Rhode Island House Bill H6315

Rhode Island 2025 Regular Session

• Introduced: 5/9/25
• Refer: 5/9/25
• Report Pass: 5/22/25
• Engrossed: 5/27/25
• Enrolled: 6/17/25
• Passed: 6/18/25

Caption

Repeals § 27-11.1-3 to eliminate the ten percent (10%) limitation on Schedule BA assets.

Impact

The elimination of the ten percent cap is intended to empower domestic insurance companies to diversify their investment portfolios and potentially increase their profitability. This change could encourage investments in a broader range of asset classes, potentially enhancing the financial stability and growth prospects of these companies. However, it may also raise concerns about the risks associated with less restricted investments in various sectors, including oil and gas production and timber, which are among the types of assets that could be included under the proposed regulations.

Summary

House Bill 6315 aims to modify regulations concerning the investment capabilities of domestic insurance companies in the state. Specifically, it seeks to repeal Section 27-11.1-3 of the General Laws, which currently imposes a ten percent limitation on the aggregate investments in assets listed in Schedule BA of a domestic insurance company's annual report. By removing this restriction, the bill aims to provide greater flexibility for these companies in how they manage and invest their admitted assets.

Contention

While proponents argue that Bill H6315 allows for more robust investment strategies that can benefit the overall economy, critics may express concerns regarding inadequate oversight and potential conflicts arising from investments that exceed previous limitations. The discussion surrounding the bill highlights the ongoing tension between the need for economic flexibility for businesses and the necessity for regulatory measures that protect consumers and ensure the stability of the insurance market.