§ 27-1-39 - Discrimination in rates prohibited. - Rhode Island Statutes

SECTION 27-1-39

   § 27-1-39  Discrimination in ratesprohibited. – (a) No insurance company organized to do business within this state shall makeany distinction or discrimination as to the premiums or rates charged forpolicies of casualty, fire, home owners, accident and health, or marineinsurance, nor shall the company make or permit the rejection of anindividual's application for insurance coverage, and the determination of therate class for the individual, solely on the basis of a disability unless thedisability is relevant to the risk of loss, nor shall any insurance companymake or require any rebate, diminution, or discount upon the sum to be paid onany policy based on any disability discrimination, nor insert in the policy anycondition nor make any stipulation, where the person insured shall bind himselfor herself, his or her heirs, executors, administrators, and assigns, to acceptany less sum than the full value or amount of the policy in case of a claimaccruing on the policy by reason of the claim of the person insured, other thanthose stipulations or conditions as are imposed upon all persons in similarcases, and any stipulation or condition made in this manner or inserted shallbe void.

   (b) No insurance company organized to do business within thisstate shall make any distinction or discrimination as to the premiums or ratescharged for automobile insurance policies, nor shall the company make or permitthe rejection of an individual's application for insurance coverage, and thedetermination of the rate class of the individual, solely on the basis of adisability or the modification of the automobile with specialized equipmentthat permits an individual with a disability to operate the automobile, unlessthe disability or modification of the automobile is relevant to the risk orloss, nor shall any insurance company make or require any rebate, diminution,or discount upon the sum to be paid on any policy based on any disabilitydiscrimination, nor insert in the policy any condition nor make any stipulationwhere the person insured shall bind himself or herself, his or her heirs,executors, administrators, and assigns, to accept any less sum than the fullvalue or amount of the policy in case of a claim accruing on the policy byreason of the claim of the person insured, other than those stipulations orconditions as are imposed upon all persons in similar cases, and anystipulation or condition made in this manner or inserted shall be void. Thedepartment of business regulation shall enforce the provisions of this section.