§ 27-65-1. Commercial special risks.
(a) Commercial special risks. Notwithstanding any other provisions of this title to the contrary and except as
limited in subsection (b) of this section, insurers shall not be required to file
with, nor to receive approval from, the insurance division of the department of business
regulation for policy forms or rates used in the insurance of commercial special risks
located in this state. Commercial special risks are defined as:
(1) Risks written as commercial lines insurance, defined as insurance issued for purposes
other than for personal, family, or household and that are written on an excess or
umbrella basis;
(2) Those risks, or portions of them, written as commercial lines insurance, defined as
insurance issued for purposes other than for personal, family, or household and that
are not rated according to manuals, rating plans, or schedules including "A� rates;
(3) Risks written as commercial lines insurance that employ or retain the services of
a "risk manager� and that also meet any one of the following criteria:
(i) Net worth over ten million dollars ($10,000,000);
(ii) Net revenue/sales of over five million dollars ($5,000,000);
(iii) More than twenty-five (25) employees per individual company or fifty (50) employees
per holding company in the aggregate;
(iv) Aggregate premiums of over thirty thousand dollars ($30,000), excluding group life,
group health, workers' compensation, and professional liability (including, but not
limited to, errors and omissions and directors and officers liability);
(v) Is a not-for-profit or public entity with an annual budget or assets of at least twenty-five
million dollars ($25,000,000); or
(vi) Is a municipality with a population of over twenty thousand (20,000);
(4) Specifically designated commercial special risks including:
(i) All risks classified as highly protected risks.
"Highly protected risk� means a fire resistive building that meets the highest standards
of fire safety according to insurance company underwriting requirements;
(ii) All commercial insurance aviation risks;
(iii) All credit property insurance risks that are defined as "insurance of personal property
of a commercial debtor against loss, with the creditor as sole beneficiary� or "insurance
of personal property of a commercial debtor, with the creditor as primary beneficiary
and the debtor as beneficiary of proceeds not paid to the creditor.� For the purposes
of this definition, "personal property� means furniture, fixtures, furnishings, appliances,
and equipment designed for use in a business, trade, or profession and not used by
a debtor for personal or household use;
(iv) All boiler and machinery and equipment breakdown risks;
(v) All inland marine risks written as commercial lines insurance defined as insurance
issued for purposes other than for personal, family, or household;
(vi) All fidelity and surety risks;
(vii) All crime and burglary and theft risks; and
(viii) All directors and officers, fiduciary liability, employment practices liability, kidnap
and ransom, and management liability risks.
(b) Notwithstanding subsection (a) of this section, the following lines of business shall
remain subject to all filing and approval requirements contained in this title even
if written for risks that qualify as commercial special risks:
(1) Life insurance;
(2) Annuities;
(3) Accident and health insurance;
(4) Automobile insurance that is mandated by statute;
(5) Workers' compensation and employers' liability insurance; and
(6) Issuance through residual market mechanisms.
(c) Any insurer that provides coverage to a commercial special risk shall disclose to
the insured that forms used and rates charged are exempt from filing and approval
requirements by this section. Records of all such disclosures shall be maintained
by the insurer.
(d) Brokers for exempt commercial policyholders as defined in subsection (a)(3) of this
section shall be exempt from the due diligence requirements of § 27-3-38(c).
(e) Notwithstanding any other provisions of this title, the requirements of § 27-5-2 shall not apply to any policy insuring one or more commercial special risks located
in this state.