2023 -- H 5080

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LC000179

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2023

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A N   A C T

RELATING TO INSURANCE -- COVID-19 PANDEMIC INSURANCE RECOVERY ACT

     

     Introduced By: Representatives J Lombardi, Hull, and Felix

     Date Introduced: January 12, 2023

     Referred To: House Corporations

     It is enacted by the General Assembly as follows:

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     SECTION 1. Title 27 of the General Laws entitled "INSURANCE" is hereby amended by

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adding thereto the following chapter:

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CHAPTER 82

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COVID-19 PANDEMIC INSURANCE RECOVERY ACT

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     27-82-1. Statement of intent.

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     The COVID-19 pandemic insurance recovery act provides a mechanism by which certain

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businesses that suffer losses due to an interruption as a result of the coronavirus pandemic may

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recover those losses from their insurer if they had a policy of business interruption insurance in

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force on March 9, 2020, the date on which the governor declared a public health emergency and

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state of emergency in executive order 20-2, or thereafter.

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     27-82-2. Businesses Eligible for Recovery.

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     (a) The provisions of this chapter apply to all businesses covered by a business interruption

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insurance policy with less than one hundred (100) eligible employees in the state of Rhode Island.

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     (b) "Eligible employee" is defined as a full-time employee who works a normal work week

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of twenty-five (25) or more hours.

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     (c) Every policy of insurance for loss or damage to property, which includes the loss of use

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and occupancy and business interruption, in force on March 9, 2020, or thereafter, shall be

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construed to include among the covered perils under that policy, coverage for business interruption

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due to global virus transmission or pandemic, as provided in the governor’s executive order 20-2.

 

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The coverage provided would be subject to the limits under the policy and would indemnify the

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insured for losses incurred during the state of emergency.

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     (d) An insurer which indemnifies an insured who has filed a claim pursuant to its provisions

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may apply to the department of business regulation insurance division for relief and reimbursement

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from funds collected and made available for this purpose

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     (e) The insurance commissioner shall establish procedures for the submission and

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qualification of claims by insurers which are eligible for reimbursement, incorporating such

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standards as are necessary to protect against the submission of fraudulent claims by insureds, and

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appropriate safeguards for insurers to employ in the review and payment of such claims.

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     (f) The insurance commissioner shall impose upon, distribute among, and collect from

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insurance companies, other than life and health insurance companies, the additional amounts as

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may be necessary to recover the amounts paid pursuant to this chapter.

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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 -- COVID-19 PANDEMIC INSURANCE RECOVERY ACT

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     This act would allow businesses that had an insurance policy in place for business

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interruption as of March 9, 2020 or thereafter to recover from their insurance companies for a

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COVID-19 business impact. A business would be eligible for recovery if they have less than one

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hundred (100) employees in the state that work twenty-five (25) or more hours a week to qualify

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for recovery under this act.

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     This act would take effect upon passage.

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