Chapter 183 |
2019 -- H 5458 SUBSTITUTE A Enacted 07/15/2019 |
A N A C T |
RELATING TO INSURANCE - CASUALTY INSURANCE RATING |
Introduced By: Representatives Kennedy, Ucci, Azzinaro, Marshall, and Johnston |
Date Introduced: February 14, 2019 |
It is enacted by the General Assembly as follows: |
SECTION 1. Section 27-9-4 of the General Laws in Chapter 27-9 entitled "Casualty |
Insurance Rating" is hereby amended to read as follows: |
27-9-4. Considerations in making of rates -- Cancellation of policy. |
(a) All rates shall be made in accordance with the following provisions: |
(1)(i) Due consideration shall be given to past and prospective loss experience within and |
outside this state, to catastrophe hazards, if any, to a reasonable margin for underwriting profit |
and contingencies, to dividends, savings, or unabsorbed premium deposits allowed or returned by |
insurers to their policyholders, members, or subscribers, to past and prospective expenses both |
countrywide and those specially applicable to this state, and to all other relevant factors within |
and outside this state; provided, that no consideration shall be given to: |
(A) Any loss or incident involving a bus driver, while in the course of his or her |
employment for the Rhode Island public transit authority or private or municipal school bus |
companies, in establishing or maintaining that driver's rate respecting the operation of a personal |
motor vehicle or vehicles; |
(B) Any loss or incident involving a law enforcement officer, while in the course of his or |
her employment for the state, city, town police departments, or federal law enforcement agency, |
in establishing or maintaining that driver's rate respecting the operation of a personal motor |
vehicle or vehicles; and |
(C) Any loss or incident involving a commercial vehicle driver, while in the course of his |
or her employment, in establishing or maintaining that driver's rate respecting the operation of a |
personal motor vehicle(s); |
(ii) It shall be the responsibility of a commercial vehicle driver to provide his or her |
insurance company with proof that the loss or incident took place in the course of employment |
while operating a commercial vehicle. For the purposes of this section, a "commercial vehicle" |
shall be a motor vehicle with a gross weight in excess of ten thousand (10,000) pounds |
(10,000 lbs) or a motor vehicle used for public livery; |
(2) The systems of expense provisions included in the rates for use by any insurer or |
group of insurers may differ from those of other insurers or groups of insurers to reflect the |
requirements of the operating methods of any insurer or group with respect to any kind of |
insurance, or with respect to any subdivision or combination of insurance for which subdivision |
or combination separate expense provisions are applicable; |
(3) Risks may be grouped by classifications for the establishment of rates and minimum |
premiums; |
(4) Rates shall not be excessive, inadequate, or unfairly discriminatory; and |
(5) In establishing or maintaining an insured's rate or classification respecting the |
operation of a personal motor vehicle, any insured sixty-five (65) years of age or older, who |
meets the criteria set forth in this section and has not had any chargeable accidents or moving |
violations within three (3) years preceding the establishment of the rate of insurance or |
classification, shall not be penalized solely by reason of his or her age. |
(b) No insurance company shall fail to renew a private passenger automobile policy |
because of a loss of occurrence only, unless a chargeable loss occurrence of one thousand five |
hundred dollars ($1,500) three thousand dollars ($3,000) or more than two (2) nonchargeable loss |
occurrences, involving the insured, have taken place within the annual policy year. |
(c)(1) No insurance company shall fail to renew a private passenger automobile policy |
solely because the insured has attained the age of sixty-five (65) years or older; |
(2) Whenever the commissioner of insurance shall have reason to believe that any |
insurance company has refused to renew a private passenger automobile policy solely because the |
applicant has reached the age of sixty-five (65) years or older, the commissioner shall notify the |
company that it may be in violation of this section and in his or her discretion he or she may |
require a hearing to determine whether or not the company has actually been engaged in the |
practice stated in this subsection. Any hearing held under this section shall in all respects comply |
with the hearing procedure provided in the Administrative Procedures Act, chapter 35 of title 42; |
(3) If after the hearing the commissioner shall determine that the company has engaged in |
the practice of systematically failing to renew private passenger automobile policies because of |
the advanced age of the insured, he or she shall reduce his or her findings to writing and shall |
issue and cause to be served upon the company an order to cease and desist from engaging in |
those practices. After the issuance of the cease and desist order, if the commissioner finds that the |
company has continued to engage in those practices, he or she shall impose upon the company a |
fine not to exceed the amount of one thousand dollars ($1,000) for each separate violation. |
(4) Any company aggrieved by any order or decision of the commissioner of insurance |
may appeal the order and decision to the superior court of Providence in accordance with the |
Administrative Procedures Act, chapter 35 of title 42. |
(d) No insurance group, carrier, or company in establishing any premium surcharge or |
penalty relative to a specific motor vehicle policy, shall consider any accident or any claim where |
any insured covered by that policy is fifty percent (50%) or less at fault. |
(e) No insurance group, carrier, or company shall assess any premium surcharge against |
any insured covered by a motor vehicle policy where a property damage claim payment is less |
than one thousand five hundred dollars ($1,500) three thousand dollars ($3,000). |
(f) No insurance group, carrier, or company shall refuse to issue motor vehicle liability |
insurance, impose a surcharge, or otherwise increase the rate for a motor vehicle policy solely |
because the applicant is a volunteer driver. Volunteer driver is defined as a person who provides |
services without compensation to a nonprofit agency or charitable organization. |
SECTION 2. This act shall take effect on January 1, 2020. |
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LC001214/SUB A |
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