2026 -- S 2771

========

LC004462

========

     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2026

____________

A N   A C T

RELATING TO INSURANCE -- DOMESTIC INSURANCE COMPANIES

     Introduced By: Senators Pearson, Mack, Gallo, Tikoian, Lauria, Kallman, Euer, and
Zurier

     Date Introduced: March 04, 2026

     Referred To: Senate Commerce

     It is enacted by the General Assembly as follows:

     SECTION 1. Chapter 27-1 of the General Laws entitled "Domestic Insurance Companies"

is hereby amended by adding thereto the following section:

     27-1-48. Time limits for claim settlements.

     (a) Notwithstanding the provisions of any other general or public law to the contrary, within

thirty (30) days from receipt of a notice of claim filed by an insured party, the insurer shall either:

     (1) Issue a determination of denial of coverage or acceptance of coverage to the insured

party and if coverage is accepted, provide a good faith offer to settle the claim; or

     (2) Notify the insured in writing that additional information is required to complete the

review of the claim. If the insurer provides notice pursuant to this subsection, then the insurer shall

provide in the written notice the additional items that are needed to complete the review. Upon

receipt of the identified items by the insurer, the insurer shall comply with the requirements of

subsection (a)(1) of this section.

     (b) Failure to comply with the provisions of this section shall subject the insurer to a penalty

of two hundred fifty dollars ($250) per day, payable to the insured party.

     (c) Insured parties may file a written complaint with the department of business regulation

(DBR). The director of the DBR or the director’s designee shall conduct an investigation, and upon

a determination that the conduct of the insurer violates the provisions of this section, the director

shall order payment to the insured party within fourteen (14) days.

     (d) Nothing in this section shall be construed to limit the rights of an insured to pursue a

civil action against the insurer for breach of contract or bad faith, nor shall the provisions of this

section be construed to limit any recovery or judgment for compensatory damage, punitive

damages, or costs or expenses.

     SECTION 2. This act shall take effect upon passage.

========

LC004462

========

LC004462 - Page 2 of 3

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO INSURANCE -- DOMESTIC INSURANCE COMPANIES

***

     This act would require insurance companies to settle claims or request additional

information within thirty (30) days of receipt of a notice of claim filed by an insured party. Failure

to comply would result in a penalty of two hundred fifty ($250) dollars per day, payable to the

insured.

     This act would take effect upon passage.

========

LC004462

========

LC004462 - Page 3 of 3