The bill amends Section 27-8-11 of the General Laws concerning regulations on the cancellation and renewal of various types of insurance, including homeowner's insurance. It empowers the commissioner of insurance to establish rules requiring insurers to provide policyholders with written notice of any coverage reductions, eliminations, or increased deductibles at least thirty days prior to renewal. Additionally, the bill mandates that any increase of more than twenty percent in the cost of renewal for homeowner's insurance must be communicated to the policyholder two months in advance. It also stipulates that if an insurer decides not to renew a homeowner's policy, the policyholder must receive a notice of non-renewal at least two months before the policy expires.

Furthermore, the bill introduces a cap on annual homeowner policy renewal premium increases, limiting them to a maximum of five percent for policyholders aged sixty-five or older who meet specific low- or moderate-income criteria. Violations of these provisions are classified as deceptive trade practices, subject to fines of up to one thousand dollars. The act is set to take effect upon passage, with the new regulations and requirements coming into force on September 1, 2025.

Statutes affected:
15: 27-8-11