2022 -- H 7912

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LC005436

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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 -- LIABILITY INSURANCE

     

     Introduced By: Representative Jacquelyn M. Baginski

     Date Introduced: March 07, 2022

     Referred To: House Corporations

     It is enacted by the General Assembly as follows:

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     SECTION 1. Chapter 27-7 of the General Laws entitled "Liability Insurance" is hereby

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amended by adding thereto the following section:

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     27-7-1.1. Necrotizing policies prohibited.

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     Every policy written insuring against liability for property damage or personal injuries or

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both, and every policy written indemnifying any person by reason of that liability, other than the

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payment of compensation under chapters 29 — 38 of title 28, shall state a policy limit to be

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available in full for payment of such claims. No portion of the policy limit may be used for the

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payment of fees or costs to defend a claim.

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     SECTION 2. This act shall take effect upon passage.

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LC005436

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO INSURANCE -- LIABILITY INSURANCE

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     This act would require that insurance policies for property damage, personal injuries, and

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indemnification other than payment of compensation for workers compensation, state policy limits

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and no amount of the policy may be used to pay costs to defend a claim.

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     This act would take effect upon passage.

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LC005436

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