The bill introduces a series of amendments to the "Producer Licensing Act" and other related laws within the General Laws. It provides new definitions and clarifies existing ones, such as "business entity," "department," "home state," "insurance producer," and "license," while removing the definition of "Contracted producer report." It also revises the process for notifying the insurance commissioner about the termination of an insurance producer, distinguishing between terminations for cause and without cause, and setting a 30-day notification requirement for both. The bill reinforces the immunity from civil liability for various parties involved in the reporting process, provided they do not act with malice, and establishes that certain documents and information related to investigations are confidential and not subject to subpoena or discovery. Additionally, it includes penalties for insurers or producers who fail to report as required or who report with malice.

The bill also amends the Rhode Island Life and Health Insurance Guaranty Association Act, expanding coverage to include annuity contracts and plans, and specifying the creation of an association of member insurers to pay benefits and continue coverages. It outlines the costs of examinations for insurance companies, increases the maximum annual assessment, and specifies coverage for nonresident certificate holders under group policies or contracts. The bill further revises the maximum coverage limits that the association may be obligated to provide, introduces new provisions for long-term care riders, and expands the definition of "member insurer" to include health maintenance organizations (HMOs). It also details the association's duties in the event of insurer insolvency, including providing benefits and coverages, notifying insureds, and offering substitute coverage. Lastly, the bill establishes the "Pet Insurance Act," which sets out a legal framework for pet insurance, including disclosure requirements, waiting periods, and exclusions for preexisting conditions.

Statutes affected:
5832: 27-10-1.1, 27-13.1-7, 42-14-5