§ 31-47-7 — § 31-47-7. Self-insurers.

§ 31-47-7. Self-insurers.

The director of the department of business regulation, in his or her discretion, may upon the application of a person having registered in his or her name in this state more than twenty-five (25) motor vehicles, issue a certificate of self insurance when he or she is reasonably satisfied that the person is possessed, and will continue to be possessed, of financial ability to respond to judgments obtained against the person arising out of the ownership, maintenance, use, or operation of the person's motor vehicles. Entities applying to, or previously authorized to, permissibly self-insure are subject to the jurisdiction of the department of business regulation. Upon due notice and hearing, the director of the department of business regulation may, in his or her discretion and upon reasonable grounds, cancel a certificate of self insurance. The department of business regulation is authorized to promulgate and enforce rules and regulations that may be necessary to carry out the provisions of this section, including, but not limited to:

(1) Obtaining and reviewing financial statements and related information necessary to ascertain the applicant's ability to self-insure,

(2) Apportioning the cost of review to the applicant in a manner similar to that utilized to charge insurance companies for review and analysis of their financial statements, and

(3) Imposing and enforcing upon entities authorized to permissibly self-insure any and all claims handling and settlement practices required of insurers in the settlement of claims.

Legislative History

P.L. 1991, ch. 167, § 1; P.L. 2014, ch. 29, § 3; P.L. 2014, ch. 36, § 3.