§ 27-2-3 - Reciprocal privileges of nonresident insurance producers.
SECTION 27-2-3
§ 27-2-3 Reciprocal privileges ofnonresident insurance producers. – (a) Any commission received by a Rhode Island licensed resident insuranceproducer may be shared with another licensed resident insurance producer, orwith a licensed nonresident insurance producer; provided, that if thenonresident insurance producer resides in, or is a licensed insurance producerin, a state which requires the retention of a stipulated percentage of thecommission on risks placed in the state by nonresident insurance producers,then and in that event the Rhode Island resident insurance producer shallrequire the same percentage of the commission as would be required if a RhodeIsland insurance producer should place similar insurance in the state of theresidence of the nonresident insurance producer; provided, that if thenonresident insurance producer resides in a state, county, or municipalitywhich by statute or ordinance prohibits the division of commissions oninsurance covering property or risks in the city, county, or state of thenonresident insurance producer, then and in that event, it shall be unlawfulfor the Rhode Island resident insurance producer to pay the nonresidentinsurance producer any share or portion of the commission on insurance onproperty or risks in the state of Rhode Island.
(b) This section shall not apply to bid bonds issued by anyadmitted surety insurer in connection with any public or private contract.
(c) An insurance producer that has been a licensednonresident insurance producer prior to June 30, 1989, for twelve (12) years ormore but whose company is no longer licensed to do business in a reciprocalstate after June 30, 1989, may be licensed in Rhode Island as a specialnonresident insurance producer.