§ 5-46-1 - Posting of surety bonds. - Rhode Island Statutes

SECTION 5-46-1

   § 5-46-1  Posting of surety bonds. –No automobile club, motor club, association, corporation, firm, or personengaged in any trade or business involving contractual reimbursement fortowing, fines, accidental injury or death benefits, or engaged in the businessof an automobile club, motor club, or traveler's club, shall issue anycontract, policy, agreement, or engage in that business until it has placedupon deposit with the state treasurer the sum of one hundred thousand dollars($100,000) in cash, securities, or a surety bond. This section shall not applyto any club, corporation, or person which has placed upon deposit an equivalentamount in cash or surety bond with the state treasurer or insurancecommissioner of any other state, and has placed on record as evidence of thatdeposit, with the secretary of state, a certified copy of the receipt of thatdeposit or bond and any renewal of it.