Introduced By: Senator William Irons
Date Introduced : March 11, 1998
It is enacted by the General Assembly as follows:
SECTION 1. WHEREAS, The office of automobile theft and insurance fraud was established in 1993 by chapter 380, section 1, of the public laws 1993; and
WHEREAS, It was the intent of the Rhode Island general assembly to permit companies to collect a policy surcharge to fund the office of automobile theft and insurance fraud; and
WHEREAS, In 1993, the director of the department of business regulation stated that the department would permit such policy surcharge; and
WHEREAS, The Rhode Island general assembly wishes to reaffirm that the original intent of the legislation was to permit a policy surcharge, separately identifiable on either the policy declaration page or billing.
SECTION 2. Section 31-50-4 of the General Laws in Chapter 31-50 entitled "Office of Automobile Theft and Insurance Fraud" is hereby amended to read as follows:
31-50-4. Funding of office. [Repealed effective July 26,
2000.]. -- The director of business regulation shall fund
the office of automobile theft and insurance fraud annually through
those insurers authorized to write automobile insurance in the
state, in proportion to their market share, in an amount {DEL in
sum DEL} equal to one dollar ($1.00) {ADDper yearADD} times the total number
of registrations of vehicles having a gross weight of ten thousand
(10,000) pounds or less. {ADD Insurers may collect such amount
as a policy surcharge, separately identifiable on either the policy
declaration page or billing. ADD} The director is authorized by
rules and regulations to raise such funds and direct the method
by which payment of such charges is to be implemented. All funds
collected pursuant to this section shall be deposited as general
revenues.
SECTION 3. This act shall take effect upon passage.
