2013 -- H 5045

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LC00082

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2013

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A N A C T

RELATING TO INSURANCE - CASUALTY INSURANCE RATING

     Introduced By: Representatives Corvese, Edwards, Azzinaro, Malik, and Palangio

     Date Introduced: January 10, 2013

     Referred To: House Corporations

It is enacted by the General Assembly as follows:

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     SECTION 1. Section 27-9-10 of the General Laws in Chapter 27-9 entitled "Casualty

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Insurance Rating" is hereby amended to read as follows:

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     27-9-10. Waiting period -- Effective date of filings. – (a) Subject to the exception

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specified in section 27-9-9, each filing shall be on file for a waiting period of thirty (30) days

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before it becomes effective, which period may be extended by the commissioner for an additional

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period not to exceed thirty (30) days if the commissioner gives written notice within that waiting

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period to the insurer or rating organization which made the filing that he or she needs that

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additional time for the consideration of the filing. Upon written application by the insurer or

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rating organization, the commissioner may authorize a filing that the commissioner has reviewed

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to become effective before the expiration of the waiting period or any extension of it. A filing

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shall be deemed to meet the requirements of this chapter and to become effective unless

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disapproved as provided in this chapter by the commissioner within the waiting period or any

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extension of it; provided, that if the commissioner gives written notice to the insurer or rating

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organization within the waiting period or any extension that he or she will hold a hearing on the

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filing, the filing shall not become effective before or until the commissioner issues his or her

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decision. Upon giving that notice the commissioner shall also give public notice of the hearing by

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causing a notice to be published in a newspaper of general circulation in the state at least ten (10)

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days prior to the hearing stating the name of the insurer or rating organization which has made the

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filing and including a general description of the subject matter and sending a copy of that notice

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to the consumer protection unit of the department of attorney general. The commissioner shall

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hold a hearing on major filings. The hearing shall be held and a decision issued by the

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commissioner as soon as reasonably possible.

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     (b) Notwithstanding the provisions of subsection (a) of this section and the requirements

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of section 27-9-7.3, any filing made by an insurer or rating organization seeking a rate increase

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for automobile liability and/or physical damage insurance filed with the commissioner shall not

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take effect until approved by the commissioner after hearing thereon.

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     (c) No rate increase within the limitation specified in subsection (b) of this section may

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be implemented with regard to an individual existing policy, unless the increase is applied at the

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time of a renewal or conditional renewal of an existing policy and the insurer, at least ninety (90)

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days in advance of the end of the insured's policy period, mails or delivers to the named insured at

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the address shown in the policy, a written notice that clearly and conspicuously discloses its

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intention to increase the rate. A notice of renewal or conditional renewal that clearly and

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conspicuously discloses the renewal premium applicable to the policy shall be deemed to be in

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compliance with this subsection.

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     SECTION 2. This act shall take effect upon passage.

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LC00082

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO INSURANCE - CASUALTY INSURANCE RATING

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     This act would require that rate increases for automobile liability and/or physical damage

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insurance receive approval by the insurance commissioner after hearing thereon and that insurers

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give notice of the rate increase to their insureds at least ninety (90) days prior to the end of the

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insureds' policy period.

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     This act would take effect upon passage.

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LC00082

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