2023 -- H 5438

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LC001009

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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 COURTS AND CIVIL PROCEDURE--PROCEDURE GENERALLY --

CAUSES OF ACTION

     

     Introduced By: Representative Jason Knight

     Date Introduced: February 08, 2023

     Referred To: House Judiciary

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 9-1-50 of the General Laws in Chapter 9-1 entitled "Causes of

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Action" is hereby amended to read as follows:

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     9-1-50. Settled claims not paid within thirty (30) days.

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     (a) Whenever any claim is settled, the insurance company, adjusting company, or any other

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person, firm, or corporation responsible for paying the settlement shall make payment within thirty

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(30) days from the date the claimant or his or her attorney sends the release. The signed release

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may be transmitted to the party responsible for paying the settlement or their attorney in electronic

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format. Failure to make payment within thirty (30) days shall raise a presumption that failure to do

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so was a willful and wanton disregard for the rights of the claimant. In addition to all other remedies,

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the payor shall be liable to the claimant in a separate cause of action for punitive damages and

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interest which shall be computed at the rate of twelve percent (12%) per annum from the date the

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cause of action giving rise to the settlement occurred until the judgment on the claim brought

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pursuant to this section is entered.

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     (b) Any claim brought under the provisions of this section shall be given a priority on the

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trial calendar.

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     SECTION 2. This act shall take effect upon passage.

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LC001009

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO COURTS AND CIVIL PROCEDURE--PROCEDURE GENERALLY --

CAUSES OF ACTION

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     This act would permit a signed release to be transmitted to the party responsible for paying

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the settlement or their attorney by electronic means.

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     This act would take effect upon passage.

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LC001009

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