Chapter 363

2007 -- H 6522 SUBSTITUTE A

Enacted 07/07/07

A N A C T

RELATING TO INSURANCE -- RATE SETTING

Introduced By: Representatives Lewiss, Walsh, Kennedy, Lally, and Crowley

Date Introduced: June 13, 2007

It is enacted by the General Assembly as follows:

     SECTION 1. Section 27-44-6 of the General Laws in Chapter 27-44 entitled "Casualty,

Liability and Fire and Marine Insurance Rating" is hereby amended to read as follows:

27-44-6. Filing of rates and other rating information. -- (a) Filings as to competitive

markets; file and use. - In a competitive market, every insurer shall file with the director all rates

and supplementary rate information to be used in this state. At the time the rates are filed, the

filing shall state the specific model(s) used (catastrophic risk planning), and explain the manner in

which each model was used to determine the filed rate. The rates and supplementary rate

information shall be filed at least thirty (30) days prior to the proposed effective date. At the end

of that time, the rates may be used if no disapproval order or request for supporting information

has been issued by the director. If the director finds that an insurer's rates require closer review

because of an insurer's financial condition, or upon any other grounds as the director may

consider harmful to the public interest including, but not limited to, excessiveness, inadequacy, or

unfair discrimination, the director may request supporting information as needed. If the director

requests the further information, the rates may not be made effective until thirty (30) days after

the information has been received by the director.

      (b) Filings as to noncompetitive markets. - Nothing contained in this chapter shall be

construed to abrogate or supersede any statute or regulation governing either classes of business

identified in section 27-44-3, or deemed noncompetitive pursuant to the provisions of this

chapter. Those classes of business and noncompetitive markets shall have rates established

pursuant to the standards and procedures applicable under chapters 6, 7.1, 9, 19, and 20 of this

title, and chapter 62 of title 42.

      (c) Requirement of director. - Rates shall be filed in the form and manner prescribed by

the director.

      (d) Rating organization. - Any insurer may discharge its obligation under this section by

giving notice to the director that it uses rates and supplementary rate information prepared and

filed by a designated rating organization of which it is a member or subscriber. The insurer's rates

and supplementary rate information shall be those filed by the rating organization, including any

amendments, subject to modifications filed by the insurer.

      (e) Consent to rate. - Upon the written consent of the insured, stating the reasons for

consent and filed with the director, a rate in excess of that provided by an otherwise applicable

filing may be used on any specific risk. A rate greater than that applicable to the insured under a

residual market mechanism may not be used unless approved by the director.

      (f) Filings open to inspection. - All rates, supplementary rate information, and any

supporting information for rates filed under this act shall, as soon as filed, shall be open to public

inspection at any reasonable time. Copies may be obtained by any person on request and upon

payment of a reasonable charge.

     SECTION 2. This act shall take effect upon passage.

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LC03314/SUB A

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