(a) With respect to a program of insurance which, if issued on a group basis, would not qualify under § 27-4.8-1, the insurer shall cause to be distributed to prospective insureds a written notice that compensation will or may be paid, if compensation of any kind will or may be paid to: (1) A policyholder or sponsoring or endorsing entity in the case of a group policy; or (2) A sponsoring or endorsing entity in the case of individual, blanket, or franchise policies marketed by means of direct response solicitation. (b) The notice shall be distributed: (1) Whether compensation is direct or indirect; and (2) Whether the compensation is paid to or retained by the policyholder or sponsoring or endorsing entity, or paid to or retained by a third party at the direction of the policyholder or sponsoring or endorsing entity, or an entity affiliated therewith by way of ownership, contract, or employment. (c) The notice required by this section shall be placed on or accompany an application or enrollment form provided to prospective insureds. (d) The following terms shall have the meanings indicated: (1) “Direct response solicitation” means a solicitation through a sponsoring or endorsing entity through the mails, telephone, or other mass communications media; (2) “Sponsoring or endorsing entity” means an organization that has arranged for the offering of a program of insurance in a manner that communicates that eligibility for participation in the program is dependent upon affiliation with the organization or that it encourages participation in the program.
‹ Prev All Rhode Island sections Next ›
Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.