230-RICR-20-50-5. LICENSING AND RENEWAL FEES (version Technical Revision, 09/14/2009 to 01/01/2015)

State of Rhode Island and Providence Plantations DEPARTMENT OF BUSINESS REGULATION Insurance Division 1511 Pontiac Avenue, Bldg. 69-2 Cranston, Rhode Island 02920 INSURANCE REGULATION 103 LICENSING AND RENEWAL FEES Table of Contents Section 1 Authority Section 2 Purpose Section 3 Definitions Section 4 Fee Schedules Section 5 Miscellaneous Fees Section 6 Contracted Producers Report Section 7 Collection of Licensing Fees and Data Section 8 Severability Section 9 Effective Date Section 1 Authority This Regulation is promulgated in accordance with R.I. Gen. Laws § 27-2.4-1 et seq., 27-3-38, 27-3.2-1 et seq., 27-10-1 et seq., 27-10.1-1 et seq., 27-20.7-1 et seq., 27- 52-1 et seq., 42-14-17 and 42-35-1 et seq. Section 2 Purpose The purpose of this Regulation is to establish a fee schedule for the initial licensing and renewals of Insurance Producers, Insurance Claims Adjusters, Motor Vehicle Damage Appraisers, Surplus Line Brokers, Third Party Administrators and Reinsurance Intermediaries. The Regulation also provides for the fees for associated services and documents that the Commissioner has determined are reasonable and the requirements and fees for the Contracted Producer Reports filed by insurance companies. Section 3 Definitions As used in this Regulation: (A) "Amendment to a License" shall mean a claim adjuster or an insurance producer application submitted by a licensee to the Department of Business Regulation requesting that a line or lines of authority be added to or deleted from his, her or its license. Reg # 103 Page 1 of 6 (B) “Annual Contracted Producer Report” shall mean the report that must be filed annually by each insurance company detailing licensed insurance producers to which the insurer paid in excess of $100 in the previous calendar year and for which the insurance company must pay $30 per producer pursuant to R.I. Gen. Laws § 27-2.4- 4(b)(3). (C) “Continuing Education Tracking Fee” shall mean a fee that all insurance producers are required to pay pursuant to R.I. Gen. Laws § 27-3.2-9. (D) “Department” shall mean the Department of Business Regulation, Division of Insurance. (E) “Duplicate License” shall mean a replacement of an insurance license requested by an insurance licensee and issued by the Department. (F) “Letter of Certification” shall mean an original document requested by an insurance licensee and issued by the Department which verifies that he, she or it holds a certain type of insurance license in the State of Rhode Island. (G) “Letter of Clearance” shall mean an original document requested by an insurance licensee and issued by the Department canceling his, her or its Rhode Island insurance license. (H) “License” shall mean an insurance license issued by the Rhode Island Department of Business Regulation. (I) “Licensee” shall mean the holder of an insurance license issued by the Rhode Island Department of Business Regulation. (J) “NAIC” shall mean the National Association of Insurance Commissioners. (K) “Reinstatement” shall mean the process by which an insurance producer license, motor vehicle damage appraiser license, claim adjuster license or surplus line broker license is reinstated without prelincensing or examination within one (1) year from the date of expiration. A Licensee who allows his or her License to expire will have until one (1) year from the date of expiration to file a new application for a License without having to take an examination or prelicensing course. A Licensee must still complete and file a reinstatement application and pay all applicable fees. (L) "Resident" means a person who either resides in Rhode Island or maintains an office in Rhode Island where the business of producing insurance is transacted and designates Rhode Island as the residence for purposes of licensure. (M) “Returned Check” shall mean any check submitted by an applicant for a License or submitted by a Licensee to the Department that is returned to the Department due to insufficient funds. Reg # 103 Page 2 of 6 Section 4 Fee Schedules (A) The Department issues two-year licenses. The fees listed below apply to a person obtaining the license during the two-year period even if his or her license will expire in less than two years. The fees for each license type are as follows. (B) The fee schedule for the initial and renewal license for the various types of licenses issued by the Department is as follows: (1) Insurance Producer License Fee (both initial application and renewal). These fees apply to all insurance producers licensed in the major lines of authority (life, accident and health and sickness, property, casualty, variable life and annuity, personal lines – property and casualty); title insurance producers and all limited lines of authority: (a) Residents - $120 Fee is calculated by adding $55 per year fee of R.I. Gen. Laws § 27- 2.4-4 and the $5 per year Continuing Education tracking fee of R.I. Gen. Laws § 27-3.2-9. (b) Nonresidents - $130 Fee is calculated by adding $60 per year fee of R.I. Gen. Laws § 27- 2.4-4, $5 per year retaliatory fee and a $5 per year Continuing Education tracking fee of R.I. Gen. Laws § 27-3.2-9. (2) Insurance Claim Adjusters (a) Initial Application – Resident and Nonresident Claims Adjuster Biennial License Fee: $170 (comprised of $50 application fee and $60annual fee pursuant to R.I. Gen. Laws § 27-10-6) (b) Renewal Application - Residents and Nonresidents - $120 (comprised of $60 annual fee pursuant to R.I. Gen. Laws § 27-10-6) (3) Motor Vehicle Damage Appraisers (a) Initial Application – Resident and Nonresident Motor Vehicle Damage Appraisers Biennial License Fee: $170 (comprised of $50 application fee and $60 annual fee pursuant to R.I. Gen. Laws § 27-10.1-1) Reg # 103 Page 3 of 6 (b) Renewal Application - Residents and Nonresidents - $120 (comprised of $60 annual fee pursuant to R.I. Gen. Laws § 27-10.1- 1) (4) Surplus Line Brokers (both initial application and renewal) (a) Residents and nonresidents - $100.00 Fee is comprised of the $50 per year or part thereof pursuant to R.I. Gen. Laws § 27-3-42 (b) An individual is only eligible for a Surplus Lines Brokers license if the individual has a valid Insurance Producers License with Property & Casualty lines of authority. In order to obtain a Surplus Lines Brokers license the individual must apply and pay the above fees in addition to fees charged for the Insurance Producers license. (5) Third Party Health Insurance Administrators (a) Fee for Certificate of Authority or Waiver (Resident and Nonresident) - $250 (b) Third Party Administrators must file an annual report pursuant to R.I. Gen. Laws § 27-20.7-14. A fee of $150 must be submitted with that report pursuant to R.I. Gen. Laws § 27-20.7-12. (6) Reinsurance Intermediaries Biennial License Fee (initial application and renewal) - $200 (comprised of $100 per year or part thereof per R.I. Gen. Laws § 27-52-4(d)(3).) Section 5 Miscellaneous Fees (A) The Department will charge the following fees for services and documents for all license types: (1) Duplicate License Fee: $25.00. (2) Letter of Certification Fee: $15.00. (3) Letter of Clearance Fee: $15.00. (4) Returned Check Fee: $25.00. (5) Amendment to License Fee: $50 Reg # 103 Page 4 of 6 (6) Reinstatement Fee - $50 Licenses will be reinstated if the licensee makes application within one year of expiration and pays the reinstatement fee in addition to all applicable licensing renewal fees. Section 6 Contracted Producers Report (1) Each licensed insurance company doing business in Rhode Island must file with the Department a report listing each insurance producer that was paid more than $100 in commissions by the insurer for business written in Rhode Island. (2) The report shall be filed with the Department on or prior to March 1 of each year and shall provide a listing of all insurance producers falling within the criteria for the prior calendar year. (3) Each licensed insurer shall pay to the Department a fee of $30 for each producer listed in the report in accordance with R.I. Gen. Laws § 27-2.4- 4(b)(3). (4) Effective January 1, 2008 all contracted producer reports shall be filed electronically in accordance with instructions given by the Department. (5) The Department may contract with outside vendors for the electronic processing of the report and may require that licensed insurers pay a reasonable fee to such vendors for processing of the report. Section 7 Collection of Licensing Fees and Data The Department may contract with non-governmental entities, including the NAIC or any affiliates or subsidiaries that the NAIC oversees, to perform any ministerial functions, including the collection of fees and data, related to licensing that the Department may deem appropriate. Section 8 Severability If any provision of this Regulation or the application thereof to any person or circumstances is held invalid or unconstitutional, the invalidity or unconstitutionality shall not affect other provisions or applications of this Regulation which can be given effect without the invalid or unconstitutional provision or application, and to this end the provisions of this Regulation are severable. Section 9 Effective Date This Regulation and the amendments thereto shall be effective as indicated below. Reg # 103 Page 5 of 6 EFFECTIVE DATE: July 1, 2004 AMENDED: March 27, 2006 January 1, 2007 September 1, 2008 September 14, 2009 Reg # 103 Page 6 of 6