§ 27-14.3-37 - Recovery of premiums owed.
SECTION 27-14.3-37
§ 27-14.3-37 Recovery of premiums owed.– (a) An agent or insurance producer, broker, premium finance company, or anyother person, other than the insured, responsible for the payment of a premiumshall be obligated to pay any collected earned premiums and any unearnedcommissions due the insurer at the time of the declaration of insolvency asshown on the records of the insurer. The agent or insurance producer, broker,solicitor or other person responsible for the payment of a premium shall remitunearned premiums in his or her possession to the insured who paid them, orwith the written approval of the insured, purchase new coverage for the insuredwith a different insurer. Credits or setoffs or both shall not be allowed to anagent or insurance producer, broker or premium finance company for any amountsadvanced to the insurer by the agent or insurance producer, broker, or premiumfinance company on behalf of, but in the absence of a payment by, the insured;
(2) An insured shall be obligated to pay any unpaid earnedpremium due the insurer at the time of the declaration of insolvency, as shownon the records of the insurer.
(b) Upon satisfactory evidence of a violation of thissection, the commissioner may pursue either one or both of the followingcourses of action:
(1) Suspend or revoke or refuse to renew the licenses of theoffending party or parties; and/or
(2) Impose a penalty of not more than one thousand dollars($1,000) for each and every act in violation of this section by the party orparties.
(c) Before the commissioner shall take any action as setforth in subsection (b) of this section, he or she shall give written notice tothe person, company, association, or exchange accused of violating the law,stating specifically the nature of the alleged violation and fixing a time andplace, at least ten (10) days after this, when a hearing on the matter shall beheld. After the hearing, or upon the failure of the accused to appear at thehearing, the commissioner, if he or she shall find a violation, shall imposeany of the penalties under subsection (b) of this section as he or she deemsadvisable.
(d) When the commissioner shall take action in any or all ofthe ways set out in subsection (b) of this section, the party aggrieved mayappeal from the action to the superior court for the county of Providence.