The bill amends the General Laws in Chapter 27-9, "Casualty Insurance Rating," to ensure that personal motor vehicle insurance rates for bus drivers, law enforcement officers, and commercial vehicle drivers are not affected by incidents that occur while they are on duty. It also protects individuals over the age of 65 from non-renewal of policies based solely on age and restricts insurance companies from imposing surcharges or penalties for accidents where the insured is minimally at fault or for minor property damage claims. Additionally, the bill safeguards volunteer drivers from discriminatory practices by insurance companies.

Moreover, the bill introduces a new section, 27-9-4.2, which regulates the use of telematics data by insurance companies. Telematics involves the collection of data on vehicle and driver behavior, and the bill requires insurers to comply with specific provisions when using this data to establish rates or assess premium surcharges. Insurers are prohibited from making telematics program participation a condition for insurance pricing or underwriting, except when it is the sole product offered and is clearly disclosed. The bill grants the insurance commissioner the authority to create regulations for the implementation of these provisions and is set to take effect upon passage, allowing for the use of telematics in motor vehicle insurance pricing, underwriting, and customer service enhancements.

Statutes affected:
7718: 27-9-4