It is enacted by the General Assembly as follows:

SECTION 1. Section 27-9-4 of the General Laws in Chapter 27-9 entitled "Casualty Insurance Rating" is hereby amended to read as follows:

{ADD 27-9-4. Considerations in making of rates -- Cancellation of policy. -- ADD} All rates shall be made in accordance with the following provisions:

(a)(1) Due consideration shall be given to past and prospective loss experience within and outside this state, to catastrophe hazards, if any, to a reasonable margin for underwriting profit and contingencies, to dividends, savings, or unabsorbed premium deposits allowed or returned by insurers to their policyholders, members, or subscribers, to past and prospective expenses both country-wide and those specially applicable to this state, and to all other relevant factors within and outside this state; provided however, that no consideration shall be given any loss or incident involving a bus driver, while in the course of his or her employment for the Rhode Island public transit authority, or private or municipal school bus companies, in establishing or maintaining that driver's rate respecting the operation of a personal motor vehicle or vehicles; provided however, that no consideration shall be given any loss or incident involving a law enforcement officer while in the course of his or her employment for the state, city or town police departments, in establishing, or maintaining that driver's rate respecting the operation of a personal motor vehicle or vehicles; provided, however, that no consideration shall be given any loss or incident involving a commercial vehicle driver while in the course of his or her employment, in establishing or maintaining that driver's rate respecting the operation of a personal motor vehicle(s);

It shall be the responsibility of the commercial vehicle driver to provide his or her insurance company with proof that the loss or incident took place in the course of employment while operating a commercial vehicle. For purposes of this section, a commercial vehicle shall be a motor vehicle with a gross weight in excess of ten thousand (10,000) pounds or a motor vehicle used for public livery.

(2) The systems of expense provisions included in the rates for use by any insurer or group insurers may differ from those of other insurers or groups of insurers to reflect the requirements of the operating methods of any insurer or group with respect to any kind of insurance, or with respect to any subdivision or combination thereof for which subdivision or combination separate expense provisions are applicable;

(3) Risks may be grouped by classifications for the establishment of rates and minimum premiums;

(4) Rates shall not be excessive, inadequate or unfairly discriminatory.

(5) In establishing or maintaining an insured's rate or classification respecting the operation of a personal motor vehicle, any insured, sixty-five (65) years of age or older, who meets the criteria set forth above and has not had any chargeable accidents or moving violations within three (3) years preceding the establishment of the rate of insurance or classification, shall not be penalized solely by reason of their age.

(b) No insurance company shall fail to renew a private passenger automobile policy because of a loss of occurrence only, unless a chargeable loss occurrence of five hundred dollars ($500) or more than two (2) non-chargeable loss occurrences, involving the insureds, have taken place within the annual policy year.

(c) No insurance company shall fail to renew a private passenger automobile policy solely because the insured has attained the age of sixty-five (65) years or older.

Whenever the commissioner of insurance shall have reason to believe that any insurance company has refused to renew a private passenger automobile policy solely because the applicant has reached the age of sixty-five (65) years or older, he or she shall notify such company that it may be in violation of this section and, in his/her discretion he or she may require a hearing to determine whether or not such company has actually been engaged in the practice as aforesaid. Any hearing held under this section shall in all respects comply with the hearing procedure provided in the administrative procedures act.

If after such hearing the commissioner shall determine that the company has engaged in the practice of systematically failing to renew private passenger automobile policies because of the advanced age of the insureds, he/she shall reduce his/her finding to writing and shall issue and cause to be served upon the company an order to cease and desist from engaging in such practices. After the issuance of such cease and desist order, if the commissioner finds that the company has continued to engage in such practices, he/she shall impose upon such company a fine not to exceed the amount of one thousand dollars ($1,000) for each separate violation.

Any company aggrieved by any order or decision of the commissioner of insurance may appeal such order and decision to the superior court of Providence in accordance with the administrative procedures act.

{ADD (d) No insurance group, carrier or company in establishing any premium surcharge or penalty relative to a specific motor vehicle policy, shall consider any accident or any claim where any insured covered by said policy is less than fifty percent (50%) at fault. ADD}

SECTION 2. This act shall take effect upon passage.