The bill proposes the establishment of a new chapter in Title 27 of the General Laws, titled "Child-Serving Provider Liability Joint Underwriting Association." This chapter aims to address the significant difficulties faced by child-serving providers in Rhode Island in obtaining affordable and adequate liability insurance coverage. It recognizes the essential services these providers offer to children and families, including childcare, education, behavioral health services, youth development, mentoring, foster care, and recreational programming. The legislation emphasizes the public interest in ensuring the availability of liability insurance coverage for these providers, particularly those unable to procure such coverage in the voluntary insurance market.

The bill establishes a joint underwriting association as a market of last resort to provide liability insurance coverage to eligible child-serving providers who have been unable, after diligent effort, to obtain substantially equivalent coverage in the voluntary market. The association will be a nonprofit, unincorporated legal entity governed by a board of directors consisting of representatives from member insurers, child-serving organizations, and a public member with experience in child advocacy or risk management. All insurers authorized to write commercial general liability insurance in the state will be required to be members of the association.

The association will develop a plan of operation, which must be approved by the director of the Rhode Island Department of Business Regulation. This plan will include provisions for underwriting, policy issuance, claims handling, and establishing rates, rating plans, and policy forms. The association will also have the authority to assess member insurers to cover losses and expenses if its premiums and revenues are insufficient.

Additionally, the bill provides immunity protections for board members, officers, and employees of the association for actions taken in good faith while performing their duties. The association will be subject to examination by the Department of Business Regulation and will be exempt from all state and local taxes except for taxes on real and personal property. The association is required to submit an annual report to the director, the speaker of the house of representatives, and the president of the senate regarding its financial condition, underwriting experience, claims activity, and market conditions. The act will take effect upon passage.