Chapter 335

2003 -- S 0281 SUBSTITUTE A

Enacted 07/17/03

AN ACT

RELATING TO INSURANCE -- FEDERAL RIOT REINSURANCE REIMBURSEMENT

FUND

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 27-33-10 of the General Laws in Chapter 27-33 entitled "Federal

Riot Reinsurance Reimbursement Fund" are hereby amended to read as follows:

27-33-10. "Basic property insurance" defined. -- "Basic property insurance" for the

purposes of this chapter means fire, extended coverage, vandalism, malicious mischief, and

sprinkler leakage insurance. It shall also include homeowners package coverages which include

dwelling and tenant forms, as well as the general liability coverages for one (1) to four (4) family

owner and nonowner occupied dwellings, either by endorsement or as a stand-alone policy. The

FAIR Plan shall be authorized to make rate filings using the standard that rates shall not be

excessive, inadequate or unfairly discriminatory, giving due consideration to the past and

prospective loss and expense experience for basic property insurance, written in this state, trends

in the frequency and severity of losses, the investment income of the FAIR Plan, and such other

information as the director of business regulation may require. All rates shall be calculated to be

self-supporting consistent with sound actuarial principles. Rates for basic property insurance shall

be approved by the department of business regulation, notwithstanding any limits on rate

approval authority. Nothing in this section shall be deemed to affect the duty of licensed insurers

in the state of Rhode Island to participate, as needed, on a direct basis, in the program pursuant to

sections 27-33-2 and 27-33-11 and any rules and regulations promulgated thereunder, and to pay

their proportionate share of losses and expenses incurred by the program upon assessment by the

program.

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

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LC01053/SUB A/3

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