The bill amends Chapter 27-7 of the General Laws by introducing a new section titled "Firearm ownership." It mandates that any individual who owns a firearm must obtain and continuously maintain a liability insurance policy with a minimum coverage of one million dollars ($1,000,000). This insurance must specifically cover damages resulting from negligent acts involving the use of the firearm while it is owned by the individual. Failure to maintain this insurance will result in the immediate revocation of the owner's registration, license, and any other privileges associated with firearm ownership.

The bill defines a firearm owner as someone who is deemed to own a firearm even if it is lost or stolen until the loss or theft is reported to the appropriate law enforcement agency. Individuals who own a firearm on the effective date of this section are required to obtain the mandated insurance within thirty (30) days of that date. Additionally, evidence of insurance must be kept where firearms are stored or when transported, and proof of liability insurance must be presented to law enforcement during lawful encounters.

Active duty law enforcement and military personnel are exempt from this insurance requirement. The Department of Business Regulation is authorized to promulgate rules and regulations necessary to implement the provisions of this section. The act will take effect upon passage.