Rhode Island 2023 Regular Session

Rhode Island House Bill H5416 Compare Versions

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

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5	5	2023 -- H 5416
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7	7	LC001414
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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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14	14	A N A C T
15	15	RELATING TO PROPERTY -- CONDOMINIUM OWNERSHIP
16	16	Introduced By: Representative Patricia A. Serpa
17	17	Date Introduced: February 08, 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 34-36-29 of the General Laws in Chapter 34-36 entitled 1
23	23	"Condominium Ownership" is hereby amended to read as follows: 2
24	24	34-36-29. Insurance. 3
25	25	(a) The manager, management committee, or association of unit owners, if required by the 4
26	26	declaration, bylaws, or by a majority of the unit owners, or at the request of a mortgagee having a 5
27	27	first mortgage of record covering a unit, shall have the authority to, and shall, obtain insurance for 6
28	28	the property against loss or damage by fire and other hazards under the terms and for amounts as 7
29	29	shall be required or requested. Insurance coverage shall be written on the property in the name of 8
30	30	the manager, management committee, or association of unit owners, as trustee for each of the unit 9
31	31	owners in the percentages established in the declaration. Premiums on insurance shall be common 10
32	32	expenses. Provision for insurance shall be without prejudice to the right of each unit owner to insure 11
33	33	his or her own unit for his or her benefit. Provided, however, a unit’s owners insurance policy shall 12
34	34	become the primary insurance policy with respect to any loss covered by the association’s policy 13
35	35	but not payable under the association’s policy because of the application of the deductible. 14
36	36	(b) In the event a unit owner sustains damage to their unit as a result of an event that is 15
37	37	covered under the insurance coverage purchased in accordance with subsection (a), then, upon 16
38	38	written request to the condominium association, the unit owner shall be entitled to a written copy 17
39	39	from the condominium association of the insurance company damage appraisal, or any damage 18
40	40	appraisal in regard to damage to the owner’s unit, within fourteen (14) calendar days of the date of 19
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43	43	LC001414 - Page 2 of 3
44	44	the unit owner’s request, or within fourteen (14) days of the association’s receipt of the damage 1
45	45	appraisal, whichever is later. If coverage for the damage to a unit is denied for any reason, or is 2
46	46	deemed to be valued below the policy deductible, then the unit owner shall also be entitled to 3
47	47	receive, from the association, a copy of the letter detailing the determination. 4
48	48	SECTION 2. This act shall take effect upon passage. 5
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55	55	EXPLANATION
56	56	BY THE LEGISLATIVE COUNCIL
57	57	OF
58	58	A N A C T
59	59	RELATING TO PROPERTY -- CONDOMINIUM OWNERSHI P
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61	61	This act would provide that a condominium unit owners policy would be the primary 1
62	62	insurance policy with respect to any loss covered by the association’s policy but not payable under 2
63	63	the association’s policy because of the application of the deductible. 3
64	64	This act would take effect upon passage. 4
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66	66	LC001414
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