The Rhode Island insurance commissioner is required to participate in a multistate surplus lines compact or agreement so that gross premiums taxes applicable to properties, risks or exposures located or to be performed outside of Rhode Island may be collected and disbursed to reciprocal states. However, to the extent that other states where portions of the properties, risks or exposures reside have failed to enter into the compact or reciprocal allocation procedure with Rhode Island, then Rhode Island will retain the collected taxes.
The surplus lines insurance multistate compliance compact is adopted. Its purpose is to implement provisions of the Non-Admitted and Reinsurance Reform Act and to protect the premium tax revenues of the compacting states through facilitating the payment and collection of premium tax on nonadmitted insurance. The compact provides definitions, establishes the commission and its powers, sets forth the commission’s organization, and provides for rule-making functions, as well as other administrative matters. The compact is allowed to collect a fee payable by the insured directly or through the surplus lines licensee on each transaction processed through the compact clearinghouse to cover the cost of operations.
Ch. 14 (H.B. 5953), Ch. 20 (H.B. 5110), Ch. 22 (S.B. 758), and Ch. 29 (S.B. 88), Laws 2011, effective May 27, 2011