Insurers' Obligations under Contractors' Registration Law Notice of Cancellation or Failure to Renew Policies

Department of Business Regulation 1511 Pontiac Avenue Cranston, RI 02920 Insurance Bulletin Number 2004-9 Insurers’ Obligations under Contractors’ Registration Law Notice of Cancellation or Failure to Renew Policies The Department hereby issues this Bulletin to highlight insurers’ obligations under the Rhode Island Contractors’ Registration Law. R.I. Gen. Laws § 5-65-7.1 provides: Notice of cancellation or failure to renew policies. – Upon the cancellation or failure to renew, the insurance company having written a liability policy, as described in § 5-65-7, shall notify the director of the contractors' registration board of the cancellation or failure to renew. The policy continues in effect until ten (10) days after written notice of the cancellation is given to the director of the contractors' registration board of the cancellation or termination of the liability policy by the issuing insurance company or companies in addition to any other notices which may be required by law. Any insurance company that fails to notify the director as required in this section is subject to prosecution for a misdemeanor and upon conviction of that offense may be punished by a fine of not more than two hundred fifty dollars ($250) for each offense. All criminal actions for any violation of this section shall be prosecuted by the attorney general. The attorney general shall prosecute actions to enforce the payment penalties and fines at the request of the director. Based upon the above requirements, it is the duty of the insurer to report coverage information pursuant to R.I. Gen. Laws § 5-65-7.1 to the Executive Director of the Contractor’s Registration Board. For further information on the reporting requirements, please contact the Contractors’ Registration Board at 401-222-1268 or visit the Contractor’s Registration Board at http://www.crb.ri.gov/ Marilyn Shannon McConaghy Director, Department of Business Regulation August 23 2004