2013 -- S 0803

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LC02101

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2013

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A N A C T

RELATING TO INSURANCE -- UNFAIR CLAIMS SETTLEMENT PRACTICES ACT

     Introduced By: Senator Maryellen Goodwin

     Date Introduced: March 27, 2013

     Referred To: Senate Judiciary

It is enacted by the General Assembly as follows:

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     SECTION 1. Section 27-9.1-5 of the General Laws in Chapter 27-9.1 entitled "Unfair

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Claims Settlement Practices Act" is hereby amended to read as follows:

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     27-9.1-5. Response and statement of charges. -- The director shall provide an initial

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response within two (2) weeks to any written consumer complaint containing specific and

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credible allegation of an unfair claims settlement practice punishable pursuant to this chapter.

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Whenever Within thirty (30) days of receipt of an insurer's response to a written complaint, the

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director has must determine if there is reasonable cause to believe that any insurer doing business

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in this state is engaging in any unfair claims practice and that a proceeding in respect to the

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practice would be in the public interest, the . Whenever a determination of reasonable cause has

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been made, the director shall issue and serve upon the insurer a statement of the charges in that

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respect and a notice of hearing, which notice shall set a hearing date not less than thirty (30) days

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from the date of the notice.

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     If reasonable cause has not been established, the director shall provide notice of its

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decision to the complainant within thirty (30) days of receipt of an insurer's response to a written

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complaint.

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO INSURANCE -- UNFAIR CLAIMS SETTLEMENT PRACTICES ACT

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     This act would require that the director of business regulation, within thirty (30) days of

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receipt of an insurer's response to a written complaint, must determine if there is reasonable cause

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that the insurer is engaging in an unfair claims practice, and if reasonable cause is not established,

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the director would provide notice of the decision to the complainant within thirty (30) days of the

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insurer's response to the written complaint.

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     This act would take effect upon passage.

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LC02101

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