§ 27-7.1-11.1 - Challenge and review of application of rating system. - Rhode Island Statutes

SECTION 27-7.1-11.1

   § 27-7.1-11.1  Challenge and review ofapplication of rating system. – (a) An advisory organization and every insurer subject to this chapter whichmakes its own rate shall provide within this state reasonable means where anyperson aggrieved by the application of its rating system may upon that person'swritten request be heard in person or by the person's authorized representativeto review the manner in which the rating system has been applied in connectionwith the insurance afforded the aggrieved person.

   (b) Any party affected by the action of an advisoryorganization or the insurer may, within thirty (30) days after written noticeof that action, make application, in writing, for an appeal to the director,setting forth the basis for the appeal and the grounds to be relied upon by theapplicant. If the advisory organization or insurer fails to grant or reject therequest within thirty (30) days after it is made, the applicant may proceed inthe same manner as if the application has been rejected.

   (c) The director shall review the application and, if thedirector finds that the application is made in good faith and that it setsforth on its face grounds which reasonably justify holding a hearing, thedirector shall conduct a hearing held not less than ten (10) days after writtennotice to the applicant and to an advisory organization or insurer. Thedirector, after a hearing, shall affirm or reverse the action of an advisoryorganization or insurer.

   (d) If, after a hearing held under this section, it isdetermined that the rates charged by an insurer are in excess of theappropriate rate, the overcharge shall be refunded to the insured.