230 R.I. Code R. 230-RICR-40-10-2.7

Current through December 26, 2024

Section 230-RICR-40-10-2.7 - Financial Responsibility

A. The Division will evaluate the financial responsibility required by R.I. Gen. Laws §§ 19-14-7 and 19-14.10-6 under the following standards. A determination that an individual has not shown financial responsibility may include, but not be limited to:

1. Current outstanding judgments, except judgments solely as a result of medical expenses;

2. Current outstanding tax liens or other government liens and filings;

3. Foreclosures within the past three (3) years;

4. A pattern of seriously delinquent accounts within the past three (3) years. Factors that will be considered in determining whether accounts are seriously delinquent include:

a. A pattern of delinquent child support payments

b. Outstanding collection accounts

c. Accounts that are ninety (90) days or more past due.

B. An applicant who has any of the criteria listed above in his or her background should provide, at the time of initial application, a full description and supporting documentation of the underlying facts and circumstances and the actions taken to rectify the situation. The applicant should identify and explain any of the debts that are related solely to medical debt. The following types of documents should be provided, if applicable:

1. Narrative explaining the circumstances which surround the adverse item reported

2. Satisfaction of judgment

3. Bankruptcy discharge order or dismissal

4. Bankruptcy schedules

5. Satisfaction of tax or other governmental lien

6. Letters or agreements establishing a repayment plan

7. Account statements, receipts, bank statements, cancelled checks or other documentation which establishes the balance due, and the date and the amount of payments

8. Explanations concerning an ongoing settlement negotiation or dispute between the individual and creditor or creditor's assignee

C. After review of these items, the Department will make a determination as to whether a person meets the financial responsibility requirement. To make this determination, the Department may consider the following factors:

1. Whether the individual has provided complete information as requested by the Department

2. The number of delinquent accounts, collection accounts, judgments, liens and charged off items

3. The amount of any delinquent accounts, collection accounts, judgments, liens and charged off items

4. The age of any delinquent accounts, collection accounts, judgments, liens and charged off items

5. Any viable repayment agreements with creditors or creditor's assignees concerning delinquent accounts, collection accounts, judgments, liens and charged off items

6. Good faith negotiation and repayment plans concerning any past due tax liability or failure to make payments pursuant to a repayment plan negotiated with a creditor or governmental tax agency

7. With regard to bankruptcies the Division will consider the circumstances which led to the bankruptcy, the length of time since a discharge in bankruptcy and whether the person has been using credit responsibly since receiving the discharge. For Chapter 13 the Division will examination whether the individual is making the payments required by his or her Chapter 13 bankruptcy plan.

D. If the Division denies an application on the basis that the Applicant or an Officer, Director, Owner, Manager or Control Person of the Applicant is not financially responsible, the Applicant will be notified of the reason for the denial. The Applicant may make written demand upon the department within thirty (30) days for a hearing to determine the reasonableness of the action. The hearing shall be conducted in accordance with the Administrative Procedures Act, R.I. Gen. Laws § 42-35-9.

230 R.I. Code R. 230-RICR-40-10-2.7

Adopted effective 1/1/2019
Amended effective 6/27/2022