The bill amends Section 27-9-4 of the General Laws in Chapter 27-9 entitled "Casualty Insurance Rating" to include several provisions related to the considerations in making insurance rates and the cancellation of policies. The bill specifies that no consideration shall be given to any loss or incident involving a bus driver, law enforcement officer, or commercial vehicle driver while in the course of employment when establishing or maintaining that driver’s rate for the operation of a personal motor vehicle. It also states that commercial vehicle drivers must provide proof that any loss or incident occurred while operating a commercial vehicle in the course of employment. The bill further outlines that rates shall not be excessive, inadequate, or unfairly discriminatory, and that insurance companies cannot fail to renew a private passenger automobile policy based on the insured's age (65 or older) or solely due to inquiries about policy terms.
Additionally, the bill prohibits insurance companies from failing to renew policies solely because of the insured's age once they reach 65 years or older. It also prevents insurance companies from considering any accident or claim where the insured is 50% or less at fault when establishing premium surcharges or penalties. The bill forbids insurance companies from assessing premium surcharges against insured individuals who are volunteer drivers or for property damage claims under $3,000. A new insertion (g) is added, which prohibits insurance groups, carriers, or companies from assessing any premium surcharge or penalty against an insured for making inquiries related to the actual terms of their policy. The act would take effect upon passage.
Statutes affected: 2685: 27-9-4