Bill > H7859

This bill updates various sections of Rhode Island insurance law by repealing outdated provisions and amending others to reflect current practices, aiming to modernize and streamline insurance regulations. Specifically, it removes sections related to the forfeiture of charters and receivership for domestic insurance companies, as well as provisions concerning foreign insurance companies, including reciprocal privileges for insurance producers and penalties for unlawful business. The bill also amends sections on reciprocal fees and charges for foreign insurance companies, the validity of contracts from non-complying companies, and the revocation or suspension of licenses for foreign companies, shifting penalties to a more general administrative penalty section (§ 42-14-16). Additionally, it modifies penalties for violations by portable electronics insurance vendors, information reporting for fire losses, and penalties for doing business without compliance in reciprocal exchanges. The bill also updates the Uniform Insurers Liquidation Act to reflect the director of business regulation as the domiciliary receiver and makes significant changes to insurance holding company systems, introducing new requirements for financial condition, record-keeping, and affiliate transactions, particularly when an insurer is deemed in a hazardous financial condition. Finally, it repeals a section establishing a commission on hurricane loss projection methodology and updates a section on dividends and distributions within holding company systems.

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