§ 27-52-3 - Licensure. - Rhode Island Statutes

SECTION 27-52-3

   § 27-52-3  Licensure. – (a) No person, firm, association, or corporation shall act as an RB in thisstate if the RB maintains an office either directly or as a member or employeeof a firm or association, or an officer, director, or employee of a corporation:

   (1) In this state, unless the RB is a licensed producer inthis state; or

   (2) In another state, unless the RB is a licensed producer inthis state or another state having a law substantially similar to this law orthe RB is licensed in this state as a nonresident reinsurance intermediary.

   (b) No person, firm, association, or corporation shall act asan RM:

   (1) For a reinsurer domiciled in this state, unless the RM isa licensed producer in this state;

   (2) In this state, if the RM maintains an office eitherdirectly or as a member or employee of a firm or association, or an office,director, or employee of a corporation in this state, unless the RM is alicensed producer in this state;

   (3) In another state for a nondomestic insurer, unless the RMis a licensed producer in this state or another state having a lawsubstantially similar to this law or the person is licensed in this state as anonresident reinsurance intermediary.

   (c) The commissioner may require a RM subject to subsection(b) of this section to:

   (1) File a bond in an amount from an insurer acceptable tothe commissioner for the protection of the reinsurer; and

   (2) Maintain an errors and omissions policy in an amountacceptable to the commissioner.

   (d) The commissioner may issue a reinsurance intermediarylicense to any person, firm, association, or corporation who has complied withthe requirements of this chapter. Any license issued to a firm or associationwill authorize all the members of the firm or association and any designatedemployees to act as reinsurance intermediaries under the license, and all thesepersons shall be named in the application and any supplements to theapplication. Any license issued to a corporation shall authorize all of theofficers, and any designated employees and directors of the corporation to actas reinsurance intermediaries on behalf of the corporation, and all thesepersons shall be named in the application and any supplements to theapplication;

   (2) If the applicant for a reinsurance intermediary licenseis a nonresident, the applicant, as a condition precedent to receiving orholding a license, shall designate the commissioner as agent for service ofprocess in the manner, and with the same legal effect, provided for by thischapter for designation of service of process upon unauthorized insurers, andalso shall furnish the commission with the name and address of a resident ofthis state upon whom notices or orders of the commissioner or process affectingthe nonresident reinsurance intermediary may be served. The licensee shallpromptly notify the commissioner in writing of every change in its designatedagent for service of process, and the change shall not become effective untilacknowledged by the commissioner;

   (3) The commissioner shall promulgate rules and regulationsmandating the term of license for each category of license issued pursuant tothis chapter and no license shall remain in force for a period in excess offour (4) years. The fee for initial issuance of the license or for renewal ofthe license shall be one hundred dollars ($100) per annum for each year of theterm of the license.

   (e) The commissioner may refuse to issue a reinsuranceintermediary license if, in his or her judgment, the applicant, any one namedon the application, or any member, principal, officer, or director of theapplicant, is not trustworthy, or that any controlling person of the applicantis not trustworthy to act as a reinsurance intermediary, or that any of theforegoing has given cause for revocation or suspension of the license, or hasfailed to comply with any prerequisite for the issuance of the license. Uponwritten request, the commissioner will furnish a summary of the basis forrefusal to issue a license, which document shall be privileged and not subjectto the Access to Public Records Act, chapter 2 of title 38.

   (f) Licensed attorneys of this state when acting in theirprofessional capacity as attorneys shall be exempt from this section.