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 for insolvencies occurring after January 1, 2026. The bill also clarifies the association's obligations regarding claims payments and assessments of member insurers, including the right to contest settlements made by insolvent insurers.

Additionally, the bill amends Section 27-76-2 to require insurance companies to provide clear notice about hurricane deductibles, while removing previous exemptions for insureds who installed approved mitigation measures.

Furthermore, the bill introduces the "Strengthen Rhody Homes Program" within the Department of Business Regulation, aimed at providing financial assistance to residential property owners for resilience construction against hurricanes and other catastrophic events. Insurers are required to offer premium discounts for properties certified under the Insurance Institute for Business and Home Safety (IBHS) standards, contingent on actuarial justification.

The bill establishes a revolving fund for the program, prioritizing grant applications from lower-income applicants and those in high-risk areas. It also includes provisions for the program's administration, eligibility requirements for grant applicants, and the responsibilities of contractors and evaluators involved in the program.

The act repeals the existing Rhode Island Commission on Hurricane Loss Projection Methodology, including provisions regarding the appointment and compensation of commission members, liability protections, and the requirement for annual actuarial methods adoption. The act is set to take effect upon passage.

Statutes affected:
604: 27-34-8, 27-76-2, 27-5-3.8