Chapter 357
2003 --
H 5476 SUBSTITUTE A
Enacted 07/17/03
AN ACT
RELATING
TO INSURANCE -- FEDERAL RIOT REINSURANCE REIMBURSEMENT
FUND
Introduced
By: Representative Roger A. Picard
Date
Introduced: February 06, 2003
It
is enacted by the General Assembly as follows:
SECTION
1. Section 27-33-10 of the General Laws in Chapter 27-33 entitled "Federal
Riot
Reinsurance Reimbursement Fund" are hereby amended to read as follows:
27-33-10.
"Basic property insurance" defined. -- "Basic property
insurance" for the
purposes
of this chapter means fire, extended coverage, vandalism, malicious mischief,
and
sprinkler
leakage insurance. It shall also include homeowners package coverages which
include
dwelling
and tenant forms, as well as the general liability coverages for one (1) to
four (4) family
owner
and nonowner occupied dwellings, either by endorsement or as a stand-alone
policy. The
FAIR
Plan shall be authorized to make rate filings using the standard that rates shall
not be
excessive,
inadequate or unfairly discriminatory, giving due consideration to the past and
prospective
loss and expense experience for basic property insurance, written in this
state, trends
in
the frequency and severity of losses, the investment income of the FAIR Plan,
and such other
information
as the director of business regulation may require. All rates shall be
calculated to be
self-supporting
consistent with sound actuarial principles. Rates for basic property insurance
shall
be
approved by the department of business regulation, notwithstanding any limits
on rate
approval
authority. Nothing in this section shall be deemed to affect the duty of
licensed insurers
in
the state of Rhode Island to participate, as needed, on a direct basis, in the
program pursuant to
sections
27-33-2 and 27-33-11 and any rules and regulations promulgated thereunder, and
to pay
their
proportionate share of losses and expenses incurred by the program upon assessment
by the
program.
SECTION 2. This act shall take effect on January 1, 2004.
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LC01801/SUB
A/3
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