Chapter 294
2011 -- S 0509
Enacted 07/12/11
A N A C T
RELATING TO
INSURANCE - VOLUNTARY RESTRUCTURING OF SOLVENT INSURERS
Introduced By: Senators Bates, and Miller
Date Introduced: March 10, 2011
It is enacted by the General
Assembly as follows:
SECTION 1. Section 27-14.5-5 of the General Laws in Chapter
27-14.5 entitled
"Voluntary
Restructuring of Solvent Insurers" is hereby amended to read as follows:
27-14.5-5.
Taxes, fees, assessments, pools, and regulatory and supervision fund.
-- (a)
Application fee. - Upon application to a court pursuant to section
27-14.5-4, the applicant shall
pay a fee to the department in the amount of one
hundred and twenty-five thousand dollars
($125,000) ten
thousand dollars ($10,000) or any lesser amount that the commissioner
shall deem
adequate for appropriate and thorough review of the
application.
(1) In connection
with the departments' participation in the proceedings undertaken
pursuant to section 27-14.5-4, the applicant shall be assessed
the following expenses:
(i)
One hundred fifty percent (150%) of the total salaries and benefits paid to the
personnel of the department of business regulation engaged in
the proceedings, including, but not
limited to, examiners, actuaries, attorneys, managers, and para-professionals, less any salary
reimbursements.
(ii) The department
may retain independent attorneys, appraisers, actuaries, certified
public accountants, or other professionals and specialists to
assist department personnel in
connection with the proceedings, the cost of which shall be
borne by the applicant.
(b) Assessment Ongoing
assessments.
(1) Every March 15, the
commissioner shall assess each run-off insurer an amount equal
to the greater of: (i) one
thousand dollars ($1,000), or (ii) the sum of that run-off insurer's
proportionate share of estimated regulatory expenditure for that
calendar year and that run-off
insurer's assessment deficit, less its assessment surplus.
(2) The calculation of
the assessment surplus or deficit shall reflect the total cost of any
examinations, which shall be borne by the companies so examined,
and shall include the
following expenses:
(i)
One hundred fifty percent (150%) of the total salaries and benefits paid to the
examining personnel of the department of business regulation
engaged in those examinations,
including, but not limited to, examiners, actuaries, attorneys,
managers, and para-professionals,
less any salary reimbursements;
(ii) All reasonable
technology costs related to the examination process. Technology costs
shall include the actual cost of software and hardware
utilized in the examination process and the
cost of training examination personnel in the proper use
of the software or hardware;
(iii) All necessary and
reasonable education and training costs incurred by the state to
maintain the proficiency and competence of the examining
personnel. All such costs shall be
incurred in accordance with appropriate state of
procedures.
(3) Each run-off
insurer shall pay the assessment to the department on or before the
following fifteenth (15th) day of April.
(4) An insurer that redomiciles to
qualifies as a run-off insurer upon redomestication
shall pay an assessment equal to the
commissioner's estimate of redomestication
expenditure attributable to that run-off insurer.
(5) All revenues
collected pursuant to this section shall be deposited as general revenues.
That assessment shall be in addition to any taxes and
fees otherwise payable to the state.
(c) Pools. - Except
with respect to policy renewals required by law or contract, no run-
off insurer shall be subject to any assessment or
assignment in connection with any residual
market, fair plan, or assigned-risk plan mechanisms in this
state.
(d) Scope. - This
section shall only apply to run-off insurers that cease underwriting new
business after January 1, 2002, or that were not domiciled in
SECTION 2. This act shall take effect upon passage.
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LC01237
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