The bill amends Section 31-47-18 of the General Laws in Chapter 31-47, known as the "Motor Vehicle Reparations Act," to change the way automobile liability insurance rates are determined in the state. The new legislation mandates that the commissioner, after consulting with insurers licensed in the state, must establish regulations that prevent the use of an applicant's credit history or credit score when setting automobile liability insurance rates. Instead, rates should only reflect the applicant's past claim experience, adhering to the principles of "merit rating" or "experience rating" plans that are already in use in other states.

The explanation provided by the Legislative Council clarifies that the purpose of the act is to prohibit the consideration of an applicant's credit history in the calculation of automobile insurance rates. The act is designed to ensure that insurance rates are based solely on the individual's insurance claim history rather than their financial credit history. The bill stipulates that these changes will take effect immediately upon passage.

Statutes affected:
5830: 31-47-18