Chapter 408

2013 -- S 0387 SUBSTITUTE A

Enacted 07/15/13

A N A C T

RELATING TO INSURANCE -- CERTIFICATES OF INSURANCE MODEL ACT

Introduced By: Senators Bates, Picard, and Walaska

Date Introduced: February 26, 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 78

CERTIFICATES OF INSURANCE MODEL ACT

27-78-1. Short title. -- This chapter shall be known and may be cited as the "Certificates

of Insurance Model Act."

27-78-2. Definitions. -- For purposes of this chapter:

(1) "Certificate of insurance" means a document or instrument, regardless of how titled or

described, that is prepared or issued by an insurer or insurance producer as evidence of property

or casualty insurance coverage. The term does not include a policy of insurance, insurance binder,

policy endorsement, or automobile insurance identification or information card.

(2) "Insurance producer" means a person required to be licensed under the laws of this

state to sell, solicit, or negotiate property or casualty insurance.

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

(4) "Person" means any individual, partnership, corporation, association, or other legal

entity, including any government or governmental subdivision or agency.

27-78-3. Certificate forms. – (a) The commissioner of insurance shall prohibit the use of

a certificate of insurance form if the form:

(1) Is unfair, misleading, or deceptive, or violates public policy; or

(2) Violates any law, including any regulation promulgated by the commissioner of

insurance.

(b) A certificate of insurance is not a policy of insurance and does not affirmatively or

negatively amend, extend, or alter the coverage afforded by the policy to which the certificate of

insurance makes reference. A certificate of insurance shall not confer to any person new or

additional rights beyond what the referenced policy of insurance expressly provides.

27-78-4. Limitations on use. -- (a) A person may not:

(1) Alter or modify a certificate of insurance after issuance by a producer or insurer;

(2) Prepare, issue, or request or require the issuance of a certificate of insurance that

contains any false or misleading information concerning the policy of insurance to which the

certificate of insurance makes reference; or

(3) Prepare, issue, or request or require the issuance of a certificate of insurance that

purports to affirmatively or negatively alter, amend, or extend the coverage provided by the

policy of insurance to which the certificate of insurance makes reference.

(b) A certificate of insurance may not warrant that the policy of insurance referenced in

the certificate comply with the insurance or indemnification requirements of a contract and the

inclusion of a contract number or description within a certificate of insurance may not be

interpreted as doing such.

27-78-5. Notice requirements. -- A person is entitled to notice of cancellation,

nonrenewal, or any material change, and to any similar notice concerning a policy of insurance

only if the person has such notice rights under the terms of the policy of insurance or any

endorsement to the policy. The terms and conditions of the notice are governed by the policy of

insurance or endorsement and may not be altered by a certificate of insurance.

27-78-6. Applicability. -- (a) The provisions of this chapter shall apply to all certificates

of insurance issued in connection with property, operations, or risks located in this state,

regardless of where the policyholder, insurer, insurance producer, or person requesting or

requiring the issuance of a certificate of insurance is located.

(b) A certificate of insurance or any other document or correspondence prepared, issued,

requested, or required in violation of this chapter shall be null and void.

27-78-7. Enforcement and penalties. -- (a) The commissioner of insurance shall have

the power to examine and investigate the activities of any person that the commissioner

reasonably believes has been or is engaged in an act or practice prohibited by this chapter.

(b) The commissioner of insurance shall have the power to enforce the provisions of this

chapter in accordance with section 42-14-16.

(c) The commissioner of insurance may adopt reasonable rules and regulations as are

necessary or proper to carry out the provisions of this chapter.

SECTION 2. This act shall take effect ninety (90) days after passage.

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LC01164/SUB A

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