The bill amends Section 27-34-8 of the Rhode Island General Laws to enhance the powers and duties of the Rhode Island Property and Casualty Insurance Guaranty Association. A key change is the establishment of a new maximum obligation for the association to pay covered claims for first-party property loss claims arising from a single occurrence, which is set at one million dollars ($1,000,000) for insolvencies occurring after January 1, 2026. The bill also clarifies the association's obligations regarding claims and assessments.

Additionally, it amends Section 27-76-2 to require insurance companies to provide prominent and clear notice about hurricane deductibles and allows for a windstorm-specific deductible, while emphasizing the importance of mitigation measures.

The bill introduces the "Strengthen Rhody Homes Program," aimed at providing financial assistance to homeowners for resilience construction against hurricanes and other catastrophic events. This program is subject to the receipt of federal grants or funds and establishes a revolving fund to support its activities. It mandates premium discounts for properties with an Insurance Institute for Business and Home Safety (IBHS) Certificate for Fortified construction, contingent on actuarial justification and credible evidence of cost savings.

The bill also creates a framework for the program's administration, including eligibility requirements for homeowners, the role of certified evaluators and contractors, and the process for grant applications. It ensures that all documents submitted in support of grant applications are confidential and privileged.

Furthermore, the bill repeals the previous section regarding the Rhode Island commission on hurricane loss projection methodology, indicating a shift towards direct homeowner support. The act is set to take effect upon passage.

Statutes affected:
5549: 27-34-8, 27-76-2, 27-5-3.8
5549  SUB A: 27-34-8, 27-76-2, 27-5-3.8