§ 27-2-23 - Discrimination in rates prohibited. - Rhode Island Statutes

SECTION 27-2-23

   § 27-2-23  Discrimination in ratesprohibited. – (a) No foreign insurance company licensed to do or doing business in this stateshall make any distinction or discrimination as to the premiums or ratescharged for policies of casualty, fire, home owners, accident and health, ormarine insurance, nor shall any 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 company make orrequire any rebate, diminution, or discount upon the sum to be paid on anypolicy based on any disability discrimination, nor insert in the policy anycondition, nor make any stipulation, where the person insured shall bindhimself or herself, his or her heirs, executors, administrators, and assigns,to accept any less sum than the full value or amount of the policy in case of aclaim accruing on the policy by reason of the claim of the person insured,other than conditions or stipulations as are imposed upon all persons insimilar cases, and any stipulation or condition made in this manner or insertedshall be void.

   (b) No foreign insurance company licensed to do or doingbusiness in this state shall make any distinction or discrimination as to thepremiums or rates charged for automobile insurance policies, nor shall thecompany make or permit the rejection of an individual's application forinsurance coverage, and the determination of the rate class of the individual,solely on the basis of a disability or the modification of the automobile withspecialized equipment that permits an individual with a disability to operatethe automobile, unless the disability or modification of the automobile isrelevant to the risk of loss, nor shall any insurance company make or requireany rebate, diminution, or discount upon the sum to be paid on any policy basedon any disability discrimination, nor insert in the policy any condition, normake any stipulation, where the person insured shall bind himself or herself,his or her heirs, executors, administrators, and assigns, to accept any lesssum than the full value or amount of the policy in case of a claim accruing onthe policy by reason of the claim of the person insured, other than conditionsor stipulations as are imposed upon all persons in similar cases, and anystipulation or condition made or inserted shall be void. The department ofbusiness regulation shall enforce the provisions of this section.