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:

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

adding thereto the following chapter:

CHAPTER 82

COVID-19 PANDEMIC INSURANCE RECOVERY ACT

     27-82-1. Statement of intent.

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

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

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

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

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

     27-82-2. Businesses Eligible for Recovery.

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

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

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

of twenty-five (25) or more hours.

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

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

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

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

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

insured for losses incurred during the state of emergency.

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

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

from funds collected and made available for this purpose

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

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

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

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

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

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

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

     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

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

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

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

for recovery under this act.

     This act would take effect upon passage.

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