The bill amends Section 27-9-4 of the General Laws in Chapter 27-9 entitled "Casualty Insurance Rating" to include new provisions and restrictions on how insurance rates are determined for private passenger automobile policies. The bill specifies that no consideration shall be given to any loss or incident involving bus drivers, law enforcement officers, or commercial vehicle drivers while in the course of their employment when establishing their personal motor vehicle insurance rates. It also outlines the responsibilities of commercial vehicle drivers to provide proof of such incidents occurring during employment. Additionally, the bill prohibits insurance companies from failing to renew policies based on age once the insured reaches 65 years old, provided they have a clean driving record. It also sets forth procedures for the commissioner of insurance to address non-compliance by insurance companies, including hearings and potential fines.

Furthermore, the bill introduces new language that prohibits insurance groups, carriers, or companies from using the zip code of an insured individual's residence when calculating policy premiums. This is intended to prevent discrimination based on geographical location. The bill also includes provisions that prevent insurance companies from imposing premium surcharges or penalties based on accidents where the insured is 50% or less at fault, and from assessing surcharges for property damage claims under $3,000. It also protects volunteer drivers from increased rates or refusal of coverage. The act would take effect immediately upon passage.

Statutes affected:
7016: 27-9-4