Chapter 334

2003 -- S 0280 SUBSTITUTE A

Enacted 07/17/03

AN ACT

RELATING TO UNFAIR COMPETITION AND PRACTICES

Introduced By: Senators Walaska, Bates, Blais, Breene, and Celona

Date Introduced: February 05, 2003

It is enacted by the General Assembly as follows:

     SECTION 1. Section 27-29-13 of the General Laws in Chapter 27-29 entitled "Unfair

Competition and Practices" is hereby amended to read as follows:

27-29-13. Payment of premium -- Cancellation. -- Notwithstanding the provisions of

chapter 40 of this title, private passenger motor vehicle insurance policyholders on either six (6)

month or twelve (12) month policies shall have the option of paying any policy premiums in

installment payments; provided that for a twelve (12) month policy the insurance insurer may

require a payment of fifteen percent (15%) of the annual premium at time of issuance with the

balance to be paid thereafter in nine (9) subsequent and equal monthly installments thereafter for

a six (6) month policy, the insurer may require a payment of thirty-five percent (35%) of the

premium at time of issuance with the balance to be paid in three (3) subsequent and equal

monthly installments thereafter. The insurer may levy a service charge of up to three dollars

($3.00) five dollars ($5.00) per installment period against those policyholders who choose this the

installment option. An insurer may levy and collect a maximum fee or charge of ten dollars

($10.00) for any late payment of premium by a policyholder. A late fee may not be imposed

unless payment is received more than five (5) business days following the date payment is due.

Policyholders shall be entitled to receive no less than thirty (30) days notice before a cancellation

of an automobile insurance policy for any reason except nonpayment of premium, in which

instance policyholders shall be entitled to receive no less than ten (10) days notice.

SECTION 2. This act shall take effect on January 1, 2004.     

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LC01051/SUB A

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