§ 27-2-3. Reciprocal privileges of nonresident insurance producers.
(a) Any commission received by a Rhode Island licensed resident insurance producer may be shared with another licensed resident insurance producer, or with a licensed nonresident insurance producer; provided, that if the nonresident insurance producer resides in, or is a licensed insurance producer in, a state which requires the retention of a stipulated percentage of the commission on risks placed in the state by nonresident insurance producers, then and in that event the Rhode Island resident insurance producer shall require the same percentage of the commission as would be required if a Rhode Island insurance producer should place similar insurance in the state of the residence of the nonresident insurance producer; provided, that if the nonresident insurance producer resides in a state, county, or municipality which by statute or ordinance prohibits the division of commissions on insurance covering property or risks in the city, county, or state of the nonresident insurance producer, then and in that event, it shall be unlawful for the Rhode Island resident insurance producer to pay the nonresident insurance producer any share or portion of the commission on insurance on property or risks in the state of Rhode Island.
(b) This section shall not apply to bid bonds issued by any admitted surety insurer in connection with any public or private contract.
(c) An insurance producer that has been a licensed nonresident insurance producer prior to June 30, 1989, for twelve (12) years or more but whose company is no longer licensed to do business in a reciprocal state after June 30, 1989, may be licensed in Rhode Island as a special nonresident insurance producer.
History of Section.P.L. 1984, ch. 45, § 1; P.L. 1989, ch. 383, § 1; P.L. 1989, ch. 513, § 1; P.L. 1992, ch. 445, § 7.
Structure Rhode Island General Laws
Chapter 27-2 - Foreign Insurance Companies
Section 27-2-1. - Compliance by foreign insurance companies required.
Section 27-2-1.1. - Telephone number — Toll free or collect.
Section 27-2-2. - Applicability.
Section 27-2-3. - Reciprocal privileges of nonresident insurance producers.
Section 27-2-4. - Penalty for unlawful business.
Section 27-2-5. - Minimum capital and surplus requirements — Maximum amount of single risk.
Section 27-2-6. - Certificate of deposit for benefit of policyholders.
Section 27-2-6.1. - Special deposit for benefit of policyholders.
Section 27-2-7. - Charter to be filed.
Section 27-2-8. - Statement as to type of company, investments, and risks.
Section 27-2-9. - Statement as to capital, assets, and investments.
Section 27-2-10. - Filing of accident and health policy forms.
Section 27-2-11. - License required — Expiration date.
Section 27-2-12. - Review of refusal to issue or renew license.
Section 27-2-13. - Commissioner as attorney to receive process.
Section 27-2-14. - Forwarding of process by commissioner.
Section 27-2-15. - Provisions against actions in state courts.
Section 27-2-16. - Filing fees — Certificates of compliance.
Section 27-2-17. - Reciprocal fees and charges.
Section 27-2-18. - Life insurance companies’ offices.
Section 27-2-19. - Inquiries as to financial condition.
Section 27-2-21. - Report and prosecution of violations.
Section 27-2-22. - Companies owned or controlled in whole or in part by foreign state or government.
Section 27-2-23. - Discrimination in rates prohibited.
Section 27-2-24. - Revocation or suspension of license of foreign company.
Section 27-2-25. - Notice of revocation or suspension of license.
Section 27-2-26. - Business prohibited during suspension or revocation.