2022 -- H 7160

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LC003235

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2022

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A N   A C T

RELATING TO INSURANCE -- CASUALTY INSURANCE GENERALLY

     Introduced By: Representative Joseph J. Solomon

     Date Introduced: January 26, 2022

     Referred To: House Corporations

     It is enacted by the General Assembly as follows:

     SECTION 1. Chapter 27-8 of the General Laws entitled "Casualty Insurance Generally" is

hereby amended by adding thereto the following section:

     27-8-8.1. Intentional loss exclusion limitation.

     (a) Commencing on or after January 1, 2023, any property and/or casualty insurance policy,

as well as property loss insurance coverage, offered, renewed, issued or issued for delivery to cover

real or personal property of a resident of this state or for property located within this state shall not

void or exclude coverage to an innocent co-insured for a loss intentionally and wrongfully caused

by another co-insured.

     (b) Payment to the innocent co-insured pursuant to the provisions of subsection (a) of this

section may be limited to his or her ownership interest in the property as reduced by any payment

to a mortgagor or any other holder of a secured interest.

     (c) As used in this section, "innocent co-insured" means a person who is a first-party or

named insured under a policy of property and/or casualty insurance and who did not have

knowledge of, cooperate in, or intentionally contribute to a real or personal property loss that was

intentionally and wrongfully caused or arranged by another individual who is also insured under

the policy of insurance.

     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO INSURANCE -- CASUALTY INSURANCE GENERALLY

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     This act would provide that property and casualty insurance policies issued or renewed on

or after January 1, 2023, shall not void or exclude coverage to an innocent co-insured for a loss

intentionally and wrongfully caused by another co-insured. Payment to the innocent co-insured

would be limited to his or her ownership interest in the real or personal property damaged or

destroyed.

     This act would take effect upon passage.

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