The Rhode Island Department of Business Regulation (the "DBR") recently proposed Insurance Regulation 117, Insurance Issued to Trusts and Associations (the "Proposed Regulation"), in order to "protect the public from a regulatory vacuum by ensuring that insurance issued or renewed in Rhode Island through a trust or association is adequately regulated." According to the Proposed Regulation, the DBR has received complaints from consumers residing out of state that have received certificates of insurance issued to groups outside of Rhode Island indicating that their state of domicile claims that it does not have regulatory authority over the policy.

The Proposed Regulation would require insurers issuing policies through Rhode Island trusts or associations to any person residing or located in another state to meet all applicable requirements of the insurance laws of the state in which the individual resides or the group is located, as applicable. The Proposed Regulation would also require that all forms issued in connection with such policies provide that the insurance regulatory agency and courts of the state in which the individual resides or the group is located shall have jurisdiction over the individual or group insurance coverage as if such coverage or plan were issued directly to the insured. The Proposed Regulation would apply to policies delivered, issued for delivery, or renewed in Rhode Island after June 1, 2011.

Comments regarding the Proposed Regulation may be submitted to the DBR by April 26, 2011, on which date a public hearing regarding the Proposed Regulation is scheduled. If you would like EAPD to assist you with preparing and submitting comments, please click the "E-mail the Editor" button and provide your contact information for follow up by an EAPD attorney.

To view the Proposed Regulation, click here.