2013 -- S 0377 SUBSTITUTE A | |
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LC01271/SUB A | |
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STATE OF RHODE ISLAND | |
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IN GENERAL ASSEMBLY | |
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JANUARY SESSION, A.D. 2013 | |
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A N A C T | |
RELATING TO INSURANCE -- BINDERS | |
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Introduced By: Senators Bates, Picard, and Walaska | |
Date Introduced: February 13, 2013 | |
Referred To: Senate Corporations | |
It is enacted by the General Assembly as follows: | |
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SECTION 1. Title 27 of the General Laws entitled "INSURANCE" is hereby amended |
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by adding thereto the following chapter: |
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CHAPTER 9.4 |
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INSURANCE BINDERS AS EVIDENCE OF COVERAGE |
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27-9.4-1. Short title. -- This chapter shall be known and may be cited as the "Model Act |
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Regarding Use of Property and Casualty Insurance Binders as Evidence of Coverage." |
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27-9.4-2. Purpose. -- This chapter requires that property and casualty insurance binders |
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obligate coverage until a policy is issued or cancelled. |
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27-9.4-3. Definitions. -- As used in this chapter: |
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(1) "Insurance binder" means a written temporary contract of insurance authorized by an |
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insurer issued prior to the insurance policy that includes: |
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(i) The name and address of the insured and any additional named insureds, mortgagees, |
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or lienholders; |
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(ii) A description of the property insured; |
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(iii) A description of the nature and amount of coverage; |
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(iv) The identity of the insurer and of the authorized representative executing the binder; |
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(v) The effective and expiration date of coverage; and |
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(vi) The binder number or the policy number where applicable to a policy extension. |
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(2) "Insurance policy" means a contract of insurance describing the term, coverage, |
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premiums, and deductibles. |
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(3) "Insured" means the person, group, or property for which an insurance policy is |
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issued. |
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(4) "Insurer" means any organization that issues property or casualty insurance. |
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(5) "Lender" means an individual, partnership, corporation, association, or other entity, or |
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loan servicer acting on behalf of such party, who lends money and receives or otherwise acquires |
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a mortgage, a lien, a deed of trust, or any other security interest in or on any real or personal |
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property as security for the loan. |
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27-9.4-4. Insurer Obligations. -- An insurer that provides an insurance binder is |
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obligated to provide the coverage according to the terms of such binder until the insurer issues the |
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insurance policy or cancels the binder. |
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27-9.4-5. Penalties. -- Any person or entity who violates this chapter may be subject to |
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action pursuant to section 42-14-16. |
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SECTION 2. This act shall take effect on October 1, 2013. |
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LC01271/SUB A | |
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EXPLANATION | |
BY THE LEGISLATIVE COUNCIL | |
OF | |
A N A C T | |
RELATING TO INSURANCE -- BINDERS | |
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This act would authorize the use of property and casualty insurance binders as evidence |
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of coverage. |
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This act would take effect on October 1, 2013. |
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LC01271/SUB A | |
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