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Prevents insurance companies from treating widowed persons differently than married persons when establishing or maintaining an insured's rate or classification respecting the operation of a personal motor vehicle. Effective 1/1/24

Changes since original draft

~~2023 – H 5337~~
2023 – H 5337 SUBSTITUTE A
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~~LC000836~~
LC000836/SUB A
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S TATE OF RHODE IS L AND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2023
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A N A C T
RELATING TO INSURANCE – CASUALTY INSURANCE RATING
Introduced By: Representatives Handy, Serpa, Cortvriend, Messier, Fenton-Fung,
Solomon, Fogarty, Caldwell, and Chippendale
Date Introduced: February 03, 2023
Referred To: House Corporations
~~It is enacted by the GeneralAssembly as follows:~~
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:
27-9-4. Considerations in making of rates — Cancellation of policy.
(a) Allrates shallbe made in accordance with the following provisions:
(1)(i) 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 countrywide andthose specially applicable to this state,andto all other relevant factors within and outside this state; provided, that no consideration shall be given to:
(A) 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;
(B) Any loss or incident involving a law enforcementofficer, while in the course of his or her employment for the state,city, town police departments, or federallaw enforcement agency, in establishing or maintaining that driver's rate respecting the operation of a personal motor vehicle or vehicles; and
(C) 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 personalmotor vehicle(s);
(ii) It shall be the responsibility of a 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 the purposes of this section, a "commercial vehicle" shall be a motor vehicle with a gross weight in excess of ten thousand pounds (10,000 lbs.) 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 of insurers may differ from those of other insurers or groups of insurers to reflectthe 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 of insurance 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 shallnot be excessive, inadequate, or unfairly discriminatory; and
(5) Inestablishing or maintaining aninsured's rateor classification respectingthe operation of a personal motor vehicle, widowed persons shall not be treated differently than persons in a marriage; and
(5) For anypolicy written, delivered or renewedon or afterJanuary1, 2024, in establishing or maintaining an insured's rate or classification respecting the operation of a personal motor vehicle, widowed persons shall not be treated differently than persons in a marriage; and
(5)(6) In establishing or maintaining an insured's rate or classification respecting the operation of a personalmotor vehicle, any insured sixty-five (65) years of age or older, who meets the criteria set forth in this section 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 his or her 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 three thousand dollars ($3,000) or more than two (2) nonchargeable loss occurrences,involving the insured, have taken place within the annualpolicy year.
(c)(1) 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;
(2) Whenever the commissioner of insurance shall have reason to believe that any insurance company has refusedto renew a private passenger automobile policy solely because the applicant has reached the age of sixty-five (65) years or older, the commissioner shall notify the company thatit may be in violation of this sectionand in his or her discretion he or she mayrequire a hearing to determine whether or not the company has actually beenengagedin the practice stated
LC000836 - Page 2of 4 in this subsection. Any hearing held under this sectionshall in all respects comply with the hearing procedure provided in the Administrative Procedures Act, chapter 35 of title 42;
LC000836/SUB A - Page 2of 4 in this subsection. Any hearing held under this sectionshall in all respects comply with the hearing procedure provided in the Administrative Procedures Act, chapter 35 of title 42;
(3) If after the hearing the commissioner shall determine that the company has engaged in the practice of systematically failing torenew private passenger automobile policies because of the advancedage of the insured, he or she shallreduce his or her findings to writing and shall issue and cause tobe servedupon the company anorder tocease anddesistfromengaging in those practices. After the issuance of the cease and desist order, if the commissioner finds that the company has continued to engage in those practices, he or she shall impose upon the company a fine not to exceed the amount of one thousand dollars ($1,000) for each separate violation.
(4) Any company aggrieved by any order or decision of the commissioner of insurance may appeal the order and decision to the superior court of Providence in accordance with the Administrative Procedures Act, chapter 35 of title 42.
(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 that policy is fifty percent (50%) or less at fault.
(e) No insurance group, carrier, or company shall assess any premium surcharge against anyinsured coveredby a motor vehicle policy where a propertydamage claim payment is less than three thousand dollars ($3,000).
(f) No insurance group, carrier, or company shall refuse to issue motor vehicle liability insurance, impose a surcharge, or otherwise increase the rate for a motor vehicle policy solely because the applicant is a volunteer driver. Volunteer driver is defined as a person who provides services without compensation to a nonprofit agency or charitable organization.
SECTION 2. This act shalltake effect on January 1, 2024.
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~~LC000836~~
LC000836/SUB A
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~~LC000836 - Page 3of 4~~
LC000836/SUB A - Page 3of 4
EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO INSURANCE – CASUALTY INSURANCE RATING
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This act would prevent insurance companies from treating widowed persons differently thanmarried persons whenestablishing or maintaining aninsured's rateor classification respecting the operation of a personalmotor vehicle.
~~This act would take effect on January 1, 2024. ======== LC000836 ========~~
~~LC000836 - Page 4of 4~~
This act would take effect on January 1, 2024. ======== LC000836/SUB A ========
LC000836/SUB A - Page 4of 4

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House Bill #5337 (2023)

AN ACT RELATING TO INSURANCE -- CASUALTY INSURANCE RATING

Changes since original draft

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