Chapter 103


Enacted 06/22/11





     Introduced By: Senator Roger Picard

     Date Introduced: March 10, 2011


It is enacted by the General Assembly as follows:


     SECTION 1. Sections 27-29-17 and 27-29-17.3 of the General Laws in Chapter 27-29

entitled "Unfair Competition and Practices" are hereby amended to read as follows:


     27-29-17. Application. -- Sections 27-29-17 -- 27-29-17.4 shall apply to commercial

property insurance policies, commercial liability insurance policies, other than aviation and

employers' liability insurance policies, and commercial package multi-peril policies, commercial

excess or umbrella policies and commercial auto policies. These sections shall not apply to

reinsurance, residual market risks, aviation insurance, workers' compensation and employer’s

liability insurance, multi-state location risks, or policies subject to retrospective rating plans, or

excess or umbrella policies.


     27-29-17.3. Notice of premium or coverage changes. -- (a) An insurer shall provide to

the first-named insured at the mailing address shown on the policy, and to the insurance producer

of record, written notice of any premium increase in excess of ten percent (10%) and shall also

provide the exact renewal premium, change in deductible, reduction in limits or coverage changes

at least sixty (60) days prior to the expiration date of the policy unless the premium increase is the

result of an audit or the increase is the result of an increase in exposure at the request of the

insured. Not less than sixty (60) days written notice, as provided herein, shall be required for any

coverage elimination, reduction, diminution or increased deductible not at the request of the

insured and in this case the notice shall itemize and describe the coverage changes and shall be

separate from the renewal policy. If the insurer fails to provide such notice, the coverage provided

to the named insured shall remain in effect until notice is provided or until the effective date of

replacement coverage obtained by the named insured, whichever occurs first. For the purposes of

this section, notice is considered given sixty (60) days following date of giving of the notice. If

the named insured elects not to renew, any earned premium for the period of extension of the

terminated policy shall be calculated pro-rata at the lower of the current or previous year's rate. If

the insured accepts the renewal, the premium increase, if any, and other changes shall be effective

the day following the prior policy's expiration or anniversary date.

      (b) This section shall not apply to:

      (1) Changes in a rate or plan filed and approved by the commissioner and applicable to

an entire class of business.

      (2)(1) Changes changes based upon the altered nature or extent of the risk insured.

      (3) Changes in policy forms filed and approved with the commissioner and applicable to

an entire class of business.

     (c) For the purposes of this section, notice to the insurance producer of record shall not

apply to an insurance producer of record who:

     (1) Is an employee of the insurer; or

     (2) Is a non-employee exclusive agent of the insurer; provided, however, notice, as

required by this section, shall in all applicable cases, be provided to the named insured.


     SECTION 2. Chapter 27-29 of the General Laws entitled "Unfair Competition and

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


     27-29-17.5. Insured's right to loss information. -- (a) Upon written request by the first

named insured or such insured's authorized agent or broker, the insurer shall provide the

following loss information, for the period of time coverage has been provided by the insurer or

for five (5) years whichever is less, within fourteen (14) days of such request:

     (1) Information on closed claims, including date and descriptions of occurrence, and


     (2) Information on open claims, including date and description of occurrence, and

amounts of any payments or loss reserves; and

     (3) Information on notice of any occurrences, including date and description of


     (b) Nothing in this section shall affect the confidentiality requirements pursuant to

chapter 5-37.3 and to insurance regulations 99 (privacy of consumer financial information) and

100 (privacy of consumer health information) as promulgated by the department of business


     (c) This section shall not apply to life, accident, health, personal automobile,

homeowner's, dwelling and boat, personal recreational vehicles, personal excess liability,

personal umbrella, or reinsurance policies, nor shall it apply to loss reserves or notices of

occurrences for the following policies:

     (1) Medical malpractice and medical professional liability insurance;

     (2) Liability insurance for clinical trials, kidnap and ransom; and

     (3) Commercial property for highly protected risks as defined in paragraph 27-65-1(a)(4)(i);

provided, however, for commercial property for highly protected risk policies as herein

defined, all loss reserves or notices of occurrences shall be required in the event of the non-

renewal or cancellation of the insured.


     SECTION 3. This act shall take effect on January 1, 2012.



LC01685/SUB A