§ 27-6-8.1 - Rating for nonbusiness policies. - Rhode Island Statutes

SECTION 27-6-8.1

   § 27-6-8.1  Rating for nonbusinesspolicies. – (a) Notwithstanding the requirements of § 27-6-8, a filing made by aninsurer under this section that provides for an overall statewide rate increaseor decrease of no more than five percent (5%) in the aggregate for allcoverages that are subject to the filing may take effect the date it is filed.The five percent (5%) limitation does not apply on an individual insured basis.No more than one rate filing may be made by an insurer pursuant to theexpedited process provided in this subsection during any twelve (12) monthperiod, unless a rate filing, when combined with any other rate filing orfilings made by an insurer within the preceding twelve (12) months, does notresult in an overall statewide increase or decrease of more than five percent(5%) in the aggregate for all coverages that are subject to the filing.

   (b) Rate filings falling outside of the limitation providedfor in subsection (a) of this section shall be subject to § 27-6-11,unless those filings are other exempt from those provisions pursuant to anothersection of the insurance code.

   (c) A filing submitted pursuant to subsection (a) of thissection is considered to comply with state law. However, if the commissioner ofinsurance determines that the filing is inadequate or unfairly discriminatory,he/she shall issue a written order specifying in detail the provisions of theinsurance code the insurer has violated and the reasons the filing isinadequate or unfairly discriminatory and stating a reasonable future date onwhich the filing is to be considered no longer effective. An order by thecommissioner pursuant to this subsection that is issued more than thirty (30)days from the date on which the commissioner received the rate filing isprospective only and does not affect any contract issued or made before theeffective date of the order. For purposes of this act, "unfairlydiscriminatory" means a rate for a risk that is classified in whole or in parton the basis of race, color, creed or national origin.

   (d) No rate increase within the limitation specified insubsection (a) of this section may be implemented with regard to an individualexisting policy, unless the increase is applied at the time of a renewal orconditional renewal of an existing policy and the insurer, at least thirty (30)days in advance of the end of the insured's policy period, mails or delivers tothe named insured, at the address shown in the policy, a written notice thatclearly and conspicuously discloses its intention to change the rate. A noticeof renewal or conditional renewal that clearly and conspicuously discloses therenewal premium applicable to the policy shall be deemed to be in compliancewith this subsection.