2014 -- S 2564

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LC004739

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2014

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A N   A C T

RELATING TO INSURANCE -- UNFAIR CLAIMS SETTLEMENT PRACTICES ACT

     Introduced By: Senator Maryellen Goodwin

     Date Introduced: February 27, 2014

     Referred To: Senate Judiciary

     It is enacted by the General Assembly as follows:

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

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

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

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

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

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

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

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

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

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

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

from the date of the notice.

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

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

complaint.

     SECTION 2. This act shall take effect upon passage.

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LC004739

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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

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

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

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

insurer's response to the written complaint.

     This act would take effect upon passage.

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LC004739

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