Chapter 019

2013 -- H 5444 SUBSTITUTE A

Enacted 05/20/13

A N A C T

RELATING TO INSURANCE -- BINDERS

Introduced By: Representatives Kennedy, and San Bento

Date Introduced: February 13, 2013

It is enacted by the General Assembly as follows:

SECTION 1. Title 27 of the General Laws entitled "INSURANCE" is hereby amended

by adding thereto the following chapter:

CHAPTER 9.4

INSURANCE BINDERS AS EVIDENCE OF COVERAGE

27-9.4-1. Short title. -- This chapter shall be known and may be cited as the "Model Act

Regarding Use of Property and Casualty Insurance Binders as Evidence of Coverage."

27-9.4-2. Purpose. -- This chapter requires that property and casualty insurance binders

obligate coverage until a policy is issued or cancelled.

27-9.4-3. Definitions. -- As used in this chapter:

(1) "Insurance binder" means a written temporary contract of insurance authorized by an

insurer issued prior to the insurance policy that includes:

(i) The name and address of the insured and any additional named insureds, mortgagees,

or lienholders;

(ii) A description of the property insured;

(iii) A description of the nature and amount of coverage;

(iv) The identity of the insurer and of the authorized representative executing the binder;

(v) The effective and expiration date of coverage; and

(vi) The binder number or the policy number where applicable to a policy extension.

(2) "Insurance policy" means a contract of insurance describing the term, coverage,

premiums, and deductibles.

(3) "Insured" means the person, group, or property for which an insurance policy is

issued.

(4) "Insurer" means any organization that issues property or casualty insurance.

(5) "Lender" means an individual, partnership, corporation, association, or other entity, or

loan servicer acting on behalf of such party, who lends money and receives or otherwise acquires

a mortgage, a lien, a deed of trust, or any other security interest in or on any real or personal

property as security for the loan.

27-9.4-4. Insurer Obligations. -- An insurer that provides an insurance binder is

obligated to provide the coverage according to the terms of such binder until the insurer issues the

insurance policy or cancels the binder.

27-9.4-5. Penalties. -- Any person or entity who violates this chapter may be subject to

action pursuant to section 42-14-16.

SECTION 2. This act shall take effect on October 1, 2013.

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LC01270/SUB A

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