§ 27-5-6. Binders and temporary insurance.
Binders or other contracts for temporary insurance may be made, orally or in writing, for a period which shall not exceed thirty (30) days, and shall be deemed to include all of the terms of the standard fire insurance policy and all applicable endorsements, approved by the director of business regulation, as may be designated in the contract of temporary insurance; except that the cancellation clause of the standard fire insurance policy, and the clause specifying the hour of the day at which the insurance shall commence, may be superseded by the express terms of the contract of temporary insurance; provided, that all banks and lending institutions doing business in this state, whether acting under state or federal authority, which include, but are not limited to: (1) a bank, savings bank, or trust company, as defined in this title, its affiliates or subsidiaries, (2) a bank holding company as defined in 12 U.S.C. § 1841, its affiliates or subsidiaries, (3) mortgage companies, and (4), any other individual, corporation, partnership, or association authorized to take deposits and/or to make loans of money under the provisions of title 19, shall be required to accept an insurance binder as evidence of insurance from any duly licensed insurance producer or insurance company; provided, that the binders are in writing and in a form acceptable to the mortgagee and indicating that the mortgagee will be listed as a loss payee on the binder or temporary contract and that the mortgagee will be notified by registered or certified mail in the event the binder or temporary insurance is cancelled. If a binder is utilized, a policy shall, at the request of the mortgagee, be produced within thirty (30) days after the real estate closing has been consummated. Any subsequent holder of the mortgage, as a result of the sale, transfer, conveyance, or assignment of the mortgage, shall have its interest automatically protected and covered in accordance with the notice requirements in § 27-5-3.2.
History of Section.G.L. 1938, ch. 154, § 1; P.L. 1945, ch. 1623, § 1; G.L. 1956, § 27-5-6; P.L. 1985, ch. 295, § 1; P.L. 1989, ch. 340, § 1.
Structure Rhode Island General Laws
Chapter 27-5 - Fire Insurance Policies and Reserves
Section 27-5-1. - Standard fire insurance policy.
Section 27-5-2. - Compliance with standard policy required.
Section 27-5-3. - Form of standard policy.
Section 27-5-3.1. - Exclusion — Nuclear damage.
Section 27-5-3.2. - Property insurance.
Section 27-5-3.3. - Resident agent — Banks.
Section 27-5-3.4. - Cancellation or nonrenewal of standard fire insurance policy.
Section 27-5-3.5. - Earthquake coverage endorsement for property insurance.
Section 27-5-3.6. - Notice concerning flood insurance.
Section 27-5-3.8. - Rhode Island commission on hurricane loss projection methodology.
Section 27-5-3.9. - Vacant property.
Section 27-5-4. - Items shown at head of policy.
Section 27-5-5. - Inclusion of regulations of mutual insurer.
Section 27-5-6. - Binders and temporary insurance.
Section 27-5-6.1. - Notice concerning single interest hazard insurance.
Section 27-5-6.2. - Escrow accounts for insurance premiums.
Section 27-5-7. - Combination standard form.
Section 27-5-8. - Supplemental contract forms.
Section 27-5-9. - Standard form not required for reinsurance.
Section 27-5-9.1. - Simplified comprehensive policies of insurance.
Section 27-5-10. - Penalty for nonconforming policy — Validity.
Section 27-5-11. - Enforcement of standard policy requirements.
Section 27-5-12. - Declination of premium notes by mutual companies — Provision as to liability.
Section 27-5-13. - Mutual membership not acquired by reinsurance.
Section 27-5-14. - Reinsurance by mutual insurers — Agreements with policyholders.
Section 27-5-15. - Power to create guaranty surplus and special reserve funds.
Section 27-5-16. - Resolution to establish surplus and reserve funds — Certification of funds.
Section 27-5-17. - Restrictions on dividends — Payments into surplus and reserve funds.
Section 27-5-18. - Computation of profits.
Section 27-5-19. - Certification that funds equal capital stock — Subsequent additions.
Section 27-5-20. - Investment of guaranty surplus fund — Liability to payment of losses.
Section 27-5-21. - Deposit of special reserve fund.
Section 27-5-22. - Application of special reserve fund to protection of policyholders.
Section 27-5-23. - Annual statement of amounts of funds.
Section 27-5-24. - Maintenance of surplus fund equal to reserve fund.
Section 27-5-25. - Use of special reserve fund to replace capital stock.
Section 27-5-26. - Physical assets for protection of policyholders.
Section 27-5-27. - Making up of impairments of capital.
Section 27-5-28. - Maximum single risk insured.
Section 27-5-29. - Statement on policy as to surplus and reserve funds.
Section 27-5-30. - Funds established under prior law.
Section 27-5-31. - Termination of surplus and reserve fund method — Return of special reserve fund.