Rhode Island General Laws 27-4-6.1. Right to examine and return policy

Current as of: 2023 | Check for updates | Other versions

Every individual life insurance policy delivered or issued for delivery in this state after July 1, 1978, and every individual annuity contract delivered in this state after January 1, 1995, shall contain a provision, or in a separate rider attached when delivered, stating in substance that the person to whom the policy or contract is issued shall be permitted to return the policy or contract within a minimum of ten (10) days of its delivery to that person and to have a refund of the premium paid, if after examination of the policy or contract the purchaser is not satisfied with it for any reason. Every individual life insurance policy and every individual annuity contract delivered in this state after January 1, 2008, shall contain a provision, or in a separate rider attached when delivered, stating in substance that the person to whom the policy or contract is issued shall be permitted to return the policy or contract within a minimum of twenty (20) days of its delivery to that person and to have a refund of the premium paid, if after examination of the policy or contract the purchaser is not satisfied with it for any reason. The provision shall be set forth in the policy or contract under an appropriate caption and, if not printed on the face page of the policy or contract, adequate notice of the provision shall be printed or stamped conspicuously on the face page. The policy or contract may be returned to the insurer at its home or branch office or to the insurance producer through whom it was applied for, and then shall be void as from the beginning and as if the policy or contract had not been issued.

History of Section.
P.L. 1977, ch. 206, § 1; P.L. 1994, ch. 404, § 7; P.L. 2007, ch. 134, § 1; P.L. 2007, ch. 210, § 1; P.L. 2008, ch. 240, § 2; P.L. 2008, ch. 310, § 2.

Terms Used In Rhode Island General Laws 27-4-6.1

Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
Contract: A legal written agreement that becomes binding when signed.
person: may be construed to extend to and include co-partnerships and bodies corporate and politic. See Rhode Island General Laws 43-3-6

Previous section

Next section

Chapter 27-4 Contents

As used in this chapter:

(1) “Adjusted RBC report” means an RBC report adjusted by the commissioner in accordance with § 27-4.6-2(e).

(2) “Corrective order” means an order issued by the commissioner specifying corrective actions that the commissioner has determined are required.

(3) “Domestic insurer” means any insurance company domiciled in this state.

(4) “Foreign insurer” means any insurance company licensed to do business in this state under chapter 2 of this title but is not domiciled in this state.

(5) “Life and/or health insurer” means any insurance company licensed under chapters 1 or 2 of this title and: (i) authorized to transact the business of life insurance or annuities as defined in chapter 4 of this title, or (ii) authorized to write policies of accident and sickness as defined in § 27-18-1, or (iii) a licensed property and casualty insurer writing only accident and health insurance.

(6) “NAIC” means the National Association of Insurance Commissioners.

(7) “Negative trend” means, with respect to a life and/or health insurer, negative trend over a period of time, as determined in accordance with the “trend test calculation” included in the RBC instructions.

(8) “Property and casualty insurer” means all other insurance companies licensed under chapters 1 or 2 of this title but shall not include mono-line mortgage guaranty insurers, financial guaranty insurers and title insurers.

(9) “RBC instructions” means the RBC report including risk-based capital instructions adopted by the NAIC, as the RBC instructions may be amended by the NAIC in accordance with the procedures adopted by the NAIC.

(10) “RBC level” means an insurer’s company action level RBC, regulatory action level RBC, authorized control level RBC, or mandatory control level RBC where:

(i) “Company action level RBC” means, with respect to any insurer, the product of two (2.0) and its authorized control level RBC;

(ii) “Regulatory action level RBC” means the product of one and one-half (1.5) and its authorized control level RBC;

(iii) “Authorized control level RBC” means the number determined under the risk-based capital formula in accordance with the RBC instructions;

(iv) “Mandatory control level RBC” means the product of seven-tenths (.70) and the authorized control level RBC.

(11) “RBC plan” means a comprehensive financial plan containing the elements specified in § 27-4.6-3(b). If the commissioner rejects the RBC plan, and it is revised by the insurer, with or without the commissioner’s recommendation, the plan shall be called the “revised RBC plan.”

(12) “RBC report” means the report required in § 27-4.6-2.

(13) “Total adjusted capital” means the sum of:

(i) An insurer’s statutory capital and surplus; and

(ii) Those other items, if any, as the RBC instructions may provide.

History of Section.
P.L. 1996, ch. 187, § 2.

LawServer

Rhode Island General Laws 27-4-6.1. Right to examine and return policy

Terms Used In Rhode Island General Laws 27-4-6.1

Rhode Island General Laws 27-4.6-1. Definitions

Terms Used In Rhode Island General Laws 27-4.6-1