Chapter 078
2009 -- S 0473 SUBSTITUTE A
Enacted 07/01/09
A N A C T
RELATING TO INSURANCE -- CASUALTY INSURANCE RATINGS
Introduced By: Senators Gallo, and DiPalma
Date Introduced: February 25, 2009
It is enacted by the
General Assembly as follows:
SECTION 1. Section 27-9-4 of the General Laws in Chapter
27-9 entitled "Casualty
Insurance Rating" is
hereby amended to read as follows:
27-9-4.
Considerations in making of rates -- Cancellation of policy.
-- (a) All rates
shall be made in accordance with the following provisions:
(1) (i) Due consideration shall be
given to past and prospective loss experience within
and outside this state, to catastrophe hazards, if any,
to a reasonable margin for underwriting
profit and contingencies, to dividends, savings, or
unabsorbed premium deposits allowed or
returned by insurers to their policyholders, members, or
subscribers, to past and prospective
expenses both country wide and those specially applicable to
this state, and to all other relevant
factors within and outside this state; provided, that no
consideration shall be given to:
(A) Any loss or
incident involving a bus driver, while in the course of his or her
employment for the
companies, in establishing or maintaining that driver's rate
respecting the operation of a personal
motor vehicle or vehicles;
(B) Any loss or
incident involving a law enforcement officer, while in the course of his
or her employment for the state, city, town police
departments, or federal law enforcement
agency, in establishing or maintaining that driver's rate
respecting the operation of a personal
motor vehicle or vehicles; and
(C) Any loss or
incident involving a commercial vehicle driver, while in the course of
his or her employment, in establishing or maintaining
that driver's rate respecting the operation of
a personal motor vehicle(s);
(ii) It shall be the
responsibility of a commercial vehicle driver to provide his or her
insurance company with proof that the loss or incident took
place in the course of employment
while operating a commercial vehicle. For the purposes of
this section, a "commercial vehicle"
shall be a motor vehicle with a gross weight in excess of
ten thousand (10,000) pounds or a motor
vehicle used for public livery;
(2) The systems of
expense provisions included in the rates for use by any insurer or
group insurers may differ from those of other insurers or
groups of insurers to reflect the
requirements of the operating methods of any insurer or group with
respect to any kind of
insurance, or with respect to any subdivision or combination of
insurance for which subdivision
or combination separate expense provisions are
applicable;
(3) Risks may be
grouped by classifications for the establishment of rates and minimum
premiums;
(4) Rates shall not be
excessive, inadequate, or unfairly discriminatory; and
(5) In establishing or
maintaining an insured's rate or classification respecting the
operation of a personal motor vehicle, any insured sixty-five
(65) years of age or older, who
meets the criteria set forth in this section and has not
had any chargeable accidents or moving
violations within three (3) years preceding the establishment of
the rate of insurance or
classification, shall not be penalized solely by reason of their
age.
(b) No insurance
company shall fail to renew a private passenger automobile policy
because of a loss of occurrence only, unless a chargeable
loss occurrence of one thousand dollars
($1,000) one
thousand five hundred dollars ($1,500) or more than two (2) nonchargeable loss
occurrences, involving the insured, have taken place within the
annual policy year.
(c) (1) No insurance
company shall fail to renew a private passenger automobile policy
solely because the insured has attained the age of
sixty-five (65) years or older;
(2) Whenever the
commissioner of insurance shall have reason to believe that any
insurance company has refused to renew a private passenger
automobile policy solely because the
applicant has reached the age of sixty-five (65) years or
older, the commissioner shall notify the
company that it may be in violation of this section and in
his or her discretion he or she may
require a hearing to determine whether or not the company has
actually been engaged in the
practice stated in this subsection. Any hearing held under
this section shall in all respects comply
with the hearing procedure provided in the Administrative
Procedures Act, chapter 35 of title 42;
(3) If after the
hearing the commissioner shall determine that the company has engaged
in the practice of systematically failing to renew
private passenger automobile policies because of
the advanced age of the insured, he or she shall reduce
his or her findings to writing and shall
issue and cause to be served upon the company an order to
cease and desist from engaging in
those practices. After the issuance of the cease and desist
order, if the commissioner finds that the
company has continued to engage in those practices, he or she
shall impose upon the company a
fine not to exceed the amount of one thousand dollars
($1,000) for each separate violation.
(4) Any company
aggrieved by any order or decision of the commissioner of insurance
may appeal the order and decision to the superior court
of Providence in accordance with the
Administrative Procedures Act, chapter 35 of title 42.
(d) No insurance group,
carrier or company in establishing any premium surcharge or
penalty relative to a specific motor vehicle policy, shall
consider any accident or any claim where
any insured covered by that policy is fifty percent (50%)
or less at fault.
(e) No insurance group,
carrier or company shall assess any premium surcharge against
any insured covered by a motor vehicle policy where a
property damage claim payment is less
than one thousand dollars ($1,000) one
thousand five hundred dollars ($1,500).
SECTION 2. This act shall take effect on January 1, 2010.
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LC00985/SUB A
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