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| 5 | 5 | | 2023 -- H 5080 |
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| 6 | 6 | | ======== |
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| 7 | 7 | | LC000179 |
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| 8 | 8 | | ======== |
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| 9 | 9 | | S TATE OF RHODE IS LAND |
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| 10 | 10 | | IN GENERAL ASSEMBLY |
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| 11 | 11 | | JANUARY SESSION, A.D. 2023 |
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| 12 | 12 | | ____________ |
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| 13 | 13 | | |
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| 14 | 14 | | A N A C T |
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| 15 | 15 | | RELATING TO INSURANCE -- COVID-19 PANDEMIC INSURANCE R ECOVERY ACT |
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| 16 | 16 | | Introduced By: Representatives J Lombardi, Hull, and Felix |
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| 17 | 17 | | Date Introduced: January 12, 2023 |
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| 18 | 18 | | Referred To: House Corporations |
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| 19 | 19 | | |
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| 20 | 20 | | |
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| 21 | 21 | | It is enacted by the General Assembly as follows: |
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| 22 | 22 | | SECTION 1. Title 27 of the General Laws entitled "INSURANCE" is hereby amended by 1 |
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| 23 | 23 | | adding thereto the following chapter: 2 |
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| 24 | 24 | | CHAPTER 82 3 |
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| 25 | 25 | | COVID-19 PANDEMIC INSURANCE RECOVERY ACT 4 |
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| 26 | 26 | | 27-82-1. Statement of intent. 5 |
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| 27 | 27 | | The COVID-19 pandemic insurance recovery act provides a mechanism by which certain 6 |
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| 28 | 28 | | businesses that suffer losses due to an interruption as a result of the coronavirus pandemic may 7 |
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| 29 | 29 | | recover those losses from their insurer if they had a policy of business interruption insurance in 8 |
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| 30 | 30 | | force on March 9, 2020, the date on which the governor declared a public health emergency and 9 |
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| 31 | 31 | | state of emergency in executive order 20-2, or thereafter. 10 |
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| 32 | 32 | | 27-82-2. Businesses Eligible for Recovery. 11 |
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| 33 | 33 | | (a) The provisions of this chapter apply to all businesses covered by a business interruption 12 |
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| 34 | 34 | | insurance policy with less than one hundred (100) eligible employees in the state of Rhode Island. 13 |
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| 35 | 35 | | (b) "Eligible employee" is defined as a full-time employee who works a normal work week 14 |
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| 36 | 36 | | of twenty-five (25) or more hours. 15 |
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| 37 | 37 | | (c) Every policy of insurance for loss or damage to property, which includes the loss of use 16 |
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| 38 | 38 | | and occupancy and business interruption, in force on March 9, 2020, or thereafter, shall be 17 |
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| 39 | 39 | | construed to include among the covered perils under that policy, coverage for business interruption 18 |
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| 40 | 40 | | due to global virus transmission or pandemic, as provided in the governor’s executive order 20-2. 19 |
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| 41 | 41 | | |
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| 42 | 42 | | |
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| 43 | 43 | | LC000179 - Page 2 of 3 |
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| 44 | 44 | | The coverage provided would be subject to the limits under the policy and would indemnify the 1 |
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| 45 | 45 | | insured for losses incurred during the state of emergency. 2 |
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| 46 | 46 | | (d) An insurer which indemnifies an insured who has filed a claim pursuant to its provisions 3 |
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| 47 | 47 | | may apply to the department of business regulation insurance division for relief and reimbursement 4 |
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| 48 | 48 | | from funds collected and made available for this purpose 5 |
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| 49 | 49 | | (e) The insurance commissioner shall establish procedures for the submission and 6 |
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| 50 | 50 | | qualification of claims by insurers which are eligible for reimbursement, incorporating such 7 |
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| 51 | 51 | | standards as are necessary to protect against the submission of fraudulent claims by insureds, and 8 |
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| 52 | 52 | | appropriate safeguards for insurers to employ in the review and payment of such claims. 9 |
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| 53 | 53 | | (f) The insurance commissioner shall impose upon, distribute among, and collect from 10 |
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| 54 | 54 | | insurance companies, other than life and health insurance companies, the additional amounts as 11 |
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| 55 | 55 | | may be necessary to recover the amounts paid pursuant to this chapter. 12 |
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| 56 | 56 | | SECTION 2. This act shall take effect upon passage. 13 |
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| 57 | 57 | | ======== |
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| 58 | 58 | | LC000179 |
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| 59 | 59 | | ======== |
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| 60 | 60 | | |
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| 61 | 61 | | |
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| 62 | 62 | | LC000179 - Page 3 of 3 |
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| 63 | 63 | | EXPLANATION |
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| 64 | 64 | | BY THE LEGISLATIVE COUNCIL |
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| 65 | 65 | | OF |
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| 66 | 66 | | A N A C T |
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| 67 | 67 | | RELATING TO INSURANCE -- COVID-19 PANDEMIC INSURANCE RECOVERY A CT |
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| 68 | 68 | | *** |
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| 69 | 69 | | This act would allow businesses that had an insurance policy in place for business 1 |
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| 70 | 70 | | interruption as of March 9, 2020 or thereafter to recover from their insurance companies for a 2 |
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| 71 | 71 | | COVID-19 business impact. A business would be eligible for recovery if they have less than one 3 |
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| 72 | 72 | | hundred (100) employees in the state that work twenty-five (25) or more hours a week to qualify 4 |
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| 73 | 73 | | for recovery under this act. 5 |
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| 74 | 74 | | This act would take effect upon passage. 6 |
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| 75 | 75 | | ======== |
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| 76 | 76 | | LC000179 |
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| 77 | 77 | | ======== |
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