§ 27-29-13.2 - Cancellation provisions for return of unearned premium. - Rhode Island Statutes

SECTION 27-29-13.2

   § 27-29-13.2  Cancellation provisions forreturn of unearned premium. – Every insurance policy issued and approved for use in Rhode Island shallprovide clear language on the method of calculation of the unearned premiumportion to be returned to the insured if the policy is cancelled. Insurancepolicies shall not state "refer to manuals" to determine the amount of unearnedpremium to be returned. For all cancellations, the actual percentage retainedby the insurer shall be discernible in the policy cancellation provisions. Ifa policy is canceled using a short-rate table, the insurer shall provide theshort-rate table within the cancellation provisions of the insurance policy sothat an insured can make an informed decision when cancelling a policy midterm.Insurers shall not impose cancellation fees when insurance policies arecancelled using short rate tables.