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 significant 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 introduces the "Strengthen Rhody Homes Program," which is established within the Department of Business Regulation, Division of Insurance. This program aims to provide financial assistance to homeowners for resilience construction to mitigate losses due to hurricanes and other catastrophic events. It outlines eligibility requirements for homeowners, including the necessity for properties to be owner-occupied, single-family residences, and provides grants for construction or retrofitting projects, contingent on the availability of federal or other funding sources.

Additionally, the bill mandates that all insurers writing homeowners or dwelling policies in the state must offer premium discounts or rate reductions for properties that have received an Insurance Institute for Business and Home Safety (IBHS) certification, provided the discounts are actuarially justified.

The bill includes provisions for the administration of the Strengthen Rhody Homes Program, including the creation of a revolving fund to support the program, the establishment of eligibility criteria for grant applicants, and the requirement for contractors and evaluators involved in the program to meet specific qualifications.

Furthermore, the bill repeals existing language related to the Rhode Island Commission on Hurricane Loss Projection Methodology, streamlining the focus on the new program while maintaining the commission's role in evaluating hurricane loss projections.

This act would 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