§ 27-54-8 - Disclosure of arson conviction.
SECTION 27-54-8
§ 27-54-8 Disclosure of arson conviction.– (a) Every insurance provider doing business within this state shall requireapplicants for property insurance, real or personal, to disclose whether or notthe applicant or applicants have been convicted of any degree of the crime ofarson as described in chapter 4 of title 11 within ten (10) years of theapplication date.
(b) An insurance provider may use the existence of an arsonconviction within ten (10) years as a reason to deny coverage.
(c) Failure to disclose the existence of an arson convictionwhen requested upon an insurance application shall be a misdemeanor punishableby a sentence of not more than one year imprisonment.
(d) The insurance application form shall indicate theexistence of a criminal penalty for failure to disclose a conviction for arson.
(e) For the purpose of this section, "applicant" means anatural person, trust, partnership, association, corporation or other form ofbusiness organization; provided, that if the applicant is a trust, thebeneficiaries of the trust shall be included, and if the applicant is apartnership, association, corporation or other form of business organization,each member, director, shareholder owning more than twenty percent (20%) of thecommon stock issued by the corporation, and the principal officer of thecorporation shall be included.
(f) The provisions of this section do not apply to any policywith respect to highly protected risks. A "highly protected risk" means a fireresistive building that meets the highest standards of fire safety accordingto insurance company underwriting requirements.