2014 -- H 7535 SUBSTITUTE A
Enacted 07/02/14
A N A C T
RELATING TO INSURANCE - CASUALTY INSURANCE GENERALLY
Introduced By: Representatives Keable, and Carnevale
Date Introduced: February 26, 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. Those regulations may require that the insurer shall furnish to
the named insured and to a loss payee listed on the
policy 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
elimination, reduction, diminution or increased deductible not at the request
of the insured; and in this case the notice shall itemize and describe the
coverage changes and shall be separate from the renewal policy and the notice
shall be captioned "INSURANCE COVERAGE REDUCTION NOTICE". If the
insurer fails to provide such notice, the coverage provided to the named
insured shall remain in effect until notice is provided or until the effective
date of replacement coverage obtained by the named insured, whichever occurs
first. For the purpose of this section, notice is considered given thirty (30)
days following the date of giving of the notice. 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 and to a
loss payee listed on the policy upon renewal of any material changes in policy deductibles, limits, coverage,
conditions or definitions, unless the change was requested by the policyholder.
coverage elimination, reduction, diminution or
increased deductible not at the request of the insured.
SECTION 2. This act shall take effect on January 1, 2015.
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LC004767/SUB A
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