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