Rhode Island 2022 Regular Session

Rhode Island House Bill H7264

Introduced
2/2/22  

Caption

Casualty Insurance Rating

Impact

This legislation is set to take effect on January 1, 2023, and applies to all policies issued or renewed following this date. By enforcing these restrictions, the bill seeks to reduce unfair financial burdens on individuals from certain demographic groups and promote fairness in insurance practices. It has garnered support for its potential to protect consumers from discrimination while requiring insurance companies to operate under a more standardized pricing model which aligns with driving behavior rather than personal characteristics.

Summary

House Bill H7264 aims to reform the way automobile insurance rates are established in the state of Rhode Island. The bill prohibits insurance companies from using factors such as education level, race, ethnicity, occupation, income, gender, or geographic location to determine insurance premiums, thus making the rating process more equitable. It mandates that the driving record of the individual be the primary consideration in establishing rates or deciding eligibility for coverage, which will limit previous discriminatory practices in rate setting.

Contention

Despite its supportive framework, the bill has faced criticism from within the insurance industry, suggesting that the removal of certain criteria could impact the actuarial accuracy of risk assessments. Insurers express concerns that relying solely on driving records may not provide a complete picture of risk factors associated with coverage. Additionally, industry stakeholders fear that this could lead to increased premiums for low-risk drivers as insurers adjust their pricing models to account for the restrictions placed by this legislation. Legislative discussions have highlighted a divide between consumer protection advocates and insurance industry representatives over the potential economic ramifications of H7264.

Companion Bills

No companion bills found.

Previously Filed As

RI H5659

Casualty Insurance Rating

RI S0755

Casualty Insurance Rating

RI H5336

Casualty Insurance Rating

RI H7780

Casualty Insurance Rating

RI S2973

Casualty Insurance Rating

RI S2126

Casualty Insurance Rating

RI H5337

Casualty Insurance Rating

RI H7288

Prohibits auto insurance companies from using certain race and geographical locations criteria when determining insurance rates.

RI H5416

Prohibits auto insurance companies from using certain race and geographical locations criteria when determining insurance rates.

RI S0084

Prohibits casualty insurers from assessing any premium surcharge or penalty against an insured solely for inquiring about the terms of the insured's policy.

Similar Bills

NJ A1742

"Peer-to-Peer Car Sharing Act".

NJ S959

Authorizes purchaser of automobile by private sale to operate automobile for three-day period following purchase without permanent registration or transfer of title.

NJ A420

Authorizes purchaser of automobile by private sale to operate automobile for three-day period following purchase without permanent registration or transfer of title.

NJ A3181

Authorizes purchaser of automobile by private sale to operate automobile for three-day period following purchase without permanent registration or transfer of title.

NJ S917

Authorizes purchaser of automobile by private sale to operate automobile for three-day period following purchase without permanent registration or transfer of title.

NJ S3221

Establishes "Automobile Accident Injury Fund."

NJ A4788

Establishes "Automobile Accident Injury Fund."

NJ A2012

Establishes "Automobile Accident Injury Fund."