2014 -- S 2307 SUBSTITUTE A
Enacted 07/02/14
RELATING TO INSURANCE - CASUALTY INSURANCE GENERALLY
Introduced By: Senator Roger Picard
Date Introduced: February 12, 2014
It is enacted by the General Assembly as follows:
SECTION 1. Section 27-8-11 of the General Laws in Chapter 27-8 entitled "Casualty Insurance Generally" is hereby amended to read as follows:
27-8-11. Regulations on cancellation and renewal. --
(a) In addition to, and not in lieu of, any other power the commissioner has to issue
rules and regulations, the commissioner of insurance may promulgate, in
accordance with the procedure established in chapter 35 of title 42, reasonable
rules and regulations concerning cancellation and renewal of liability and
property damage insurance for automobiles rated as private passenger
automobiles, homeowners insurance, residential fire
insurance, or any components thereof. Those regulations may require
that the insurer shall furnish to the named insured the reason, or reasons,
for cancellation or nonrenewal. Those regulations shall also require that the
insurer furnish, at least thirty (30) days prior to renewal, written notice of material coverage modifications any coverage reductions, elimination, or increased
deductibles not made at the request of the insured. The notice shall itemize
and describe the policy coverage reductions, elimination, or increased
deductibles and shall be captioned "NOTICE OF REDUCTION IN COVERAGE".
The policyholder shall be notified that the policy renewal contains the
"NOTICE OF REDUCTION IN COVERAGE" by one of the following manners:
(1) By mailing the "NOTICE OF REDUCTION IN COVERAGE" separate from the renewal policy package mailing; or
(2) By printing "NOTICE OF REDUCTION IN COVERAGE ENCLOSED" on the renewal policy package envelope and including said reductions in the first few pages of the renewal policy package; or
(3) By printing "NOTICE OF REDUCTION IN COVERAGE ENCLOSED" on the first page of the renewal policy package; or
(4) If the renewal policy package is made available by email, the email notifying the policyholder of the renewal shall contain a statement that the policy contains a "NOTICE OF REDUCTION IN COVERAGE" and said reductions shall be in the first few pages of the renewal policy package.
These
coverage changes must be approved by the insurance division with
respect to those types of insurance defined in section
§27-8-1(1) -- (8), issued to
non-business insured and bodily injury and property damage liability coverage
issued to non-business insured. There shall be no liability on the part of, and
no cause of action of any nature shall arise against, the commissioner of
insurance or any insurer, their authorized representatives, agents, or
employees, or any firm, person, or corporation furnishing to the insurer or
commissioner information as to the reasons for cancellation or nonrenewal,; for any
statement made by any of them in any written notice of cancellation or
nonrenewal,;
or in any other communication, oral or
written, specifying the reasons for
cancellation or nonrenewal,; or for the providing of information pertaining
to the cancellation or nonrenewal,; or for statements made, or evidence submitted, at any hearing conducted in connection with the cancellation
or nonrenewal.
(b) The commissioner shall promulgate
regulations with respect to personal motor vehicle insurance, homeowners
insurance, and residential fire insurance, or any components of that insurance
requiring notification to policyholders upon renewal of any material changes in policy deductibles, limits, coverage,
conditions or definitions, unless the change was requested by the policyholder
coverage reductions, elimination, or increased
deductibles not at the request of the insured.
SECTION 2. This act shall take effect on July 1, 2015.
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LC004380/SUB A
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