The proposed bill introduces a new chapter, CHAPTER 8.4, titled "Homeowner Casualty Insurance Bill of Rights," to Title 27 of the General Laws concerning insurance. This chapter aims to summarize, in simple, nontechnical terms, existing Rhode Island law regarding the rights of personal residential property insurance policyholders who file a claim of loss. It mandates that insurers provide a homeowner casualty insurance bill of rights notice to policyholders within fourteen days after receiving an initial communication regarding a claim, unless the claim follows an event that is the subject of a declaration of a state of emergency by the governor.

The bill outlines specific rights for policyholders, including the right to receive acknowledgment of their reported claim within fourteen days, confirmation of claim investigations within twenty days after submitting a complete proof-of-loss statement, and full settlement payment or denial of the claim within thirty days. It also advises policyholders on necessary precautions and actions to take during the claims process.

Furthermore, the bill clarifies that the homeowner casualty insurance bill of rights is specific to the claims process and does not create a civil cause of action against insurers or modify existing statutory requirements. It includes provisions for penalties if insurers fail to properly deliver the homeowner casualty insurance bill of rights, but such failures are not admissible as evidence in civil actions against insurers. The act will take effect upon passage.