The bill amends Section 27-9-4 of the General Laws in Chapter 27-9, titled "Casualty Insurance Rating," to introduce new provisions regarding the establishment of rates for motor vehicle liability insurance. Specifically, it allows insurers, effective July 1, 2027, to consider the zip code where a vehicle is garaged when calculating policy premiums, provided that the calculation is segmented by the municipality where the vehicle is garaged.

The bill outlines the following conditions for this new provision:
1. If the actuarial data within a municipal segment of the zip code supports a lower premium than the actuarial data for the zip code as a whole, the lower premium must be used.
2. If the actuarial data within a municipal segment supports a higher premium than the overall zip code, the premium derived from the overall zip code must be used.
3. The Department of Business Regulation must certify that no premium is increased as a result of this subsection; however, it may permit insurers to apply a uniform statewide increase not to exceed $0.25 per month to all premiums for motor vehicle liability insurance to cover implementation costs.

The bill also includes provisions that prohibit insurance companies from considering certain loss incidents involving bus drivers, law enforcement officers, and commercial vehicle drivers when determining rates for personal motor vehicles. It ensures that widowed individuals are treated the same as married individuals regarding insurance rates and protects seniors aged 65 and older from being penalized solely based on age if they have a clean driving record. Additionally, it establishes conditions under which insurance companies can refuse to renew policies and outlines penalties for discriminatory practices based on age.

Statutes affected:
2431: 27-9-4
2431  SUB A: 27-9-4