2018 -- H 7909

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LC004675

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2018

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A N   A C T

     RELATING TO INSURANCE -- UNFAIR COMPETITION AND PRACTICES

     Introduced By: Representative Scott Slater

     Date Introduced: February 28, 2018

     Referred To: House Corporations

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 27-29-13 of the General Laws in Chapter 27-29 entitled "Unfair

Competition and Practices" is hereby amended to read as follows:

     27-29-13. Payment of premium -- Cancellation.

     Notwithstanding the provisions of chapter 40 of this title, policy holders of private

passenger motor vehicle insurance and any insurance provided in the surplus lines market

whether admitted or not admitted, shall policyholders on either six (6) month or twelve (12)

month policies shall have the option of paying any policy premiums in installment payments;

provided that for a twelve (12) month policy the insurer may require a payment of fifteen percent

(15%) of the annual premium at time of issuance with the balance to be paid thereafter in nine (9)

subsequent and equal monthly installments thereafter for a six (6) month policy, the insurer may

require a payment of thirty-five percent (35%) of the premium at time of issuance with the

balance to be paid in three (3) subsequent and equal monthly installments thereafter. The insurer

may levy a service charge of up to five dollars ($5.00) per installment period against those

policyholders who choose the installment option. An insurer may levy and collect a maximum fee

or charge of ten dollars ($10.00) for any late payment of premium by a policyholder. A late fee

may not be imposed unless payment is received more than five (5) business days following the

date payment is due. Policyholders shall be entitled to receive no less than thirty (30) days notice

before a cancellation of an automobile insurance policy for any reason except nonpayment of

premium, in which instance policyholders shall be entitled to receive no less than ten (10) days

notice.

     In the alternative the insurer in the surplus lines may use agency bill. The insurer may bill

the surplus line broker or producing agent with the net payment (gross premium less minus any

commissions and fees) and the payment shall not be due to either the surplus lines company or

surplus lines broker by the producing agent earlier than forty-five (45) days after the end of the

month in which the transaction takes place. Only after this forty-five (45) day period may a

cancellation notice be issued for the non-payment of a premium with ten (10) days' notice.

     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 -- UNFAIR COMPETITION AND PRACTICES

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     This act would add insurance provided in the surplus lines market to the payment of

premiums and cancellation regulations contained in the unfair competition and practices chapter.

     This act would take effect upon passage.

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LC004675

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