Chapter 092

2006 -- H 7469 SUBSTITUTE A

Enacted 06/13/06

A N A C T

RELATING TO INSURANCE -- ERRORS AND OMISSIONS INSURANCE FOR RESIDENT PRODUCERS

Introduced By: Representative Richard W. Singleton

Date Introduced: February 16, 2006

It is enacted by the General Assembly as follows:

     SECTION 1. Chapter 27-2.4 of the General Laws entitled "Producer Licensing Act" is

hereby amended by adding thereto the following section:

27-2.4-23. Errors and omissions insurance required of resident insurance producers.

– (a) All holders of resident insurance producer licenses issued by the insurance division of the

department of business regulation of the state of Rhode Island shall, as a condition for obtaining

and retaining such license, carry and maintain errors and omissions insurance covering the

business activities contemplated. Authorized insurance producers of a licensed firm may meet the

requirements of this section with a policy in the name of the licensed firm insuring each licensee

employed by, or associated with, the firm.

(b) Licensees shall maintain records and keep copies of all errors and omissions policies

issued under this subsection and shall make this information available to the public and insurance

division upon request.

(c) Failure to carry and maintain errors and omissions insurance may result in the

suspension or revocation of the resident insurance producer license.

(d) This section shall not apply to insurance producers that are employed in that capacity

directly by insurance companies.

     SECTION 2. This act shall take effect on January 1, 2007.

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LC01382/SUB A

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