2014 -- S 2307

========

LC004380

========

     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: Senator Roger Picard

     Date Introduced: February 12, 2014

     Referred To: Senate Commerce

     It is enacted by the General Assembly as follows:

1

     SECTION 1. Section 27-8-11 of the General Laws in Chapter 27-8 entitled "Casualty

2

Insurance Generally" is hereby amended to read as follows:

3

     27-8-11. Regulations on cancellation and renewal. -- (a) In addition to and not in lieu

4

of any other power the commissioner has to issue rules and regulations, the commissioner of

5

insurance may promulgate, in accordance with the procedure established in chapter 35 of title 42,

6

reasonable rules and regulations concerning cancellation and renewal of liability and property

7

damage insurance for automobiles rated as private passenger automobiles. Those regulations may

8

require that the insurer shall furnish to the named insured the reason or reasons for cancellation or

9

nonrenewal. Those regulations shall also require that the insurer furnish, at least thirty (30) days

10

prior to renewal, written notice of material coverage modifications any coverage elimination,

11

reduction, diminution or increased deductible not at the request of the insured; and in this case the

12

notice shall itemize and describe the coverage changes and shall be separate from the renewal

13

policy and the notice shall be captioned "INSURANCE COVERAGE REDUCTION NOTICE".

14

If the insurer fails to provide such notice, the coverage provided to the named insured shall

15

remain in effect until notice is provided or until the effective date of replacement coverage

16

obtained by the named insured, whichever occurs first. For the purpose of this section, notice is

17

considered given thirty (30) days following the date of giving of the notice. These coverage

18

changes must be approved by the insurance division with respect to those types of insurance

19

defined in section 27-8-1(1) -- (8), issued to non-business insured and bodily injury and property

 

1

damage liability coverage issued to non-business insured. There shall be no liability on the part

2

of, and no cause of action of any nature shall arise against, the commissioner of insurance or any

3

insurer, their authorized representatives, agents, or employees, or any firm, person, or corporation

4

furnishing to the insurer or commissioner information as to the reasons for cancellation or

5

nonrenewal, for any statement made by any of them in any written notice of cancellation or

6

nonrenewal, or in any other communication oral or written specifying the reasons for cancellation

7

or nonrenewal, or for the providing of information pertaining to the cancellation or nonrenewal,

8

or for statements made or evidence submitted at any hearing conducted in connection with the

9

cancellation or nonrenewal.

10

      (b) The commissioner shall promulgate regulations with respect to personal motor

11

vehicle insurance, homeowners insurance, and residential fire insurance, or any components of

12

that insurance requiring notification to policyholders upon renewal of any material changes in

13

policy deductibles, limits, coverage, conditions or definitions, unless the change was requested by

14

the policyholder. coverage elimination, reduction, diminution or increased deductible not at the

15

request of the insured.

16

     SECTION 2. This act shall take effect on January 1, 2015.

========

LC004380

========

 

LC004380 - Page 2 of 2

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO INSURANCE - CASUALTY INSURANCE GENERALLY

***

1

     This act would require insurers to send insureds a notice captioned "Insurance Coverage

2

Reduction Notice" itemizing and describing any coverage elimination, reduction, diminution or

3

increased deductible not at the request of the insureds. This act would also provide that failure of

4

the insurers to provide the notice would void any coverage changes until the notice were provided

5

or until the effective date of replacement coverage were obtained by the insureds, whichever

6

occurs first.

7

     This act would take effect on January 1, 2015.

========

LC004380

========

 

LC004380 - Page 3 of 2