It is enacted by the General Assembly as follows
SECTION 1. Title 27 of the General Laws entitled "Insurance" is hereby amended by adding thereto the following chapter:
{ADD CHAPTER 59 ADD}
{ADD ALIEN INSURANCE COMPANIES ADD}
{ADD 27-59-1. Definition. -- ADD} {ADD As used in this chapter, unless the context requires otherwise:
(a) "Alien insurance company" means any insurance company incorporated or organized under the laws of any country other than the United States.
(b) "Commissioner" means the director of the department of business regulation. ADD}
{ADD 27-59-2. Licensing authority. -- ADD} {ADD Any alien insurance
company, with the approval of the commissioner, may be treated as a domestic insurer of this state in whole or in part, provided, however, that:(a) alien insurance company appoints a resident registered agent to accept service of process and to otherwise act on its behalf in this state. Whenever the registered agent cannot with reasonable diligence be found at the registered office of the alien insurance company, the commissioner shall be an agent of the alien insurance company on which any process, notice, or demand may be served; and
(b) alien insurance company obtains from the commissioner a license authorizing it to do insurance business in the state. ADD}
{ADD 27-59-3. Approval of the commissioner. -- ADD} {ADD The commissioner in determining whether to approve an alien insurance company may consider:
(a) maintenance of an appropriate trust account, surplus account, or other financial mechanisms in this state;
(b) maintenance of all books and records of the United States operations in this state;
(c) maintenance of a separate financial reporting system for its United States operations; and
(d) any other provisions deemed necessary by the insurance commissioner. ADD}
{ADD 27-59-4. Deposits of security. -- Amounts. -- ADD} {ADD (a) Every alien insurance company authorized to transact business in this state shall at all times maintain a deposit with the general treasurer of the state of Rhode Island in cash or in securities in which insurance companies are authorized to invest, a sum equal to the greater of total United States liabilities or one million dollars ($1,000,000). The securities shall be approved, and the amount of the deposit shall be determined, by the commissioner. The commissioner, in the commissioner's discretion, may permit the withdrawal of interest earnings.
(b) In lieu of the deposits provided in this section, an alien insurance company may file with the commissioner a bond of equal amount executed by a licensed United States surety company so conditioned for the protection of Rhode Island creditors and policyholders.
(c) An alien insurance company shall not be granted a certificate of authority to transact business in this state, or renewal of the certificate, until such deposit is made, and the commissioner may revoke the certificate of authority of an alien insurance company which fails to make the deposit in a reasonable period of time. ADD}
{ADD 27-59-5. Laws applicable. -- ADD} {ADD All provisions of this title shall apply to alien insurance companies as if they were domestic insurance companies. Insofar as the provisions of this chapter are inconsistent with the provisions of any other law, general, special, or local provisions of this chapter shall be controlling. ADD}
{ADD 27-59-6. Regulations. -- ADD} {ADD The commissioner shall promulgate such rules and regulations as required to implement this chapter. ADD}
SECTION 2. This act shall take effect upon passage.
