Section 230-RICR-20-05-8.6 - Authority to Issue Assigned Risk Automobile Insurance PoliciesA. 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.230 R.I. Code R. 230-RICR-20-05-8.6
Adopted effective 1/1/2019
Amended effective 2/3/2022