This bill introduces comprehensive amendments to the General Laws in various chapters related to insurance, including the "Producer Licensing Act," the Rhode Island Life and Health Insurance Guaranty Association Act, and the establishment of the "Insurance Data Security Act." It revises definitions, notification requirements, confidentiality provisions, penalties, and the powers and duties of insurance associations and the commissioner. The bill adds new definitions such as "entity," "license," and "line credit insurance," while removing the definition for "producer report." It also requires insurers to notify the insurance commissioner within 30 days of terminating a relationship with an insurance producer and to provide a copy of this notification to the producer. The bill grants immunity from civil liability to insurers, insurance producers, and the insurance commissioner, provided there is no actual malice involved, and establishes confidentiality for documents obtained in investigations.

The bill further outlines the powers of the Rhode Island life and health insurance guaranty association, including the ability to guarantee, assume, reissue, or reinsure policies of impaired or insolvent insurers. It increases the number of member insurers on the board of directors and specifies the association's obligations in providing coverage. The bill also amends the law regarding assessments for impaired or insolvent insurers, setting two classes of assessments and limitations on the total amount. Additionally, it specifies the commissioner's duties and powers, including maintaining the confidentiality of association information and the ability to suspend or revoke certificates of authority for non-compliance.

The bill introduces the "Pet Insurance Act," which sets forth a legal framework for pet insurance policies, including definitions, disclosure requirements, and consumer rights. It mandates that pet insurers disclose how claim payments are determined and any policy exclusions or limitations. The bill also addresses the sale of wellness programs, distinguishing them from pet insurance and requiring separate disclosure that they are not insurance. Insurance producers must be licensed and trained before selling pet insurance products. The bill includes various insertions, such as adding "Vision only insurance" and "Medicare Supplement insurance" to the definition of "insurer," and deletions, such as removing "A health maintenance organization" from the definition of "member insurer." Lastly, the bill establishes state standards for data security and the investigation of cybersecurity events, requiring licensees to develop information security programs and report cybersecurity events to the commissioner.

Statutes affected:
5832: 27-10-1.1, 27-13.1-7, 42-14-5