Chapter 06-158

2006 -- H 7180 SUBSTITUTE A

Enacted 06/21/06

A N A C T

RELATING TO INSURANCE - FEDERAL RIOT REINSURANCE REIMBURSEMENT FUND

Introduced By: Representative Roger A. Picard

Date Introduced: February 09, 2006

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" is 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, broad and

special form dwelling coverage commonly referred to as DP-2 and DP-3, 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, 2007.

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LC01119/SUB A

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