2014 -- H 8009

========

LC005348

========

     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2014

____________

A N   A C T

RELATING TO INSURANCE - CASUALTY INSURANCE GENERALLY

     Introduced By: Representatives Trillo, Costa, and Giarrusso

     Date Introduced: April 03, 2014

     Referred To: House Corporations

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 27-8-7 of the General Laws in Chapter 27-8 entitled "Casualty

Insurance Generally" is hereby amended to read as follows:

     27-8-7. Terms to be stated in policy -- Rebates prohibited. – (a) No insurance

corporation authorized to do any insurance business within this state, or any officer, insurance

producer, or their representative, shall make any contract for insurance, on property or risks

located within this state, or against any liability, casualty, accident, or hazard that may arise or

occur in this state, or any agreement as to that contract, other than as plainly expressed in the

policy issued or to be issued; nor shall any corporation, or officer, insurance producer, or their

representative, directly or indirectly, in any manner, pay or allow or offer to pay or allow to the

insured named in the policy or to any employee of the insured as an inducement to the insurance,

or after the insurance has been effected, any rebate from the premium which is specified in the

policy or any special favor or advantage in the dividends or other benefit to accrue on the policy;

or any valuable consideration or inducement, not specified in the policy or contract of insurance,

or give, sell, or purchase, as an inducement to the insurance, or in connection with it, any stock,

bonds, or other securities of any insurance or other corporation or association, or any dividends or

profits accrued on the stock, bonds, or securities, or anything of value, not specified in the policy;

nor shall any insurance producer or representative, or any other person, directly or indirectly,

either by sharing commissions or in any manner, pay or allow or offer to pay or allow to the

insured named in the policy, or to any employee of the insured, as an inducement to the

insurance, or after the insurance has been effected, any rebate from the premium which is

specified in the policy.

     (b) Nothing in this chapter shall prevent any corporation lawfully doing insurance

business in this state from the distribution of surplus and dividends to policyholders, nor shall this

chapter prevent any corporation, or its agent, from paying commissions to a licensed insurance

producer who has negotiated for the insurance, nor shall it prevent any licensed insurance

producer from sharing or dividing a commission earned or received by the insurance producer

with any other licensed insurance producer, who has aided the insurance producer in respect to

the insurance for the negotiation of which the commission has been earned or paid.

     (c) All policies of insurance issued or to be issued shall identify the real and/or personal

property to be insured on any invoices issued to insureds in addition to those properties set forth

in the declaration pages of the policy. Real property shall be listed with its address, motor and

other vehicles with their year, make, and model, seagoing vessels, and aircraft with their year and

model and precious metals and jewels with the weight and value of the items insured.

     SECTION 2. Chapter 27-5 of the General Laws entitled "Fire Insurance Policies and

Reserves" is hereby amended by adding thereto the following section:

     27-5-3.9. Identification of insured property on invoices. -- All policies of insurance

issued or to be issued shall identify the real and/or personal property to be insured on any

invoices issued to insureds in addition to those properties set forth in the declaration pages of the

policy. Real property shall be listed with its address, motor and other vehicles with their year,

make, and model, seagoing vessels, and aircraft with their year and model and precious metals

and jewels with the weight and value of the items insured.

     SECTION 3. Chapter 27-7 of the General Laws entitled "Liability Insurance" is hereby

amended by adding thereto the following section:

     27-7-2.6. Identification of insured property on invoices. -- All policies of insurance

issued or to be issued shall identify the real and/or personal property to be insured on any

invoices issued to insureds in addition to those properties set forth in the declaration pages of the

policy. Real property shall be listed with its address, motor and other vehicles with their year,

make, and model, seagoing vessels, and aircraft with their year and model and precious metals

and jewels with the weight and value of the items insured.

     SECTION 4. This act shall take effect upon passage and shall apply to all insurance

policies issued or renewed on or after July 1, 2014.

========

LC005348

========

LC005348 - Page 2 of 3

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO INSURANCE - CASUALTY INSURANCE GENERALLY

***

     This act would require all casualty and liability insurance companies to explicitly identify

all real and personal property insured on invoices sent to their insureds for policies renewing or

issued on or after July 1, 2014.

     This act would take effect upon passage and would apply to all insurance policies issued

or renewed on or after July 1, 2014.

========

LC005348

========

LC005348 - Page 3 of 3