2017 -- S 0432

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LC001964

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2017

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A N   A C T

RELATING TO INSURANCE - DOMESTIC INSURANCE COMPANIES

     Introduced By: Senators Ruggerio, McCaffrey, Goodwin, Pearson, and Miller

     Date Introduced: March 02, 2017

     Referred To: Senate Commerce

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 27-1-39 of the General Laws in Chapter 27-1 entitled "Domestic

Insurance Companies" is hereby amended to read as follows:

     27-1-39. Discrimination in rates prohibited.

     (a) No insurance company organized to do business within this state shall make any

distinction or discrimination as to the premiums or rates charged for policies of casualty, fire,

home owners, accident and health, or marine insurance, nor shall the company make or permit the

rejection of an individual's application for insurance coverage, and the determination of the rate

class for the individual, solely on the basis of a disability unless the disability is relevant to the

risk of loss, nor shall any insurance company make or require any rebate, diminution, or discount

upon the sum to be paid on any policy based on any disability discrimination, nor insert in the

policy any condition nor make any stipulation, where the person insured shall bind himself or

herself, his or her heirs, executors, administrators, and assigns, to accept any less sum than the

full value or amount of the policy in case of a claim accruing on the policy by reason of the claim

of the person insured, other than those stipulations or conditions as are imposed upon all persons

in similar cases, and any stipulation or condition made in this manner or inserted shall be void.

     (b) No insurance company organized to do business within this state shall make any

distinction or discrimination as to the premiums or rates charged for automobile insurance

policies, nor shall the company make or permit the rejection of an individual's application for

insurance coverage, and the determination of the rate class of the individual, solely on the basis of

a disability or the modification of the automobile with specialized equipment that permits an

individual with a disability to operate the automobile, unless the disability or modification of the

automobile is relevant to the risk or loss, nor shall any insurance company make or require any

rebate, diminution, or discount upon the sum to be paid on any policy based on any disability

discrimination, nor insert in the policy any condition nor make any stipulation where the person

insured shall bind himself or herself, his or her heirs, executors, administrators, and assigns, to

accept any less sum than the full value or amount of the policy in case of a claim accruing on the

policy by reason of the claim of the person insured, other than those stipulations or conditions as

are imposed upon all persons in similar cases, and any stipulation or condition made in this

manner or inserted shall be void. The department of business regulation shall enforce the

provisions of this section.

     (c) No insurance company organized to do business within this state shall make any

distinction or discrimination as to the premiums or rates charged for policies of casualty, fire,

home owners, accident and health, marine or automobile insurance, nor shall the company make

or permit the rejection of an individual's application for insurance coverage, and the

determination of the rate class for the individual, solely on the basis of a domestic partner

relationship, nor shall any insurance company make or require any rebate, diminution, or discount

upon the sum to be paid on any policy based on any domestic partner relationship discrimination,

nor insert in the policy any condition nor make any stipulation, where the person insured shall

bind themselves, their heirs, executors, administrators, and assigns, to accept any less sum than

the full value or amount of the policy in case of a claim accruing on the policy by reason of the

claim of the person insured, other than those stipulations or conditions as are imposed upon all

persons in similar cases, and any stipulation or condition made in this manner or inserted shall be

void. For the purposes of this section, "domestic partner" shall have the same meaning as defined

in §8-8.2-20. The department of business regulation shall enforce the provisions of this section.

     SECTION 2. Section 27-2-23 of the General Laws in Chapter 27-2 entitled "Foreign

Insurance Companies" is hereby amended to read as follows:

     27-2-23. Discrimination in rates prohibited.

     (a) No foreign insurance company licensed to do or doing business in this state shall

make any distinction or discrimination as to the premiums or rates charged for policies of

casualty, fire, home owners, accident and health, or marine insurance, nor shall any company

make or permit the rejection of an individual's application for insurance coverage, and the

determination of the rate class for the individual, solely on the basis of a disability unless the

disability is relevant to the risk of loss, nor shall any company make or require any rebate,

LC001964 - Page 2 of 5

diminution, or discount upon the sum to be paid on any policy based on any disability

discrimination, nor insert in the policy any condition, nor make any stipulation, where the person

insured shall bind himself or herself, his or her heirs, executors, administrators, and assigns, to

accept any less sum than the full value or amount of the policy in case of a claim accruing on the

policy by reason of the claim of the person insured, other than conditions or stipulations as are

imposed upon all persons in similar cases, and any stipulation or condition made in this manner

or inserted shall be void.

     (b) No foreign insurance company licensed to do or doing business in this state shall

make any distinction or discrimination as to the premiums or rates charged for automobile

insurance policies, nor shall the company make or permit the rejection of an individual's

application for insurance coverage, and the determination of the rate class of the individual, solely

on the basis of a disability or the modification of the automobile with specialized equipment that

permits an individual with a disability to operate the automobile, unless the disability or

modification of the automobile is relevant to the risk of loss, nor shall any insurance company

make or require any rebate, diminution, or discount upon the sum to be paid on any policy based

on any disability discrimination, nor insert in the policy any condition, nor make any stipulation,

where the person insured shall bind himself or herself, his or her heirs, executors, administrators,

and assigns, to accept any less sum than the full value or amount of the policy in case of a claim

accruing on the policy by reason of the claim of the person insured, other than conditions or

stipulations as are imposed upon all persons in similar cases, and any stipulation or condition

made or inserted shall be void. The department of business regulation shall enforce the provisions

of this section.

     (c) No insurance company organized to do business within this state shall make any

distinction or discrimination as to the premiums or rates charged for policies of casualty, fire,

home owners, accident and health, marine or automobile insurance, nor shall the company make

or permit the rejection of an individual's application for insurance coverage, and the

determination of the rate class for the individual, solely on the basis of a domestic partner

relationship, nor shall any insurance company make or require any rebate, diminution, or discount

upon the sum to be paid on any policy based on any domestic partner relationship discrimination,

nor insert in the policy any condition nor make any stipulation, where the person insured shall

bind themselves, their heirs, executors, administrators, and assigns, to accept any less sum than

the full value or amount of the policy in case of a claim accruing on the policy by reason of the

claim of the person insured, other than those stipulations or conditions as are imposed upon all

persons in similar cases, and any stipulation or condition made in this manner or inserted shall be

LC001964 - Page 3 of 5

void. For the purposes of this section, "domestic partner" shall have the same meaning as defined

in §8-8.2-20. The department of business regulation shall enforce the provisions of this section.

     SECTION 3. This act shall take effect upon passage and apply to all policies issued or

renewed on or after January 1, 2018.

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LC001964

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO INSURANCE - DOMESTIC INSURANCE COMPANIES

***

     This act would prohibit domestic and foreign insurance companies from any distinction

or discrimination against individuals in a domestic partner relationship regarding policies issued

or renewed in this state.

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

renewed on or after January 1, 2018.

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LC001964

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