Current through September 18, 2024
A. The Plan shall be authorized to:
1. Issue insurance policies in the name of
the Plan for risks eligible pursuant to the Plan of Operation;
2. Investigate and adjust all claims under
policies issued, defend all policyholders, pay losses, hold reserves and
perform all such functions as are usual in servicing such policies;
3. Issue assessments to Insurers doing
business in Rhode Island and make referrals to the Department if such
assessments are not paid; and
4.
Otherwise incur expenses consistent with the purposes of the Plan.
B. Obligations of participating
Insurers
1. Each Insurer participating in the
Plan shall share in the operating results of the Plan to the extent of the
Insurers' participation in the Rhode Island automobile insurance market for
that calendar year. The Plan will file quarterly/annual statements with the
Department and the National Association of Insurance Commissioners. Plan
Insurers shall record their share of operating results as a Boards/Bureau
expense.
2. Liability of each
Insurer shall be several, each for itself, and not joint and no insurer shall
be liable for the liability of any other insurers except as may otherwise be
provided in the approved Plan of Operations.
C. Attorney In Fact
1. The Governing Committee shall from time to
time designate in writing one (1) or more persons to act as attorney in fact
for all Insurers to execute policies on behalf of all insurers.
2. No policy shall be affected or invalidated
by any change of the attorney in fact who, at the time such policy was issued,
shall have duly acted pursuant to the powers in him or her then vested.
3. Any policy of insurance issued
pursuant to this Part may be executed on behalf of the Insurers by any attorney
in fact appointed hereunder and each Insurer will be bound thereby to the
extent of its participation in the Plan as determined in accordance with the
Plan of Operation.
D.
All policies shall be for automobile insurance as provided for in accordance
with the approved provisions of the Plan of Operation.
1. All policies shall be issued on forms
approved by the Department.
2. All
policies shall be issued for a term of one (1) year.
E. In issuing these policies the Plan shall
be subject to all statutes and Regulations applicable to insurers issuing
private passenger automobile insurance, including the exemption for the plan in
§
2.4(C) of this Subchapter, Automobile Insurance Cancellation, unless a
contrary provision is specifically provided in this Part or the Department
determines an exemption is in the public interest.
F. In order to accomplish the goals of this
Part, the Plan is required to maintain a Certificate of Authority and file
quarterly and annual financial statements electronically with NAIC. The Plan is
subject to all laws and Regulations applicable to Rhode Island domestic
insurance companies, except for:
1. The Plan
is not a "member insurer" pursuant to R.I. Gen. Laws §
27-34-5(14).
2. The Plan is not an "insurance
company" or "those corporations and other entities subject to this title and
chapter" pursuant to R.I. Gen. Laws §
27-36-2.
3. The Plan is not an "insurance company
doing business in this state" pursuant to R.I. Gen. Laws §
42-14-10.
4. The Plan is not required to maintain the
statutory minimum capital and surplus requirements that apply to other domestic
insurance companies.
5. The Plan
is not required to maintain a minimum risk-based capital requirements that
apply to other domestic and foreign insurance companies.
