Rhode Island § 27-8-11 - Casualty Insurance Generally

§ 27-8-11. Regulations on cancellation and renewal.

(a) In addition to, and not in lieu of, any other power the commissioner has to issue rules and regulations, the commissioner of insurance may promulgate, in accordance with the procedure established in chapter 35 of title 42, reasonable rules and regulations concerning cancellation and renewal of liability and property damage insurance for automobiles rated as private passenger automobiles, homeowners insurance, residential fire insurance, or any components thereof. Those regulations may require that the insurer shall furnish to the named insured the reason, or reasons, for cancellation or nonrenewal. Those regulations shall also require that the insurer furnish, at least thirty (30) days prior to renewal, written notice of any coverage reductions, elimination, or increased deductibles not made at the request of the insured. The notice shall itemize and describe the policy coverage reductions, elimination, or increased deductibles and shall be captioned “NOTICE OF REDUCTION IN COVERAGE”. The policyholder shall be notified that the policy renewal contains the “NOTICE OF REDUCTION IN COVERAGE” by one of the following manners:

(1) By mailing the “NOTICE OF REDUCTION IN COVERAGE” separate from the renewal policy package mailing; or

(2) By printing “NOTICE OF REDUCTION IN COVERAGE ENCLOSED” on the renewal policy package envelope and including said reductions in the first few pages of the renewal policy package; or

(3) By printing “NOTICE OF REDUCTION IN COVERAGE ENCLOSED” on the first page of the renewal policy package; or

(4) If the renewal policy package is made available by email, the email notifying the policyholder of the renewal shall contain a statement that the policy contains a “NOTICE OF REDUCTION IN COVERAGE” and said reductions shall be in the first few pages of the renewal policy package.

These coverage changes must be approved by the insurance division with respect to those types of insurance defined in § 27-8-1(1) — (8), issued to non-business insureds and bodily injury and property damage liability coverage issued to non-business insureds. There shall be no liability on the part of, and no cause of action of any nature shall arise against, the commissioner of insurance or any insurer, their authorized representatives, agents, or employees, or any firm, person, or corporation furnishing to the insurer or commissioner information as to the reasons for cancellation or nonrenewal; for any statement made by any of them in any written notice of cancellation or nonrenewal; or in any other communication, oral or written, specifying the reasons for cancellation or nonrenewal; or for the providing of information pertaining to the cancellation or nonrenewal; or for statements made, or evidence submitted, at any hearing conducted in connection with the cancellation or nonrenewal.

(b) The commissioner shall promulgate regulations with respect to personal motor vehicle insurance, homeowners insurance, and residential fire insurance, or any components of that insurance requiring notification to policyholders upon renewal of any coverage reductions, elimination, or increased deductibles not at the request of the insured.