House Bill #7909 (2018)
AN ACT RELATING TO INSURANCE -- SURPLUS LINES INSURANCE
Adds insurance provided in the surplus lines market to the payment of premiums and cancellation regulations contained in the unfair competition and practices chapter.
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2018-02-28: Introduced, referred to House Corporations
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2018-03-23: Scheduled for hearing and/or consideration
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2018-03-23: Scheduled for hearing and/or consideration (03/27/2018)
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2018-03-26: Committee postponed at request of sponsor (03/27/2018)
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2018-04-17: Scheduled for hearing and/or consideration (04/24/2018)
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2018-04-17: Scheduled for hearing and/or consideration
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2018-04-24: Committee postponed at request of sponsor (04/24/2018)
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2018-04-27: Scheduled for hearing and/or consideration (05/01/2018)
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2018-05-01: Committee recommended measure be held for further study
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2018-06-08: Scheduled for consideration
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2018-06-08: Scheduled for consideration (06/12/2018)
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2018-06-12: Committee recommends passage of Sub A
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2018-06-16: Scheduled for reconsideration (06/19/2018)
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2018-06-19: Placed on House Calendar
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2018-06-19: Placed on House Calendar (06/20/2018)
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2018-06-19: Committee recommends passage of Sub A
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2018-06-20: House passed Sub A
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2018-06-22: Committee recommends passage of Sub A in concurrence
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2018-06-22: Referred to Senate Judiciary
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2018-06-22: Scheduled for hearing and/or consideration (06/22/2018)
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2018-06-23: Placed on Senate Calendar (06/23/2018)
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2018-06-23: Senate passed Sub A in concurrence
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2018-07-02: Transmitted to Governor
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2018-07-02: Vetoed by Governor
Changes since original draft
2018 – H 7909- 2018 – H 7909 SUBSTITUTE A
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LC004675- LC004675/SUB A/2
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S T A T E O F R H O D E I S L A N D- S T A T E O F R H O D E I S L A N D
- IN GENERAL ASSEMBLY
- JANUARY SESSION, A.D. 2018
- ____________
- A N A C T
RELATING TO INSURANCE – UNFAIR COMPETITION AND PRACTICES- RELATING TO INSURANCE – SURPLUS LINES INSURANCE
- Introduced By: Representative Scott Slater
- Date Introduced: February 28, 2018
- Referred To: House Corporations
- It is enacted by the General Assembly as follows:
SECTION 1. Section 27-29-13 of the General Laws in Chapter 27-29 entitled "Unfair Competition and Practices" is hereby amended to read as follows: 27-29-13. Payment of premium – Cancellation. Notwithstanding the provisions of chapter 40 of this title, policy holders of private passenger motor vehicle insurance and any insurance provided in the surplus lines market whether admitted or not admitted, shall policyholders on either six (6) month or twelve (12) month policies shall have the option of paying any policy premiums in installment payments; provided that for a twelve (12) month policy the insurer may require a payment of fifteen percent (15%) of the annual premium at time of issuance with the balance to be paid thereafter in nine (9) subsequent and equal monthly installments thereafter for a six (6) month policy, the insurer may require a payment of thirty-five percent (35%) of the premium at time of issuance with the balance to be paid in three (3) subsequent and equal monthly installments thereafter. The insurer may levy a service charge of up to five dollars ($5.00) per installment period against those policyholders who choose the installment option. An insurer may levy and collect a maximum fee or charge of ten dollars ($10.00) for any late payment of premium by a policyholder. A late fee may not be imposed unless payment is received more than five (5) business days following the date payment is due. Policyholders shall be entitled to receive no less than thirty (30) days notice before a cancellation of an automobile insurance policy for any reason except nonpayment of premium, in which instance policyholders shall be entitled to receive no less than ten (10) days notice. In the alternative the insurer in the surplus lines may use agency bill. The insurer may bill the surplus line broker or producing agent with the net payment (gross premium less minus any commissions and fees) and the payment shall not be due to either the surplus lines company or surplus lines broker by the producing agent earlier than forty-five (45) days after the end of the month in which the transaction takes place. Only after this forty-five (45) day period may a cancellation notice be issued for the non-payment of a premium with ten (10) days' notice. SECTION 2. This act shall take effect upon passage. ======== LC004675 ======== EXPLANATION- SECTION 1. Chapter 27-3 of the General Laws entitled "Surplus Lines Insurance" is hereby amended by adding thereto the following section:
- 27-3-52. Payment of surplus lines insurance - Cancellation.
- If a surplus lines insurer allows agency bill by the surplus lines broker, the surplus lines broker may bill the producing agent the net payment (gross premium minus any commissions and fees). The bill is not due to surplus lines broker by the producing agent any earlier than forty-five (45) days after the end of the month in which the transaction occurs. After the forty-five (45) day period the policy may be cancelled with a non-payment of premium cancellation notice that will include a ten (10) day notice.
- SECTION 2. This act shall take effect upon passage.
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- LC004675/SUB A/2
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- EXPLANATION
- BY THE LEGISLATIVE COUNCIL
OF A N A C T RELATING TO INSURANCE – UNFAIR COMPETITION AND PRACTICES *** This act would add insurance provided in the surplus lines market to the payment of premiums and cancellation regulations contained in the unfair competition and practices chapter. This act would take effect upon passage. ======== LC004675 ========- OF
- A N A C T
- RELATING TO INSURANCE – SURPLUS LINES INSURANCE
- ***
- This act would allow the surplus lines producing insurance agent forty-five (45) days for net payment (gross payment minus commission and fees) to the broker before the policy may be cancelled for nonpayment (after ten (10) day notice).
- This act would take effect upon passage. ======== LC004675/SUB A/2 ========
Votes
NOTE: Electronic voting records are unofficial and may not be accurate. For an official vote tally, check the
House or Senate Journal from the day of the vote.
June 20, 2018 at 7:01pm
Yeas: 72 /
Nays: 1 /
Not voting: 2 /
Recused: 0
Floor vote for Passage
In Concurrence
June 23, 2018 at 11:50pm
Yeas: 13 /
Nays: 12 /
Not voting: 12 /
Recused: 0