Introduced By: Senator Blais
Date Introduced : February 5, 1998
It is enacted by the General Assembly as follows:
SECTION 1. Chapter 27-2 of the General Laws entitled "Foreign Insurance Companies" is hereby amended by adding thereto the following section:
(ADD 27-2-6.1. Special deposit for benefit of policyholders. -- ADD} {ADD (a) The insurance commissioner may require any insurance company, association, or society incorporated by or organized under the laws of any other state or government which seeks to make within this state any contract of insurance to make a special deposit as a condition to licensing. The special deposit shall be held in trust and on deposit for the benefit of all Rhode Island policyholders of the company, association or society. The special deposit may be in any amount and form acceptable to the insurance commissioner. The special deposit shall be deposited with the insurance commissioner or with the general treasurer of this state. ADD}
{ADD (b) The special deposit shall be held exclusively for the benefit of the Rhode Island policyholders and claimants of the company, notwithstanding the source of the special deposit, and in any agreement entered pursuant to this section the insurer shall grant to the director an interest in the deposit to secure all present and future obligations of the insurer to the policyholders and claimants of the insurer in the state of Rhode Island. Such interest shall continue until such obligations are fully satisfied or until the deposit is released by the director. ADD}
SECTION 2. This act shall take effect upon passage.
