The bill amends the Rhode Island General Laws to enhance the powers and duties of the Rhode Island Property and Casualty Insurance Guaranty Association. A key provision introduces a new obligation for the association to cover first-party property loss claims up to one million dollars for both commercial and residential policies in cases of insurer insolvency occurring after January 1, 2026. The bill also clarifies that the association's liability will not exceed the limits of the insolvent insurer's policy and outlines the assessment procedures for member insurers to fulfill these obligations.

Additionally, the bill establishes the "Strengthen Rhody Homes Program" within the Department of Business Regulation, aimed at providing financial assistance for resilience construction to make residential properties more resilient to hurricanes and other catastrophic events. The program may apply for financial grants to construct or retrofit insurable properties and can also make grants available to nonprofit entities for similar projects. Insurers are required to offer premium discounts for properties that have received an Insurance Institute for Business and Home Safety (IBHS) Certificate for specific construction standards, provided the discounts are actuarially justified and supported by credible evidence of cost savings.

The bill 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 funding sources. Furthermore, the bill repeals the existing Rhode Island Commission on Hurricane Loss Projection Methodology, indicating a shift in managing hurricane loss projections. The legislation aims to improve the resilience of residential properties while providing a structured framework for financial assistance and compliance.

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