§ 7-12-58 Insurance or financialresponsibility of registered limited liability partnerships. – (a) A registered limited liability partnership that is to perform professionalservices as defined in § 7-5.1-2 of the general laws shall carry, ifreasonably available, liability insurance of a kind that is designed to coverthe kinds of negligence, wrongful acts or misconduct for which liability islimited by § 7-12-26(b). The insurance shall be in the aggregate amount offifty thousand dollars ($50,000) multiplied by the number of professionalemployees of the registered limited liability partnership as of the policyanniversary date; provided, that in no case shall the coverage be less than onehundred thousand dollars ($100,000) but in no event shall the necessarycoverage exceed a maximum of five hundred thousand dollars ($500,000);provided, further, that any policy for insurance coverage may include adeductible provision in any amount not to exceed twenty-five thousand dollars($25,000) for each claim multiplied by the number of professional employees ofthe limited liability partnership as of the date of the issuance of the policy.The policy or policies of insurance may be subject to any terms, conditions,exclusions and endorsements that are typically contained in policies of thistype.
(b) If, in any proceeding, compliance by a partnership withthe requirements of subsection (a is disputed:
(1) That issue is determined by the court, and
(2) The burden of proof of compliance is on the person whoclaims the limitation of liability in § 7-12-26(b).
(c) If a registered limited liability partnership is incompliance with the requirements of subsection (a), the requirements of thissection shall not be admissible or in any way be made known to a jury indetermining an issue of liability for or extent of the debt or obligation ordamages in question.
(d) Insurance is reasonably available for the purpose ofsubsection (a) if, at the time that the coverage would apply to the negligence,wrongful acts or misconduct in question it was reasonably available to similartypes of partnerships through the admitted or eligible surplus lines market.
(e) A registered limited liability partnership is consideredto be in compliance with subsection (a) if the partnership provides fivehundred thousand dollars ($500,000) of funds specifically designated andsegregated for the satisfaction of judgments against the partnership based onthe forms of negligence, wrongful acts and misconduct for which liability islimited by § 7-12-26(2) by:
(1) Deposit in trust or in bank escrow of cash, bankcertificates of deposit or United States Treasury obligations; or
(2) A bank letter of credit or insurance company bonds.
(f) To the extent that a partnership maintains liabilityinsurance or segregated funds pursuant to the laws or regulations of anotherjurisdiction, the liability insurance or segregated funds are deemed to satisfythis section if the amount hereof is equal to or greater than the amountspecified in subsection (a) or (e).
§ 7-12-58 Insurance or financialresponsibility of registered limited liability partnerships. – (a) A registered limited liability partnership that is to perform professionalservices as defined in § 7-5.1-2 of the general laws shall carry, ifreasonably available, liability insurance of a kind that is designed to coverthe kinds of negligence, wrongful acts or misconduct for which liability islimited by § 7-12-26(b). The insurance shall be in the aggregate amount offifty thousand dollars ($50,000) multiplied by the number of professionalemployees of the registered limited liability partnership as of the policyanniversary date; provided, that in no case shall the coverage be less than onehundred thousand dollars ($100,000) but in no event shall the necessarycoverage exceed a maximum of five hundred thousand dollars ($500,000);provided, further, that any policy for insurance coverage may include adeductible provision in any amount not to exceed twenty-five thousand dollars($25,000) for each claim multiplied by the number of professional employees ofthe limited liability partnership as of the date of the issuance of the policy.The policy or policies of insurance may be subject to any terms, conditions,exclusions and endorsements that are typically contained in policies of thistype.
(b) If, in any proceeding, compliance by a partnership withthe requirements of subsection (a is disputed:
(1) That issue is determined by the court, and
(2) The burden of proof of compliance is on the person whoclaims the limitation of liability in § 7-12-26(b).
(c) If a registered limited liability partnership is incompliance with the requirements of subsection (a), the requirements of thissection shall not be admissible or in any way be made known to a jury indetermining an issue of liability for or extent of the debt or obligation ordamages in question.
(d) Insurance is reasonably available for the purpose ofsubsection (a) if, at the time that the coverage would apply to the negligence,wrongful acts or misconduct in question it was reasonably available to similartypes of partnerships through the admitted or eligible surplus lines market.
(e) A registered limited liability partnership is consideredto be in compliance with subsection (a) if the partnership provides fivehundred thousand dollars ($500,000) of funds specifically designated andsegregated for the satisfaction of judgments against the partnership based onthe forms of negligence, wrongful acts and misconduct for which liability islimited by § 7-12-26(2) by:
(1) Deposit in trust or in bank escrow of cash, bankcertificates of deposit or United States Treasury obligations; or
(2) A bank letter of credit or insurance company bonds.
(f) To the extent that a partnership maintains liabilityinsurance or segregated funds pursuant to the laws or regulations of anotherjurisdiction, the liability insurance or segregated funds are deemed to satisfythis section if the amount hereof is equal to or greater than the amountspecified in subsection (a) or (e).
§ 7-12-58 Insurance or financialresponsibility of registered limited liability partnerships. – (a) A registered limited liability partnership that is to perform professionalservices as defined in § 7-5.1-2 of the general laws shall carry, ifreasonably available, liability insurance of a kind that is designed to coverthe kinds of negligence, wrongful acts or misconduct for which liability islimited by § 7-12-26(b). The insurance shall be in the aggregate amount offifty thousand dollars ($50,000) multiplied by the number of professionalemployees of the registered limited liability partnership as of the policyanniversary date; provided, that in no case shall the coverage be less than onehundred thousand dollars ($100,000) but in no event shall the necessarycoverage exceed a maximum of five hundred thousand dollars ($500,000);provided, further, that any policy for insurance coverage may include adeductible provision in any amount not to exceed twenty-five thousand dollars($25,000) for each claim multiplied by the number of professional employees ofthe limited liability partnership as of the date of the issuance of the policy.The policy or policies of insurance may be subject to any terms, conditions,exclusions and endorsements that are typically contained in policies of thistype.
(b) If, in any proceeding, compliance by a partnership withthe requirements of subsection (a is disputed:
(1) That issue is determined by the court, and
(2) The burden of proof of compliance is on the person whoclaims the limitation of liability in § 7-12-26(b).
(c) If a registered limited liability partnership is incompliance with the requirements of subsection (a), the requirements of thissection shall not be admissible or in any way be made known to a jury indetermining an issue of liability for or extent of the debt or obligation ordamages in question.
(d) Insurance is reasonably available for the purpose ofsubsection (a) if, at the time that the coverage would apply to the negligence,wrongful acts or misconduct in question it was reasonably available to similartypes of partnerships through the admitted or eligible surplus lines market.
(e) A registered limited liability partnership is consideredto be in compliance with subsection (a) if the partnership provides fivehundred thousand dollars ($500,000) of funds specifically designated andsegregated for the satisfaction of judgments against the partnership based onthe forms of negligence, wrongful acts and misconduct for which liability islimited by § 7-12-26(2) by:
(1) Deposit in trust or in bank escrow of cash, bankcertificates of deposit or United States Treasury obligations; or
(2) A bank letter of credit or insurance company bonds.
(f) To the extent that a partnership maintains liabilityinsurance or segregated funds pursuant to the laws or regulations of anotherjurisdiction, the liability insurance or segregated funds are deemed to satisfythis section if the amount hereof is equal to or greater than the amountspecified in subsection (a) or (e).
