The bill introduces the COVID-19 Pandemic Insurance Recovery Act, which is a new chapter (Chapter 82) to be added to Title 27 of the General Laws entitled "INSURANCE." This act is designed to provide a mechanism for certain businesses to recover losses from their insurers due to business interruption as a result of the COVID-19 pandemic, provided they had a business interruption insurance policy in force on March 9, 2020. This date corresponds with the declaration of a public health emergency and state of emergency by the governor in executive order 20-2.

The act specifically applies to businesses in the State of Rhode Island with fewer than 100 eligible employees, defined as full-time employees working at least 25 hours per week. It mandates that insurance policies in force on March 9, 2020, will be interpreted to include coverage for business interruption due to a global virus transmission or pandemic. The coverage will be subject to the policy limits and will indemnify insured businesses for losses incurred during the state of emergency. Insurers that indemnify claims under this act may seek relief and reimbursement from the department of business regulation insurance division. The insurance commissioner is tasked with establishing procedures for claim submissions and qualifications, including measures to prevent fraudulent claims and ensure proper review and payment by insurers. The act also allows the insurance commissioner to collect additional amounts from insurance companies, excluding life and health insurance companies, to recover amounts paid out under this chapter. The act will take effect upon passage.