Rhode Island 2023 Regular Session

Rhode Island House Bill H5336 Compare Versions

Only one version of the bill is available at this time.

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5	5	2023 -- H 5336
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7	7	LC001027
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9	9	S TATE OF RHODE IS LAND
10	10	IN GENERAL ASSEMBLY
11	11	JANUARY SESSION, A.D. 2023
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13	13
14	14	A N A C T
15	15	RELATING TO INSURANCE - CASUALTY INSURANCE RATING
16	16	Introduced By: Representatives Sanchez, Fellela, McEntee, and Kislak
17	17	Date Introduced: February 03, 2023
18	18	Referred To: House Corporations
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21	21	It is enacted by the General Assembly as follows:
22	22	SECTION 1. Section 27-9-4 of the General Laws in Chapter 27-9 entitled "Casualty 1
23	23	Insurance Rating" is hereby amended to read as follows: 2
24	24	27-9-4. Considerations in making of rates — Cancellation of policy. 3
25	25	(a) All rates shall be made in accordance with the following provisions: 4
26	26	(1)(i) Due consideration shall be given to past and prospective loss experience within and 5
27	27	outside this state, to catastrophe hazards, if any, to a reasonable margin for underwriting profit and 6
28	28	contingencies, to dividends, savings, or unabsorbed premium deposits allowed or returned by 7
29	29	insurers to their policyholders, members, or subscribers, to past and prospective expenses both 8
30	30	countrywide and those specially applicable to this state, and to all other relevant factors within and 9
31	31	outside this state; provided, that no consideration shall be given to: 10
32	32	(A) Any loss or incident involving a bus driver, while in the course of his or her 11
33	33	employment for the Rhode Island public transit authority or private or municipal school bus 12
34	34	companies, in establishing or maintaining that driver’s rate respecting the operation of a personal 13
35	35	motor vehicle or vehicles; 14
36	36	(B) Any loss or incident involving a law enforcement officer, while in the course of his or 15
37	37	her employment for the state, city, town police departments, or federal law enforcement agency, in 16
38	38	establishing or maintaining that driver’s rate respecting the operation of a personal motor vehicle 17
39	39	or vehicles; and 18
40	40	(C) Any loss or incident involving a commercial vehicle driver, while in the course of his 19
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44	44	or her employment, in establishing or maintaining that driver’s rate respecting the operation of a 1
45	45	personal motor vehicle(s); 2
46	46	(ii) It shall be the responsibility of a commercial vehicle driver to provide his or her 3
47	47	insurance company with proof that the loss or incident took place in the course of employment 4
48	48	while operating a commercial vehicle. For the purposes of this section, a “commercial vehicle” 5
49	49	shall be a motor vehicle with a gross weight in excess of ten thousand pounds (10,000 lbs.) or a 6
50	50	motor vehicle used for public livery; 7
51	51	(2) The systems of expense provisions included in the rates for use by any insurer or group 8
52	52	of insurers may differ from those of other insurers or groups of insurers to reflect the requirements 9
53	53	of the operating methods of any insurer or group with respect to any kind of insurance, or with 10
54	54	respect to any subdivision or combination of insurance for which subdivision or combination 11
55	55	separate expense provisions are applicable; 12
56	56	(3) Risks may be grouped by classifications for the establishment of rates and minimum 13
57	57	premiums; 14
58	58	(4) Rates shall not be excessive, inadequate, or unfairly discriminatory; and 15
59	59	(5) In establishing or maintaining an insured’s rate or classification respecting the operation 16
60	60	of a personal motor vehicle, any insured sixty-five (65) years of age or older, who meets the criteria 17
61	61	set forth in this section and has not had any chargeable accidents or moving violations within three 18
62	62	(3) years preceding the establishment of the rate of insurance or classification, shall not be penalized 19
63	63	solely by reason of his or her age. 20
64	64	(b)(1) No insurance company organized to do business within this state shall make any 21
65	65	distinction or discrimination as to the premiums or rates charged for automobile insurance policies, 22
66	66	and determination of the rate class of the individual, on the basis of education level, race, ethnicity, 23
67	67	disability, occupation, income, gender, nor insert in the policy any condition nor make any 24
68	68	stipulation where the person insured shall bind himself or herself, his or her heirs, executors, 25
69	69	administrators and assigners, to accept any less sum than the full value or amount of the policy in 26
70	70	case of a claim accruing on the policy by reason of the claim of the person insured, other than those 27
71	71	stipulations or conditions as are imposed upon all persons in similar cases, and any stipulation or 28
72	72	condition made in this manner shall be void. 29
73	73	(2) The insurance company shall solely rely on the driving record of the individual with 30
74	74	regard to the premiums or rates charged for automobile insurance policies and the acceptance or 31
75	75	rejection of the application of the individual for insurance coverage. 32
76	76	(b)(c) No insurance company shall fail to renew a private passenger automobile policy 33
77	77	because of a loss of occurrence only, unless a chargeable loss occurrence of three thousand dollars 34
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81	81	($3,000) or more than two (2) nonchargeable loss occurrences, involving the insured, have taken 1
82	82	place within the annual policy year. 2
83	83	(c)(d)(1) No insurance company shall fail to renew a private passenger automobile policy 3
84	84	solely because the insured has attained the age of sixty-five (65) years or older; 4
85	85	(2) Whenever the commissioner of insurance shall have reason to believe that any 5
86	86	insurance company has refused to renew a private passenger automobile policy solely because the 6
87	87	applicant has reached the age of sixty-five (65) years or older, the commissioner shall notify the 7
88	88	company that it may be in violation of this section and in his or her discretion he or she may require 8
89	89	a hearing to determine whether or not the company has actually been engaged in the practice stated 9
90	90	in this subsection. Any hearing held under this section shall in all respects comply with the hearing 10
91	91	procedure provided in the Administrative Procedures Act, chapter 35 of title 42; 11
92	92	(3) If after the hearing the commissioner shall determine that the company has engaged in 12
93	93	the practice of systematically failing to renew private passenger automobile policies because of the 13
94	94	advanced age of the insured, he or she shall reduce his or her findings to writing and shall issue and 14
95	95	cause to be served upon the company an order to cease and desist from engaging in those practices. 15
96	96	After the issuance of the cease and desist order, if the commissioner finds that the company has 16
97	97	continued to engage in those practices, he or she shall impose upon the company a fine not to 17
98	98	exceed the amount of one thousand dollars ($1,000) for each separate violation. 18
99	99	(4) Any company aggrieved by any order or decision of the commissioner of insurance 19
100	100	may appeal the order and decision to the superior court of Providence in accordance with the 20
101	101	Administrative Procedures Act, chapter 35 of title 42. 21
102	102	(d)(e) No insurance group, carrier, or company in establishing any premium surcharge or 22
103	103	penalty relative to a specific motor vehicle policy, shall consider any accident or any claim where 23
104	104	any insured covered by that policy is fifty percent (50%) or less at fault. 24
105	105	(e)(f) No insurance group, carrier, or company shall assess any premium surcharge against 25
106	106	any insured covered by a motor vehicle policy where a property damage claim payment is less than 26
107	107	three thousand dollars ($3,000). 27
108	108	(f)(g) No insurance group, carrier, or company shall refuse to issue motor vehicle liability 28
109	109	insurance, impose a surcharge, or otherwise increase the rate for a motor vehicle policy solely 29
110	110	because the applicant is a volunteer driver. Volunteer driver is defined as a person who provides 30
111	111	services without compensation to a nonprofit agency or charitable organization. 31
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115	115	SECTION 2. This act shall take effect on January 1, 2024 and apply prospectively to any 1
116	116	policy for automobile insurance coverage issued or renewed on or after January 1, 2024. 2
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123	123	EXPLANATION
124	124	BY THE LEGISLATIVE COUNCIL
125	125	OF
126	126	A N A C T
127	127	RELATING TO INSURANCE - CASUALTY INSURANCE R ATING
128	128	***
129	129	This act would prohibit automobile insurance companies from utilizing education level, 1
130	130	race, ethnicity, disability, occupation, income or gender to determine automobile insurance rates, 2
131	131	premiums, and/or eligibility for coverage. This act would also restrict the insurance companies to 3
132	132	rely solely on the driving record of the individual with regard to premiums or rates changed for 4
133	133	insurance policies or rejection of the individual's application for coverage. 5
134	134	This act would take effect on January 1, 2024 and apply prospectively to any policy for 6
135	135	automobile insurance coverage issued or renewed on or after January 1, 2024. 7
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