§ 27-2.4-23 - Errors and omissions insurance required of resident insurance producers.
SECTION 27-2.4-23
§ 27-2.4-23 Errors and omissions insurancerequired of resident insurance producers. – (a) All holders of resident insurance producer licenses issued by the insurancedivision of the department of business regulation of the state of Rhode Islandshall, as a condition for obtaining and retaining such license, carry andmaintain errors and omissions insurance covering the business activitiescontemplated, in an amount not less than two hundred fifty thousand dollars($250,000) per claim and five hundred thousand dollars ($500,000) annualaggregate limit. Authorized insurance producers of a licensed firm may meet therequirements of this section with a policy in the name of the licensed firminsuring each licensee employed by, or associated with, the firm.
(b) Licensees shall maintain records and keep copies of allerrors and omissions policies issued under this subsection.
(c) Failure to carry and maintain errors and omissionsinsurance may result in the suspension or revocation of the resident insuranceproducer license.
(d) This section shall not apply to insurance producers thatare employed in that capacity directly by insurance companies.
(e) The department of business regulation may grant a writtenexemption to any producer who shows that he/she is not engaged in the sale,solicitation or negotiation of insurance. Such exemption shall only be validwhile the insurance producer is not engaged in the sale, solicitation ornegotiation of insurance.