2003 -- S 0431

Chapter 101

2003 -- S 0431

Enacted 07/03/03

 

 

A N A C T

RELATING TO INSURANCE

     

     

     Introduced By: Senators Bates, Celona, and F Caprio

     Date Introduced: February 13, 2003

 

     It is enacted by the General Assembly as follows:

 

     SECTION 1. Section 27-5-3.4 of the General Laws in Chapter 27-5 entitled "Fire

Insurance Policies and Reserves" is hereby amended to read as follows:

     27-5-3.4. Cancellation or nonrenewal of standard fire insurance policy. -- (a) A

company issuing any policy of insurance which is subject to cancellation or nonrenewal by the

company shall effect cancellation or nonrenewal by serving the notice of it provided by the

policy. That notice shall be delivered in hand to the named insured, or be left at his or her last

address as shown by the company's records, or, if its records contain no last address, at his or her

last business, residence, or other address known to the company, or be forwarded to that address

by certified mail, return receipt requested. A return receipt from the United States postal service

showing receipt of the notice at the address of the insured stated in the policy shall be sufficient

proof of notice. If the company does not receive a return receipt from the United States postal

service within ten (10) days, then the company shall forward the notice by first class mail and

maintain proof of mailing of the notice to the insured by United States Postal Service certificate

of mailing in the ordinary course of the insurer's business, and this proof of mailing shall be

sufficient proof of notice.

      (b) If a policy is made payable to a mortgagee or any person other than the named

insured, notice shall be given as provided in subsection (a) to the payee and to the named insured.

      (c) Policies subject to cancellation by the named insured upon giving notice to the

company may be cancelled by serving notice in the manner provided in subsection (a) of this

section upon the company or upon its insurance producer who issued the policy.

     SECTION 2. This act shall take effect upon passage.

     

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LC00552

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