Chapter

Chapter 481

2004 -- H 8042 SUBSTITUTE A

Enacted 07/07/04

A N A C T

RELATING TO INSURANCE -- CASUALTY INSURANCE RATING

Introduced By: Representatives Kennedy, and Winfield

Date Introduced: February 24, 2004

It is enacted by the General Assembly as follows:

SECTION 1. Chapter 27-9 of the General Laws entitled "Casualty Insurance Rating" is

hereby amended by adding thereto the following section:

27-9-7.3. Rating for nonbusiness policies. – (a) Notwithstanding the requirements of

section 27-9-7, a filing made by an insurer under this section that provides for an overall

statewide rate increase or decrease of no more than five percent (5%) in the aggregate for all

coverages that are subject to the filing may take effect the date it is filed. The five percent (5%)

limitation does not apply on an individual insured basis. No more than one rate filing may be

made by an insurer pursuant to the expedited process provided in this subsection during any

twelve (12) month period, unless a rate filing, when combined with any other rate filing or filings

made by an insurer within the preceding twelve (12) months, does not result in an overall

statewide increase or decrease of more than five percent (5%) in the aggregate for all coverages

that are subject to the filing.

(b) Rate filings falling outside of the limitation provided for in subsection (a) of this

section shall be subject to section 27-9-9, unless those filings are other exempt from those

provisions pursuant to another section of the insurance code.

with state law. However, if the commissioner of insurance determines that the filing is

inadequate or unfairly discriminatory, he/she shall issue a written order specifying in detail the

provisions of the insurance code the insurer has violated and the reasons the filing is inadequate

or unfairly discriminatory and stating a reasonable future date on which the filing is to be

considered no longer effective. An order by the commissioner pursuant to this subsection that is

issued more than thirty (30) days from the date on which the commissioner received the rate

filing is prospective only and does not affect any contract issued or made before the effective date

of the order. For purposes of this act, "unfairly discriminatory" means a rate for a risk that is

classified in whole or in part on the basis of race, color, creed or national origin.

(d) No rate increase within the limitation specified in subsection (a) of this section may

be implemented with regard to an individual existing policy, unless the increase is applied at the

time of a renewal or conditional renewal of an existing policy and the insurer, at least thirty (30)

days in advance of the end of the insured's policy period, mails or delivers to the named insured,

at the address shown in the policy, a written notice that clearly and conspicuously discloses its

intention to change the rate. A notice of renewal or conditional renewal that clearly and

conspicuously discloses the renewal premium applicable to the policy shall be deemed to be in

compliance with this subsection.

SECTION 2. Chapter 27-6 of the General Laws entitled "Fire and Marine Insurance

Rating" is hereby amended by adding thereto the following section:

27-6-8.1. Rating for nonbusiness policies. -- (a) Notwithstanding the requirements of

section 27-6-8, a filing made by an insurer under this section that provides for an overall