(a)  A purchasing group which intends to do business in this state shall, prior to doing business, furnish notice to the commissioner which shall:

(1)  Identify the state in which the group is domiciled;

(2)  Identify all other states in which the group intends to do business;

(3)  Specify the lines and classifications of liability insurance that the purchasing group intends to purchase;

(4)  Identify the insurance company or companies from which the group intends to purchase its insurance and the domicile of the company;

(5)  Specify the method by which, and the person or persons, if any, through whom insurance will be offered to its members whose risks are resident or located in this state;

(6)  Identify the principal place of business of the group; and

(7)  Provide any other information that may be required by the commissioner to verify that the purchasing group is qualified under § 27-46-2(10).

Terms Used In Rhode Island General Laws 27-46-8

  • Commissioner: means the director of the department of business regulation or the commissioner, director, or superintendent of insurance in any other state;

    (2)  "Completed operations liability" means liability arising out of the installation, maintenance, or repair of any product at a site which is not owned or controlled by:

    (i)  Any person who performs that work; or

    (ii)  Any person who hires an independent contractor to perform that work; but shall include liability for activities which are completed or abandoned before the date of the occurrence giving rise to the liability;

    (3)  "Domicile" for the purposes of determining the state in which a purchasing group is domiciled, means:

    (i)  For a corporation, the state in which the purchasing group is incorporated; and

    (ii)  For an unincorporated entity, the state of its principal place of business;

    (4)  "Hazardous financial condition" means that, based on its present or reasonably anticipated financial condition, a risk retention group, although not yet financially impaired or insolvent, is unlikely to be able:

    (i)  To meet obligations to policyholders with respect to known claims and reasonably anticipated claims; or

    (ii)  To pay other obligations in the normal course of business;

    (5)  "Insurance" means primary insurance, excess insurance, reinsurance, surplus lines insurance, and any other arrangement for shifting and distributing risk, which is determined to be insurance under the laws of this state;

    (6)  "Liability":

    (i)  Means legal liability for damages, including costs of defense, legal costs and fees, and other claims expenses, because of injuries to other persons, damage to their property, or other damage or loss to other persons resulting from or arising out of:

    (A)  Any business whether profit or nonprofit, trade, product, services including professional services, premises, or operations; or

    (B)  Any activity of any state or local government, or any agency or political subdivision of any state or local government; and

    (ii)  Does not include personal risk liability and an employer's liability with respect to its employees other than legal liability under 45 U. See Rhode Island General Laws 27-46-2

  • person: may be construed to extend to and include co-partnerships and bodies corporate and politic. See Rhode Island General Laws 43-3-6
  • State: means any state of the United States or the District of Columbia. See Rhode Island General Laws 27-46-2
  • United States: include the several states and the territories of the United States. See Rhode Island General Laws 43-3-8

(b)  A purchasing group shall, within ten (10) days, notify the commissioner of any changes in any of the items set forth in subsection (a) of this section.

(c)  The purchasing group shall register with and designate the commissioner as its agent solely for the purpose of receiving service of legal documents or process, for which a filing fee shall be determined by the commissioner, except that these requirements shall not apply in the case of a purchasing group which only purchases insurance that was authorized under the federal Products Liability Risk Retention Act of 1981, 15 U.S.C. § 3901 et seq., and:

(1)  Which in any state of the United States:

(i)  Was domiciled before April 1, 1986; and

(ii)  Is domiciled on and after October 27, 1986;

(2)  Which:

(i)  Before October 27, 1986 purchased insurance from an insurance carrier licensed in any state; and

(ii)  Since October 27, 1986 purchased its insurance from an insurance carrier licensed in any state; or

(3)  Which was a purchasing group under the requirements of 15 U.S.C. § 3901 et seq. before October 27, 1986.

(d)  Each purchasing group that is required to give notice pursuant to subsection (a) shall also furnish the information that may be required by the commissioner to:

(1)  Verify that the entity qualifies as a purchasing group;

(2)  Determine where the purchasing group is located; and

(3)  Determine appropriate tax treatment.

History of Section.
P.L. 1991, ch. 348, § 1; P.L. 2002, ch. 292, § 88.