allow two (2) or more affiliated insurers subject to registration under thischapter to file a consolidated registration statement or consolidated reportsamending their consolidated registration statement or their individualregistration statements.

   (g) Alternative registration. The commissioner mayallow an insurer that is authorized to do business in this state and which ispart of an insurance holding company system to register on behalf of anyaffiliated insurer that is required to register under subsection (a) and tofile all information and material required to be filed under this section.

   (h) Exemptions. The provisions of this section shallnot apply to any insurer, information, or transaction if and to the extent thatthe commissioner by rule, regulation, or order shall exempt from the provisionsof this section.

   (i) Disclaimer. Any person may file with commissionera disclaimer of affiliation with any authorized insurer or the disclaimer maybe filed by the insurer or any member of an insurance holding company system.The disclaimer shall fully disclose all material relationships and basis foraffiliation between the person and the insurer as well as the basis fordisclaiming the affiliation. After a disclaimer has been filed, the insurershall be relieved of any duty to register or report under this section that mayarise out of the insurer's relationship with the person unless and until thecommissioner disallows the disclaimer. The commissioner shall disallow thedisclaimer only after furnishing all parties in interest with notice andopportunity to be heard and after making specific findings of fact to supportthe disallowance.

   (j) Violations. The failure to file a registrationstatement or any amendment to it required by this section within the timespecified for the filing shall be a violation of this section.

   (k) Summary of registration statement. Allregistration statements shall contain a summary outlining all items in thecurrent registration statement representing changes from the prior registrationstatement.

   (l) Information of insurers. Any person within aninsurance holding company system subject to registration shall be required toprovide complete and accurate information to an insurer, where the informationis reasonably necessary to enable the insurer to comply with the provisions ofthis chapter.