2003 -- S 0025

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LC00149

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2003

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A N A C T

RELATING TO DOMESTIC INSURANCE COMPANIES

     Introduced By: Senator John F. McBurney

     Date Introduced: January 14, 2003

     Referred To: Senate Commerce, Housing & Municipal Government

It is enacted by the General Assembly as follows:

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     SECTION 1. Section 27-1-39 of the General Laws in Chapter 27-1 entitled "Domestic

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Insurance Companies" is hereby amended to read as follows:

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     27-1-39. Discrimination in rates prohibited. -- (a) No insurance company organized to

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do business within this state shall make any distinction or discrimination as to the premiums or

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rates charged for policies of casualty, fire, home owners, accident and health, or marine

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insurance, nor shall the company make or permit the rejection of an individual's application for

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insurance coverage, and the determination of the rate class for the individual, solely on the basis

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of a disability unless the disability is relevant to the risk of loss, nor shall any insurance company

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make or require any rebate, diminution, or discount upon the sum to be paid on any policy based

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on any disability discrimination, nor insert in the policy any condition nor make any stipulation,

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where the person insured shall bind himself or herself, his or her heirs, executors, administrators,

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and assigns, to accept any less sum than the full value or amount of the policy in case of a claim

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accruing on the policy by reason of the claim of the person insured, other than those stipulations

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or conditions as are imposed upon all persons in similar cases, and any stipulation or condition

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made in this manner or inserted shall be void.

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      (b) No insurance company organized to do business within this state shall make any

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distinction or discrimination as to the premiums or rates charged for automobile insurance

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policies, nor shall the company require any individual, age sixty-two (62) or older, to submit the

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driving record of his or her spouse, nor shall the company make or permit the rejection of an

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individual's application for insurance coverage, and the determination of the rate class of the

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individual, solely on the basis of a disability or the modification of the automobile with

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specialized equipment that permits an individual with a disability to operate the automobile,

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unless the disability or modification of the automobile is relevant to the risk or loss, nor shall any

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insurance company make or require any rebate, diminution, or discount upon the sum to be paid

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on any policy based on any disability discrimination, nor insert in the policy any condition nor

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make any stipulation where the person insured shall bind himself or herself, his or her heirs,

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executors, administrators, and assigns, to accept any less sum than the full value or amount of the

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policy in case of a claim accruing on the policy by reason of the claim of the person insured, other

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than those stipulations or conditions as are imposed upon all persons in similar cases, and any

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stipulation or condition made in this manner or inserted shall be void. The department of business

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regulation shall enforce the provisions of this section.

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     SECTION 2. This act shall take effect upon passage.

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LC00149

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO DOMESTIC INSURANCE COMPANIES

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     This act would prohibit automobile insurance companies from requiring applicants, age

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sixty-two (62) or older, to submit the driving record of his or her spouse.

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     This act would take effect upon passage.

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LC00149

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