§ 27-33-10 - "Basic property insurance" defined. - Rhode Island Statutes

SECTION 27-33-10

   § 27-33-10  "Basic property insurance"defined. – "Basic property insurance" for the purposes of this chapter means fire,extended coverage, vandalism, malicious mischief, broad and special formdwelling coverage commonly referred to as DP-2 and DP-3, and sprinkler leakageinsurance. It shall also include homeowners package coverages which includedwelling and tenant forms, as well as the general liability coverages for one(1) to four (4) family owner and nonowner occupied dwellings, either byendorsement or as a stand-alone policy. The FAIR Plan shall be authorized tomake rate filings using the standard that rates shall not be excessive,inadequate or unfairly discriminatory, giving due consideration to the past andprospective loss and expense experience for basic property insurance, writtenin this state, trends in the frequency and severity of losses, the investmentincome of the FAIR Plan, and such other information as the director of businessregulation may require. All rates shall be calculated to be self-supportingconsistent with sound actuarial principles. Rates for basic property insuranceshall be approved by the department of business regulation, notwithstanding anylimits on rate approval authority. Nothing in this section shall be deemed toaffect the duty of licensed insurers in the state of Rhode Island toparticipate, as needed, on a direct basis, in the program pursuant to§§ 27-33-2 and 27-33-11 and any rules and regulations promulgatedthereunder, and to pay their proportionate share of losses and expensesincurred by the program upon assessment by the program.