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 for all first-party property loss claims for insolvencies occurring after January 1, 2026. The bill also clarifies the association's obligations regarding claims handling, including the rights to investigate and adjust claims, as well as pursue salvage and subrogation recoverable on covered claims.

Additionally, the bill amends Section 27-76-2 to require insurance companies to provide prominent and clear notice to insureds regarding hurricane deductibles and allows for a windstorm-specific deductible, which must be approved by the director and cannot exceed five percent of the insured value.

Furthermore, the bill introduces the "Strengthen Rhody Homes Program," aimed at providing financial assistance to homeowners for resilience construction to make residential properties more resilient to hurricanes and other catastrophic events. It establishes eligibility requirements for homeowners, including that the home must be an owner-occupied, single-family primary residence, and outlines the responsibilities of contractors and evaluators involved in the program. The bill mandates premium discounts for properties with an Insurance Institute for Business and Home Safety (IBHS) certification, provided the discounts are actuarially justified.

The act also creates a revolving fund designated as the "Strengthen Rhody Homes Revolving Fund" to support the program, which will consist of any monies deposited from federal grants or other sources. The bill includes provisions for the administration of the program, including the requirement for grant applications to be confidential and the establishment of rules and guidelines for contractors and evaluators.

The existing section regarding the Rhode Island commission on hurricane loss projection methodology is repealed, indicating a shift in focus towards the new program and its objectives. 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