Rhode Island Code of Regulations
Title 230 - Department of Business Regulation
Chapter 20 - Insurance
Subchapter 05 - Personal Lines - Automobile and Homeowners Insurance
Part 13 - Property Insurance and Weather Related Claims (230-RICR-20-05-13)
Section 230-RICR-20-05-13.12 - Emergency Measures
Universal Citation: 230 RI Code of Rules 20 05 13.12
Current through September 18, 2024
A. The Insurance Division will utilize the declaration of a catastrophe by the Insurance Services Offices ("ISO") or its successor organization for purposes of the declaration of emergency measures pursuant to R.I. Gen. Laws § 27-76-6.
B. When ISO declares a catastrophe the Insurance Division may require insurers to take any of the following actions:
1. Allow grace periods for the payment of
insurance premiums for a time period established by the Insurance Division;
a. The Department will establish the time
period indicated above by considering the severity of the catastrophe and the
number and severity of claims.
b.
The Department shall order a maximum grace period of 90 days by bulletin. This
requirement does not prevent the Department from amending this Part during the
grace period to establish a longer grace period.
c. At the end of the grace period insurers
may bill insureds that have elected to take advantage of the grace period for
the premium accumulated during the grace period as long as the insurer has
notified the insured at the time of the request that premium will accumulate
during the grace period.
d.
Insurers may treat nonpayment of accumulated premium in the same manner as
nonpayment of premium under the policy as long as the insurer has notified the
insured at the time the request for the grace period is requested that the
premium will be due upon expiration of the grace period or at whatever longer
interval is established by the insurer.
2. Suspending performance of other duties
under the policy for persons displaced by the catastrophic event.
a. The insureds duty under the policy to
mitigate damages shall not be excused.
b. The Department will determine what duties
will be suspended by consideration of the severity of the catastrophe and the
number and severity of claims in Rhode Island.
c. The Department will notify insurers of the
exact duties for a specific catastrophe by issuance of a bulletin or industry
alert.
3. Suspension of
cancellations and non-renewals of insurance policies for a time period
established by the Insurance Division;
a. The
Department will establish the time period by taking into consideration the
severity of the catastrophe and the number and severity of claims.
b. The Department shall order a maximum
period of 90 days by bulletin.
c.
This requirement does not prevent the Department from moving to amend this Part
to establish a longer grace period.
d. This provision will not apply to
cancellations that were sent out prior to the hurricane but which had not yet
become effective on the date of the occurrence.
4. The Department may establish additional
emergency measures depending upon the circumstances of the catastrophe. In such
a circumstance the Department will, at the same time the bulletin or industry
alert establishing the requirement is issued, begin the process of amending
this Part to solicit comment on the emergency requirements.
Disclaimer: These regulations may not be the most recent version. Rhode Island may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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