§ 27-52-2 - Definitions. - Rhode Island Statutes

SECTION 27-52-2

   § 27-52-2  Definitions. – As used in this chapter:

   (1) "Actuary" means a person who is a member in good standingof the American Academy of Actuaries;

   (2) "Controlling person" means any person, firm, association,or corporation who directly or indirectly has the power to direct or cause tobe directed, the management, control, or activities of the reinsuranceintermediary;

   (3) "Insurer" means any person, firm, association, orcorporation duly licensed in this state pursuant to the applicable provisionsof the insurance law as an insurer;

   (4) "Licensed producer" means an agent, broker, orreinsurance intermediary licensed pursuant to the applicable provisions of thistitle.

   (5) "Qualified U.S. financial institutions", for the purposesof this chapter, means an institution that:

   (i) Is organized or in the case of a U.S. office of a foreignbanking organization licensed, under the laws of the United States or any stateof the United States;

   (ii) Is regulated, supervised, and examined by U.S. federalor state authorities having regulatory authority over banks and trustcompanies; and

   (iii) Has been determined by either the commissioner, or thesecurities valuation office of the National Association of InsuranceCommissioners, to meet the standards of financial condition and standing thatare considered necessary and appropriate to regulate the quality of financialinstitutions whose letters of credit will be acceptable to the commissioner;

   (6) "Reinsurance intermediary" means a reinsuranceintermediary broker or a reinsurance intermediary manager as these terms aredefined in subdivisions (7) and (8) of this section, but shall not mean anintermediary in an insurance securitization or reinsurance transaction with aprotected cell established by a protected cell company organized under theProtected Cell Companies Act, chapter 64 of this title, as those terms aredefined or utilized in that Act;

   (7) "Reinsurance intermediary broker" (RB) means any person,other than an officer or employee of the ceding insurer, firm, association, orcorporation who solicits, negotiates, or places reinsurance cessions orretrocessions on behalf of a ceding insurer without the authority or power tobind reinsurance on behalf of the insurer;

   (8) "Reinsurance intermediary manager" (RM) means any person,firm, association, or corporation who has authority to bind or manages all orpart of the assumed reinsurance business of a reinsurer, including themanagement of a separate division, department, or underwriting office, and actsas an agent for the reinsurer which is known as a RM, manager, or other similarterm. Notwithstanding this definition, the following persons shall not beconsidered a RM, with respect to the reinsurer, for the purposes of thischapter:

   (i) Any employee of the reinsurer;

   (ii) A U.S. manager of the United States branch of an alienreinsurer;

   (iii) An underwriting manager which, pursuant to contract,manages all the reinsurance operations of the reinsurer, is under commoncontrol with the reinsurer, subject to the Insurance Holding Company SystemsAct, chapter 35 of this title, and whose compensation is not based on thevolume of premiums written;

   (iv) The manager of a group, association, pool, ororganization of insurers which engage in joint underwriting or jointreinsurance and who are subject to examination by the insurance commissioner ofthe state in which the manager's principal business office is located;

   (9) "Reinsurer" means any person, firm, association, orcorporation duly licensed in this state pursuant to the applicable provisionsof this title as an insurer with the authority to assume reinsurance; and

   (10) "To be in violation" means that the reinsuranceintermediary, insurer, or reinsurer for whom the reinsurance intermediary wasacting failed to substantially comply with the provisions of this chapter.