2014 -- S 2888

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LC005354

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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 - CASUALTY INSURANCE RATING

     

     Introduced By: Senators Goodwin, and Ruggerio

     Date Introduced: April 09, 2014

     Referred To: Senate Judiciary

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 27-9-7.3 of the General Laws in Chapter 27-9 entitled "Casualty

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Insurance Rating" is hereby repealed.

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     27-9-7.3. Rating for nonbusiness policies. -- (a) Notwithstanding the requirements of

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section 27-9-7, a filing made by an insurer under this section that provides for an overall

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statewide rate increase or decrease of no more than five percent (5%) in the aggregate for all

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coverages that are subject to the filing may take effect the date it is filed. The five percent (5%)

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limitation does not apply on an individual insured basis. No more than one rate filing may be

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made by an insurer pursuant to the expedited process provided in this subsection during any

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twelve (12) month period, unless a rate filing, when combined with any other rate filing or filings

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made by an insurer within the preceding twelve (12) months, does not result in an overall

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statewide increase or decrease of more than five percent (5%) in the aggregate for all coverages

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that are subject to the filing.

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      (b) Rate filings falling outside of the limitation provided for in subsection (a) of this

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section shall be subject to section 27-9-9, unless those filings are other exempt from those

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provisions pursuant to another section of the insurance code.

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      (c) A filing submitted pursuant to subsection (a) of this section is considered to comply

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with state law. However, if the commissioner of insurance determines that the filing is inadequate

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or unfairly discriminatory, he/she shall issue a written order specifying in detail the provisions of

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the insurance code the insurer has violated and the reasons the filing is inadequate or unfairly

 

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discriminatory and stating a reasonable future date on which the filing is to be considered no

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longer effective. An order by the commissioner pursuant to this subsection that is issued more

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than thirty (30) days from the date on which the commissioner received the rate filing is

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prospective only and does not affect any contract issued or made before the effective date of the

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order. For purposes of this act, "unfairly discriminatory" means a rate for a risk that is classified

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in whole or in part on the basis of race, color, creed or national origin.

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      (d) No rate increase within the limitation specified in subsection (a) of this section may

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be implemented with regard to an individual existing policy, unless the increase is applied at the

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time of a renewal or conditional renewal of an existing policy and the insurer, at least thirty (30)

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days in advance of the end of the insured's policy period, mails or delivers to the named insured,

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at the address shown in the policy, a written notice that clearly and conspicuously discloses its

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intention to change the rate. A notice of renewal or conditional renewal that clearly and

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conspicuously discloses the renewal premium applicable to the policy shall be deemed to be in

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compliance with this subsection.

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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 - CASUALTY INSURANCE RATING

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     This act would eliminate the process that allows filings by casualty insurers seeking rate

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increases or decreases of not more than five percent (5%) to become effective when filed.

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     This act would take effect upon passage.

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