§ 27-14.5-1. Definitions. [Effective until January 1, 2026.]
As used in this chapter:
(1) "Applicantâ€� means a commercial run-off insurer applying under § 27-14.5-4.
(2) "Assessment deficit� means the amount that the assessment for the previous year under
§ 27-14.5-5 is less than, and "assessment surplusâ€� is the amount that the assessment for the
previous year exceeds:
(i) The run-off insurer's proportionate share of regulatory expenditure for the previous
year, if the run-off insurer was domiciled in Rhode Island on March 15 of the previous
year; or
(ii) The redomestication expenditure for the previous year attributable to the run-off
insurer, if the run-off insurer was not domiciled in Rhode Island on March 15 of the
previous year.
(3) "Assumption policyholder� means a policyholder whose policy is reinsured under an
assumption reinsurance agreement between the applicant and a reinsurer.
(4) "Assumption reinsurance agreementâ€� has the meaning given in § 27-53.1-3, subject to the following:
(i) The agreement may be conditioned upon the court's entry of an implementation order.
(ii) If any policy subject to the agreement is protected through a guarantee association,
then the assuming insurer must have been and be licensed, and must have been and be
a member of the guarantee association, in all states known to the applicant in which
either: (A) Any property covered under the policy has a permanent situs; or (B) The
policyholder resided while the policy was in force.
(5) "Class of creditors� means:
(i) All voting policyholders, including those without known claims;
(ii) Voting creditors, other than policyholders; or
(iii) Any separate class of creditors as the court may in its discretion determine should
approve the commutation plan.
(6) "Commercial run-off insurer� means:
(i) A run-off insurer domiciled in Rhode Island, or the protected cell of the insurer,
whose business, excluding all business subject to an assumption reinsurance agreement,
includes only the reinsuring of any line(s) of business other than life and/or the
insuring of any line(s) of business other than life, workers' compensation, and personal
lines insurance; or
(ii) A Rhode Island domestic insurance company, or the protected cell of that insurer,
meeting the requirements of subsection (6)(i) whose liabilities consist of commercial
liabilities transferred to said company with the approval of the commissioner and
pursuant to the regulations issued by the department under this chapter. The amount
of the commercial liabilities transferred must be less than or equal to the amount
of assets transferred to the newly formed or re-activated company.
(7) "Commissioner� means the director of the department.
(8) "Commutation plan� means a plan for extinguishing the outstanding liabilities of a
commercial run-off insurer.
(9) "Creditor� means:
(i) Any person who has a claim against the applicant; or
(ii) A policyholder other than an assumption policyholder.
(10) "Department� means the department of business regulation.
(11) "Guarantee association� means a guarantee association or foreign guarantee association,
as those terms are defined in § 27-14.3-3(10), that is potentially obligated with respect to the applicant's policies.
(12) "Implementation orderâ€� means an order under § 27-14.5-4(c).
(13) "Insurerâ€� has the meaning given in § 27-14.3-3.
(14) "Person� means an individual, corporation, partnership, association, joint stock company,
trust, unincorporated organization, or any similar entity or any combination of the
foregoing acting in concert.
(15) "Personal lines insurance� means insurance issued for personal, family, or household
purposes.
(16) "Policy� means a contract of insurance or a contract of reinsurance.
(17) "Policyholder� means an insured or a reinsured of the insurer.
(18) "Proportionate share� means, for a particular run-off insurer as of December 31 of
the previous year, the ratio of:
(i) The gross assets of that run-off insurer; to
(ii) The gross assets of all run-off insurers, other than those that were not domiciled
in Rhode Island on March 15 of that calendar year.
(19) "Redomestication expenditure� means, for any calendar year:
(i) The amount that the department's expenditures attributable to the regulation of run-off
insurers increases as a result of any run-off insurer redomiciling to Rhode Island
on or after March 15 of that year; less
(ii) Filing fees, examination costs, and any other fees in relation to insurance regulation
in this state paid to this state by run-off insurers that redomiciled to Rhode Island
on or after March 15 of that year, but excluding any premium taxes.
(20) "Regulatory expenditure� means, for any calendar year:
(i) The amount of the department's expenditures attributable to the regulation of run-off
insurers domiciled in Rhode Island on March 15 of that year; less
(ii) Filing fees, examination costs, and any other fees in relation to insurance regulation
in this state paid to this state by run-off insurers domiciled in Rhode Island on
March 15 of that year, but excluding any premium taxes.
(21) "Run-off insurer� means an insurer that:
(i) Is domiciled in Rhode Island;
(ii) Has liabilities under policies for property and casualty lines of business;
(iii) Has ceased underwriting new business; and
(iv) Is only renewing ongoing business to the extent required by law or by contract.
(22) "Voluntary restructuring� means the act of reorganizing the legal ownership, operational,
governance, or other structures of a solvent insurer, for the purpose of enhancing
organization and maximizing efficiencies, and shall include the transfer of assets
and liabilities to or from an insurer, or the protected cell of an insurer pursuant
to an insurance business transfer plan. A voluntary restructuring under this chapter
may be approved by the commissioner only if, in the commissioner's opinion, it would
have no material adverse impact on the insurer's policyholders, reinsureds, or claimants
of policies subject to the restructuring.