2015 -- H 5471

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LC001382

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2015

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A N   A C T

RELATING TO INSURANCE -- UNFAIR PRACTICES

     

     Introduced By: Representatives Corvese, Winfield, Carnevale, and Slater

     Date Introduced: February 12, 2015

     Referred To: House Judiciary

     It is enacted by the General Assembly as follows:

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     SECTION 1. Chapter 27-29 of the General Laws entitled "Unfair Competition and

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

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     27-29-18. Private actions. – (a) Notwithstanding any provision of law to the contrary,

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any insured or third-party claimant, may bring an action for money damages against an insurer,

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its employees and agents, as a result of the use or employment by an insurer, employee, agent, or

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person of a method, act or practice declared unlawful by §§ 27-29-4, 27-29-4.4, 27-9.1-1 through

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27-9.1-9. Notwithstanding any provisions of law to the contrary, all such actions may be brought

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in the small claims district, and superior court of the state of Rhode Island in the county in which

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the insurer maintains its principal place of business. If the insurer is a foreign entity all such

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actions shall be brought in the county in which the party bringing the action resides.

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     (b) In any action brought under this section, in addition to the relief provided in this

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section, the court may award, in its discretion, punitive damage, reasonable attorney's fees and

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costs, and may provide other equitable relief that it deems necessary or proper.

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     SECTION 2. This act shall take effect upon passage.

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LC001382

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO INSURANCE -- UNFAIR PRACTICES

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     This act would create a new private cause of action against insurance companies that

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engage in unfair claims settlement practices and unfair and deceptive competition and practices.

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     This act would take effect upon passage.

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LC001382

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