2009 Rhode Island Code
Title 27 - Insurance
CHAPTER 27-30 - Consumer Credit Insurance
§ 27-30-9 - Issuance of policies. [Effective February 11, 2010.].

SECTION 27-30-9

   § 27-30-9  Issuance of policies. [Effective until February 11, 2010.]. – (a) All policies of credit life insurance shall be delivered or issued for delivery in this state only by an insurer authorized to do an insurance business in this state, and shall be issued only through holders of licenses or authorizations issued by the commissioner.

   (b) The premiums for individual policies of credit life insurance issued to debtors or the cost to debtors of life insurance coverage under group policies of life insurance issued to creditors, whether or not written by or through any lender or other creditor, its affiliate, associate, or subsidiary or a director, officer, or employee of any of them, shall not be deemed interest or charges nor consideration or any amount for any examination, service, brokerage, commission, compensation for services, incidental expenses, or other thing or otherwise, in addition to or in excess of permitted interest or charges in connection with the loan or credit transaction. Any gain, participation, or advantage to any lender or other creditor, its affiliate, associate, or subsidiary or to a director, officer or employee of any of them arising out of the premium or cost by way of commission, dividend, or otherwise, shall not be deemed interest or charges nor consideration or any amount for any examination, service, brokerage, commission, compensation for services, incidental expenses, or other thing or otherwise, in addition to or in excess of permitted interest or charges in connection with the loan or credit transaction, and shall not be deemed a violation of any law, general or special, civil, or criminal, of this state.

   (c) Notwithstanding any other provision of law, a creditor to whom a group policy of life insurance is issued shall not be deemed to be action as an insurance producer of insurance for the insurance company issuing the policy or for any other person or persons, and no creditor shall, solely by reason of the issuance of group policy, be required to qualify as a licensed insurance producer or otherwise to be licensed or authorized by the commissioner.

   (d) Any creditor doing business in the state of Rhode Island may, in the same office or place of business where the creditor transacts business, obtain life insurance upon the life of a borrower or purchaser or one of them if there are two (2) or more in connection with the making of a loan or sale.