§ 27-16-1.2 - Certificate of compliance – Exceptions.
SECTION 27-16-1.2
§ 27-16-1.2 Certificate of compliance– Exceptions. – (a) It shall be unlawful for any insurer to transact insurance business in thisstate as set forth in subsection (b) of this section without a certificate ofcompliance from the commissioner; provided, that this section shall not applyto:
(1) The lawful transaction of surplus lines insurance;
(2) The lawful transaction of reinsurance by insurers;
(3) Transactions in this state involving a policy lawfullysolicited, written, and delivered outside of this state covering only subjectsof insurance not resident, located, or expressly to be performed in this stateat the time of issuance, and which transactions are subsequent to the issuanceof the policy;
(4) Attorneys acting in the ordinary relation of attorney andclient in the adjustment of claims or losses;
(5) Transactions in this state involving group life and groupsickness and accident or blanket sickness and accident insurance or groupannuities where the master policy of the groups was lawfully issued anddelivered in and pursuant to the laws of a state in which the insurer wasauthorized to do an insurance business, to a group organized for purposes otherthan the procurement of insurance, and where the policyholder is domiciled orhas a bona fide situs;
(6) Transactions in this state involving any policy ofinsurance or annuity contract issued prior to May 15, 1973;
(7) Transactions in this state relative to a policy issuedoutside of this state involving insurance on vessels, craft, or hulls, cargoes,marine protection, and indemnity or other risk, including strikes and war riskscommonly insured under ocean or wet marine forms of policy;
(8) Transactions in this state involving contracts ofinsurance issued to one or more industrial insured. An industrial insured isdefined as an insured:
(i) Which procures the insurance of any risk by the use ofthe services of a full-time employee acting as insurance manager or buyer orthe services of a regularly and continuously retained qualified insuranceconsultant;
(ii) Whose aggregate annual premiums on all risks excludingworkers' compensation and group total at least twenty-five thousand dollars($25,000); and
(iii) Which has at least twenty-five (25) full-timeemployees; and
(9) Transactions in this state involving life insurance,health insurance, or annuities provided to educational or religious orcharitable institutions organized and operated without profit to any privateshareholder or individual for the benefit of the institutions and individualsengaged in the service of the institutions;
(ii) This exemption shall be conditional upon the companycomplying with the following requirements:
(A) Payment of an annual registration fee of five hundreddollars ($500);
(B) Filing a copy of any policy or contract form, includingannuities issued to any Rhode Island residents with the commissioner ofinsurance. Each policy and contract form, including annuities, shall contain(on its front and declaration page) in at least twelve (12) point type thefollowing notice:
(B) NOTICE TO RHODE ISLAND RESIDENTS
THIS CONTRACT HAS BEEN PLACED WITH AN INSURER NOT LICENSED TODO BUSINESS IN THE STATE OF RHODE ISLAND BUT ELIGIBLE AS AN UNLICENSEDREGISTERED INSURER PURSUANT TO THE UNAUTHORIZED BUSINESS STATUTE. THE INSURERIS NOT A MEMBER OF THE RHODE ISLAND LIFE AND HEALTH GUARANTY ASSOCIATION.SHOULD THE INSURER BECOME INSOLVENT, THE PROTECTION AND BENEFITS OF THEASSOCIATION ARE NOT AVAILABLE.
(C) Filing a copy of its annual statement, prepared pursuantto the laws of its state of domicile, and any other financial material that maybe requested by the commissioner; and
(D) The company agrees to appoint the commissioner ofinsurance, and his or her successors in office, as its attorney to receiveservice of legal process issued against it in Rhode Island. The appointment isto be irrevocable and to bind the commissioner, and any successors in interest,and to remain in effect as long as there is in force in this state any contractissued by the company or any obligations arising from a contract.
(10) Rental car companies and their employees principallyengaged in the rental of motor vehicles and which offer in connection with andincidental to the rental of motor vehicles various optional insurance coverageduring the term of the rental, which shall be no more than sixty (60) days.
(11) Transactions that are insurance securitization orreinsurance transactions entered into by a protected cell of a protected cellcompany organized under the Protected Cell Companies Act, chapter 64 of thistitle, as those terms are defined or utilized in that chapter.
(b) Any of the following acts in this state effected by mailor otherwise, by or on behalf of an insurer, is deemed to constitute thetransaction of an insurance business in this state. The venue of an actcommitted by mail is at the point where the matter transmitted by mail isdelivered and takes effect. Unless indicated, "insurer," as used in thissection, includes all corporations, associations, partnerships, and individualsengaged as principals in the business of insurance and also includesinterinsurance exchanges and mutual benefit societies:
(1) The making or proposing to make, as an insurer aninsurance contract;
(2) The making of or proposing to make, as guarantor orsurety, any contract of guaranty or suretyship as a vocation and not merelyincidental to any other legitimate business or activity of the guarantor orsurety;
(3) The taking or receiving of any application for insurance;
(4) The receiving or collection of any premium, commission,membership fees, assessments, dues, or other consideration for an insurance orany part of an insurance;
(5) The issuance or delivery of contracts of insurance toresidents of this state or to persons authorized to do business in this state;
(6) Directly or indirectly acting as an agent or insuranceproducer for or representing or aiding on behalf of another any person orinsurer in the solicitation, negotiation, procurement, or effectuation ofinsurance or renewals of insurance or in the dissemination of information as tocoverage or rates, forwarding of applications, delivery of policies orcontracts, inspection of risks, fixing of rates or investigation or adjustmentof claims or losses, or in the transaction of matters subsequent toeffectuation of the contract and arising out of it, or in any other mannerrepresenting or assisting a person or insurer in the transaction of insurancewith respect to subjects of insurance, resident, located, or to be performed inthis state. The provisions of this subsection shall not operate to prohibitfull-time salaried employees of a corporate insured from acting in the capacityof an insurance manager or buyer in placing insurance in behalf of the employer;
(7) The transaction of any kind of insurance businessspecifically recognized as transacting an insurance business within the meaningof the statutes relating to insurance; or
(8) The transacting or proposing to transact any insurancebusiness in substance equivalent to any of these in a manner designed to evadethe provisions of the statutes.
(c) The failure of an insurer transacting insurance businessin this state to obtain a certificate of compliance shall not impair thevalidity of any act or contract of the insurer and shall not prevent theinsurer from defending any action at law or suit in equity in any court of thisstate, but no insurer transacting insurance business in this state without acertificate of authority shall be permitted to maintain an action in any courtof this state to enforce any right, claim, or demand arising out of thetransaction of insurance business until the insurer shall have obtained acertificate of authority.
(d) In the event of the failure of any unauthorized insurerto pay any claim or loss within the provisions of the insurance contract, anyperson who assisted or in any manner aided directly or indirectly in theprocurement of the insurance contract shall be liable to the insured for thefull amount of the claim or loss in the manner provided by the provisions ofthe insurance contract.