2007 -- H 6522 SUBSTITUTE A
A N A C T
RELATING TO INSURANCE -- RATE SETTING
Introduced By: Representatives Lewiss, Walsh, Kennedy, Lally, and Crowley
Date Introduced: June 13, 2007
It is enacted by the General Assembly as follows:
SECTION 1. Section 27-44-6 of the General Laws in Chapter 27-44 entitled "Casualty,
Liability and Fire and Marine Insurance Rating" is hereby amended to read as follows:
27-44-6. Filing of rates and other rating information. -- (a) Filings as to competitive
markets; file and use. - In a competitive market, every insurer shall file with the director all rates
and supplementary rate information to be used in this state. At the time the rates are filed, the
filing shall state the specific model(s) used (catastrophic risk planning), and explain the manner in
which each model was used to determine the filed rate. The rates and supplementary rate
information shall be filed at least thirty (30) days prior to the proposed effective date. At the end
of that time, the rates may be used if no disapproval order or request for supporting information
has been issued by the director. If the director finds that an insurer's rates require closer review
because of an insurer's financial condition, or upon any other grounds as the director may
consider harmful to the public interest including, but not limited to, excessiveness, inadequacy, or
unfair discrimination, the director may request supporting information as needed. If the director
requests the further information, the rates may not be made effective until thirty (30) days after
the information has been received by the director.
(b) Filings as to noncompetitive markets. - Nothing contained in this chapter shall be
construed to abrogate or supersede any statute or regulation governing either classes of business
identified in section 27-44-3, or deemed noncompetitive pursuant to the provisions of this
chapter. Those classes of business and noncompetitive markets shall have rates established
pursuant to the standards and procedures applicable under chapters 6, 7.1, 9, 19, and 20 of this
title, and chapter 62 of title 42.
(c) Requirement of director. - Rates shall be filed in the form and manner prescribed by
(d) Rating organization. - Any insurer may discharge its obligation under this section by
giving notice to the director that it uses rates and supplementary rate information prepared and
filed by a designated rating organization of which it is a member or subscriber. The insurer's rates
and supplementary rate information shall be those filed by the rating organization, including any
amendments, subject to modifications filed by the insurer.
(e) Consent to rate. - Upon the written consent of the insured, stating the reasons for
consent and filed with the director, a rate in excess of that provided by an otherwise applicable
filing may be used on any specific risk. A rate greater than that applicable to the insured under a
residual market mechanism may not be used unless approved by the director.
(f) Filings open to inspection. - All rates, supplementary rate information, and any
supporting information for rates filed under this act shall, as soon as filed, shall be open to public
inspection at any reasonable time. Copies may be obtained by any person on request and upon
payment of a reasonable charge.
SECTION 2. This act shall take effect upon passage.