2005 -- H 5970

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LC01708

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2005

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A N A C T

RELATING TO INSURANCE

     Introduced By: Representatives Long, Ehrhardt, and Moffitt

     Date Introduced: March 01, 2005

     Referred To: House Corporations

It is enacted by the General Assembly as follows:

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     SECTION 1. Section 27-8-13 of the General Laws in Chapter 27-8 entitled "Casualty

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Insurance Generally" is hereby repealed.

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     27-8-13. Group workers' compensation insurance. -- Nothing contained in this title

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shall be interpreted as preventing insurance companies, authorized to do business within this

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state, from offering workers' compensation and employers' liability insurance coverage to groups

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of employer beneficiaries.

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     SECTION 2. Chapter 27-7.1 of the General Laws entitled "Workers' Compensation

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Insurance" is hereby amended by adding thereto the following section:

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     27-7.1-13.2. Group workers' compensation insurance. – Nothing contained in this title

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shall be interpreted as preventing insurance companies, authorized to do business within this

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state, from offering workers' compensation and employers' liability insurance coverage to groups

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of employer beneficiaries.

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     SECTION 3. Section 27-54-8 of the General Laws in Chapter 27-54 entitled "Insurance

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Fraud Prevention Act" is hereby amended to read as follows:

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     27-54-8. Disclosure of arson conviction. -- (a) Every insurance provider doing business

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within this state shall require applicants for property insurance, real or personal, to disclose

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whether or not the applicant or applicants have been convicted of any degree of the crime of

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arson as described in chapter 4 of title 11 within ten (10) years of the application date.

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      (b) An insurance provider may use the existence of an arson conviction within ten (10)

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years as a reason to deny coverage.

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      (c) Failure to disclose the existence of an arson conviction when requested upon an

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insurance application shall be a misdemeanor punishable by a sentence of not more than one year

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imprisonment.

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      (d) The insurance application form shall indicate the existence of a criminal penalty for

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failure to disclose a conviction for arson.

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      (e) For the purpose of this section, "applicant" means a natural person, trust, partnership,

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association, corporation or other form of business organization; provided, that if the applicant is a

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trust, the beneficiaries of the trust shall be included, and if the applicant is a partnership,

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association, corporation or other form of business organization, each member, director,

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shareholder owning more than twenty percent (20%) of the common stock issued by the

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corporation, and the principal officer of the corporation shall be included.

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      (f) The provisions of this section do not apply to any policy with respect to highly

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protected risks. as defined in section 27-5-2.1(a)(4). A highly protected risk means a fire resistive

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building that meets the highest standards of fire safety according to insurance company

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underwriting requirements.

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     SECTION 4. This act shall take effect upon passage.

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LC01708

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO INSURANCE

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     This act would transfer the offering of group workers' compensation mandate from

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workers' compensation insurance. The act would define a highly protected risk.

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     This act shall take effect upon passage.

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LC01708

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