Rhode Island 2025 Regular Session

Rhode Island Senate Bill S0766 Compare Versions

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

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5	5	2025 -- S 0766
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7	7	LC001515
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9	9	S T A T E O F R H O D E I S L A N D
10	10	IN GENERAL ASSEMBLY
11	11	JANUARY SESSION, A.D. 2025
12	12	____________
13	13
14	14	A N A C T
15	15	RELATING TO INSURANCE -- CASUALTY INSURANCE RATING
16	16	Introduced By: Senator Frank A. Ciccone
17	17	Date Introduced: March 14, 2025
18	18	Referred To: Senate Commerce
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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 the bus driver’s 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 the 15
37	37	law enforcement officer’s employment for the state, city, town police departments, or federal law 16
38	38	enforcement agency, in establishing or maintaining that driver’s rate respecting the operation of a 17
39	39	personal motor vehicle or vehicles; and 18
40	40	(C) Any loss or incident involving a commercial vehicle driver, while in the course of the 19
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44	44	commercial vehicle driver’s employment, in establishing or maintaining that driver’s rate 1
45	45	respecting the operation of a personal motor vehicle(s); 2
46	46	(ii) It shall be the responsibility of a commercial vehicle driver to provide the commercial 3
47	47	vehicle driver’s insurance company with proof that the loss or incident took place in the course of 4
48	48	employment while operating a commercial vehicle. For the purposes of this section, a “commercial 5
49	49	vehicle” shall be a motor vehicle with a gross weight in excess of ten thousand pounds (10,000 lbs.) 6
50	50	or a 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; 15
59	59	(5) For any policy written, delivered, or renewed on or after January 1, 2025, in establishing 16
60	60	or maintaining an insured’s rate or classification respecting the operation of a personal motor 17
61	61	vehicle, widowed persons shall not be treated differently than persons in a marriage; and 18
62	62	(6) In establishing or maintaining an insured’s rate or classification respecting the operation 19
63	63	of a personal motor vehicle, any insured sixty-five (65) years of age or older, who meets the criteria 20
64	64	set forth in this section and has not had any chargeable accidents or moving violations within three 21
65	65	(3) years preceding the establishment of the rate of insurance or classification, shall not be penalized 22
66	66	solely by reason of his or her age. 23
67	67	(b) No insurance company shall fail to renew a private passenger automobile policy 24
68	68	because of a loss occurrence only, unless a chargeable loss occurrence of three thousand dollars 25
69	69	($3,000) or more than two (2) nonchargeable loss occurrences, involving the insured, have taken 26
70	70	place within the annual policy year. 27
71	71	(c)(1) No insurance company shall fail to renew a private passenger automobile policy 28
72	72	solely because the insured has attained the age of sixty-five (65) years or older; 29
73	73	(2) Whenever the commissioner of insurance shall have reason to believe that any 30
74	74	insurance company has refused to renew a private passenger automobile policy solely because the 31
75	75	applicant has reached the age of sixty-five (65) years or older, the commissioner shall notify the 32
76	76	company that it may be in violation of this section and in his or her discretion he or she may require 33
77	77	a hearing to determine whether or not the company has actually been engaged in the practice stated 34
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81	81	in this subsection. Any hearing held under this section shall in all respects comply with the hearing 1
82	82	procedure provided in the Administrative Procedures Act, chapter 35 of title 42; 2
83	83	(3) If after the hearing the commissioner shall determine that the company has engaged in 3
84	84	the practice of systematically failing to renew private passenger automobile policies because of the 4
85	85	advanced age of the insured, the commissioner shall reduce their findings to writing and shall issue 5
86	86	and cause to be served upon the company an order to cease and desist from engaging in those 6
87	87	practices. After the issuance of the cease and desist order, if the commissioner finds that the 7
88	88	company has continued to engage in those practices, the commissioner shall impose upon the 8
89	89	company a fine not to exceed the amount of one thousand dollars ($1,000) for each separate 9
90	90	violation. 10
91	91	(4) Any company aggrieved by any order or decision of the commissioner of insurance 11
92	92	may appeal the order and decision to the superior court of Providence in accordance with the 12
93	93	Administrative Procedures Act, chapter 35 of title 42. 13
94	94	(d) No insurance group, carrier, or company in establishing any premium surcharge or 14
95	95	penalty relative to a specific motor vehicle policy, shall consider any accident or any claim where 15
96	96	any insured covered by that policy is fifty percent (50%) or less at fault. 16
97	97	(e) No insurance group, carrier, or company shall assess any premium surcharge against 17
98	98	any insured covered by a motor vehicle policy where a property damage claim payment is less than 18
99	99	three thousand dollars ($3,000). 19
100	100	(f) No insurance group, carrier, or company shall refuse to issue motor vehicle liability 20
101	101	insurance, impose a surcharge, or otherwise increase the rate for a motor vehicle policy solely 21
102	102	because the applicant is a volunteer driver. Volunteer driver is defined as a person who provides 22
103	103	services without compensation to a nonprofit agency or charitable organization. 23
104	104	(g) No insurance group carrier or company issuing motor vehicle liability insurance shall 24
105	105	utilize the zip code of where an insured lives when calculating their policy premium. 25
106	106	SECTION 2. This act shall take effect upon passage. 26
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113	113	EXPLANATION
114	114	BY THE LEGISLATIVE COUNCIL
115	115	OF
116	116	A N A C T
117	117	RELATING TO INSURANCE -- CASUALTY INSURANCE RATING
118	118	***
119	119	This act would forbid a motor vehicle liability insurance carrier from considering the zip 1
120	120	code of where an insured lives for purposes of calculating their policy premium. 2
121	121	This act would take effect upon passage. 3
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