§ 27-46-12 - Duty of agents or brokers or insurance producers to obtain license. - Rhode Island Statutes

SECTION 27-46-12

   § 27-46-12  Duty of agents or brokers orinsurance producers to obtain license. – (a) Risk retention groups. No person, firm, association, or corporationshall act or aid in any manner in soliciting, negotiating, or procuringliability insurance in this state from a risk retention group unless thatperson, firm, association, or corporation is licensed as an insurance agent orbroker or producer in accordance with applicable provisions of law.

   (b) Purchasing groups. (1)  No person, firm,association, or corporation shall act or aid in any manner in soliciting,negotiating, or procuring liability insurance in this state for a purchasinggroup from an authorized insurer or a risk retention group chartered in a stateunless that person, firm, association, or corporation is licensed as aninsurance agent or broker or producer in accordance with applicable provisionsof law;

   (2) No person, firm, association, or corporation shall act oraid in any manner in soliciting, negotiating, or procuring liability insurancecoverage in this state for any member of a purchasing group under a purchasinggroup's policy unless that person, firm, association, or corporation islicensed as an insurance agent or broker or producer in accordance withapplicable provisions of law;

   (3) No person, firm, association, or corporation shall act oraid in any manner in soliciting, negotiating, or procuring liability insurancefrom an insurer not authorized to do business in this state on behalf of apurchasing group located in this state unless that person, firm, association,or corporation is licensed as a surplus lines agent or excess line broker inaccordance with applicable provisions of law.

   (c) Residency. For the purposes of acting as an agentor broker or insurance producer for a risk retention group or purchasing grouppursuant to subsections (a) and (b) of this section, the requirement ofresidence in this state shall not apply.

   (d) Notice requirements. Every person, firm,association, or corporation licensed pursuant to the provisions of law relatingto agents or brokers or insurance producers shall inform each prospectiveinsured on business placed with risk retention groups or written through apurchasing group of the provisions of the notice required by § 27-46-4(7)in the case of a risk retention group and § 27-46-9(c) in the case of apurchasing group.