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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 -- CASUALTY INSURANCE RATING |
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| 16 | 16 | | Introduced By: Representatives Handy, Serpa, Cortvriend, Messier, Fenton-Fung, |
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| 17 | 17 | | Solomon, Fogarty, Caldwell, and Chippendale |
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| 18 | 18 | | Date Introduced: February 03, 2023 |
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| 19 | 19 | | Referred To: House Corporations |
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| 20 | 20 | | |
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| 21 | 21 | | |
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| 22 | 22 | | It is enacted by the General Assembly as follows: |
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| 23 | 23 | | SECTION 1. Section 27-9-4 of the General Laws in Chapter 27-9 entitled "Casualty 1 |
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| 24 | 24 | | Insurance Rating" is hereby amended to read as follows: 2 |
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| 25 | 25 | | 27-9-4. Considerations in making of rates — Cancellation of policy. 3 |
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| 26 | 26 | | (a) All rates shall be made in accordance with the following provisions: 4 |
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| 27 | 27 | | (1)(i) Due consideration shall be given to past and prospective loss experience within and 5 |
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| 28 | 28 | | outside this state, to catastrophe hazards, if any, to a reasonable margin for underwriting profit and 6 |
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| 29 | 29 | | contingencies, to dividends, savings, or unabsorbed premium deposits allowed or returned by 7 |
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| 30 | 30 | | insurers to their policyholders, members, or subscribers, to past and prospective expenses both 8 |
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| 31 | 31 | | countrywide and those specially applicable to this state, and to all other relevant factors within and 9 |
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| 32 | 32 | | outside this state; provided, that no consideration shall be given to: 10 |
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| 33 | 33 | | (A) Any loss or incident involving a bus driver, while in the course of his or her 11 |
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| 34 | 34 | | employment for the Rhode Island public transit authority or private or municipal school bus 12 |
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| 35 | 35 | | companies, in establishing or maintaining that driver’s rate respecting the operation of a personal 13 |
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| 36 | 36 | | motor vehicle or vehicles; 14 |
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| 37 | 37 | | (B) Any loss or incident involving a law enforcement officer, while in the course of his or 15 |
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| 38 | 38 | | her employment for the state, city, town police departments, or federal law enforcement agency, in 16 |
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| 39 | 39 | | establishing or maintaining that driver’s rate respecting the operation of a personal motor vehicle 17 |
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| 40 | 40 | | or vehicles; and 18 |
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| 41 | 41 | | (C) Any loss or incident involving a commercial vehicle driver, while in the course of his 19 |
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| 42 | 42 | | |
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| 43 | 43 | | |
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| 45 | 45 | | or her employment, in establishing or maintaining that driver’s rate respecting the operation of a 1 |
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| 46 | 46 | | personal motor vehicle(s); 2 |
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| 47 | 47 | | (ii) It shall be the responsibility of a commercial vehicle driver to provide his or her 3 |
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| 48 | 48 | | insurance company with proof that the loss or incident took place in the course of employment 4 |
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| 49 | 49 | | while operating a commercial vehicle. For the purposes of this section, a “commercial vehicle” 5 |
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| 50 | 50 | | shall be a motor vehicle with a gross weight in excess of ten thousand pounds (10,000 lbs.) or a 6 |
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| 51 | 51 | | motor vehicle used for public livery; 7 |
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| 52 | 52 | | (2) The systems of expense provisions included in the rates for use by any insurer or group 8 |
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| 53 | 53 | | of insurers may differ from those of other insurers or groups of insurers to reflect the requirements 9 |
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| 54 | 54 | | of the operating methods of any insurer or group with respect to any kind of insurance, or with 10 |
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| 55 | 55 | | respect to any subdivision or combination of insurance for which subdivision or combination 11 |
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| 56 | 56 | | separate expense provisions are applicable; 12 |
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| 57 | 57 | | (3) Risks may be grouped by classifications for the establishment of rates and minimum 13 |
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| 58 | 58 | | premiums; 14 |
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| 59 | 59 | | (4) Rates shall not be excessive, inadequate, or unfairly discriminatory; and 15 |
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| 63 | 63 | | (5)(6) In establishing or maintaining an insured’s rate or classification respecting the 19 |
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| 64 | 64 | | operation of a personal motor vehicle, any insured sixty-five (65) years of age or older, who meets 20 |
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| 65 | 65 | | the criteria set forth in this section and has not had any chargeable accidents or moving violations 21 |
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| 66 | 66 | | within three (3) years preceding the establishment of the rate of insurance or classification, shall 22 |
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| 67 | 67 | | not be penalized solely by reason of his or her age. 23 |
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| 68 | 68 | | (b) No insurance company shall fail to renew a private passenger automobile policy 24 |
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| 69 | 69 | | because of a loss of occurrence only, unless a chargeable loss occurrence of three thousand dollars 25 |
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| 70 | 70 | | ($3,000) or more than two (2) nonchargeable loss occurrences, involving the insured, have taken 26 |
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| 71 | 71 | | place within the annual policy year. 27 |
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| 72 | 72 | | (c)(1) No insurance company shall fail to renew a private passenger automobile policy 28 |
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| 73 | 73 | | solely because the insured has attained the age of sixty-five (65) years or older; 29 |
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| 74 | 74 | | (2) Whenever the commissioner of insurance shall have reason to believe that any 30 |
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| 75 | 75 | | insurance company has refused to renew a private passenger automobile policy solely because the 31 |
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| 76 | 76 | | applicant has reached the age of sixty-five (65) years or older, the commissioner shall notify the 32 |
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| 77 | 77 | | company that it may be in violation of this section and in his or her discretion he or she may require 33 |
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| 78 | 78 | | a hearing to determine whether or not the company has actually been engaged in the practice stated 34 |
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| 79 | 79 | | |
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| 80 | 80 | | |
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| 82 | 82 | | in this subsection. Any hearing held under this section shall in all respects comply with the hearing 1 |
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| 83 | 83 | | procedure provided in the Administrative Procedures Act, chapter 35 of title 42; 2 |
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| 84 | 84 | | (3) If after the hearing the commissioner shall determine that the company has engaged in 3 |
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| 85 | 85 | | the practice of systematically failing to renew private passenger automobile policies because of the 4 |
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| 86 | 86 | | advanced age of the insured, he or she shall reduce his or her findings to writing and shall issue and 5 |
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| 87 | 87 | | cause to be served upon the company an order to cease and desist from engaging in those practices. 6 |
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| 88 | 88 | | After the issuance of the cease and desist order, if the commissioner finds that the company has 7 |
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| 89 | 89 | | continued to engage in those practices, he or she shall impose upon the company a fine not to 8 |
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| 90 | 90 | | exceed the amount of one thousand dollars ($1,000) for each separate violation. 9 |
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| 91 | 91 | | (4) Any company aggrieved by any order or decision of the commissioner of insurance 10 |
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| 92 | 92 | | may appeal the order and decision to the superior court of Providence in accordance with the 11 |
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| 93 | 93 | | Administrative Procedures Act, chapter 35 of title 42. 12 |
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| 94 | 94 | | (d) No insurance group, carrier, or company in establishing any premium surcharge or 13 |
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| 95 | 95 | | penalty relative to a specific motor vehicle policy, shall consider any accident or any claim where 14 |
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| 96 | 96 | | any insured covered by that policy is fifty percent (50%) or less at fault. 15 |
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| 97 | 97 | | (e) No insurance group, carrier, or company shall assess any premium surcharge against 16 |
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| 98 | 98 | | any insured covered by a motor vehicle policy where a property damage claim payment is less than 17 |
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| 99 | 99 | | three thousand dollars ($3,000). 18 |
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| 100 | 100 | | (f) No insurance group, carrier, or company shall refuse to issue motor vehicle liability 19 |
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| 101 | 101 | | insurance, impose a surcharge, or otherwise increase the rate for a motor vehicle policy solely 20 |
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| 102 | 102 | | because the applicant is a volunteer driver. Volunteer driver is defined as a person who provides 21 |
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| 103 | 103 | | services without compensation to a nonprofit agency or charitable organization. 22 |
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| 104 | 104 | | SECTION 2. This act shall take effect on January 1, 2024. 23 |
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| 105 | 105 | | ======== |
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