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-20-05-13.8 - Nonrenewal, Cancellation and Premium Increases

Universal Citation: 230 RI Code of Rules 20 05 13.8

Current through September 18, 2024

A. Nonrenewal

1. No insurer shall subsequently non-renew an insured who has taken the mitigation steps requested by the insurer for reasons of the insurers exposure to catastrophe loss, unless for non-payment of premium, fraud, breach by the insured of a provision of the policy, reversal or a lack of maintenance of the mitigation steps, or insurer solvency concerns or adverse loss history or on any other grounds not prohibited by statute or regulation.

2. No insurer shall non-renew or cancel solely as a result of:
a. a policy or claim inquiry, a loss with no payout or a loss with a payout of less than $500 unless there has been more than one non-catastrophic claim in a three-year period which has resulted in a loss payout;

b. a loss sustained as a result of a catastrophic event; or

c. prior claims experience of the property while under ownership of someone other than the current insured unless the risk from which the claim originated has not been mitigated.

B. Nonrenewal Plans

1. In the following circumstances, insurers must file a comprehensive nonrenewal plan with the department at least 90 days prior to the proposed date of implementation.
a. If an insurer plans to non-renew or cancel policies for failure to comply with mitigation measures requested by the insurer.

b. If an insurer plans to non-renew a book of business or group of policies which constitute more than twenty-five percent (25%) of the insurers premium volume in the state or more than twenty-five percent (25%) of the insurers premium volume in homeowners insurance in any one building code Zone in the state.

c. If an insurer plans to non-renew contracts with agencies that will result in nonrenewal of the policies placed through those agencies which constitute more than twenty-five percent (25%) of the insurers premium volume in the state or more than twenty-five percent (25%) in homeowners insurance of the insurers premium volume in any one building code Zone in the state.

2. Comprehensive nonrenewal plans must include the following:
a. A demonstration that the proposed non-renewals are in accordance with R.I. Gen. Laws Chapter 27-76-1 and §§27-29-4(7) and 27-29-4.1.

b. The insurer must identify all plan variables (i.e. percentage of business non-renewed, the time period for full implementation of the plan, the selected methodology for individual risks to be nonrenewed, etc.) and demonstrate how each variable will be fair and reasonable to Rhode Island insureds as well as relevant and proportionate to the risk of adverse impact to the insurer.

c. This section does not apply to nonrenewal or cancellation of individual policies for specific reasons related solely to that property.

C. Cessation of New Business

1. If an insurer plans to cease writing new residential property insurance policies, a notice of that action must be filed with the Department at least ninety (90) days prior to the proposed date of implementation. The notice shall provide all implementation information (date, applicability, categories of new business the insurer will continue to write) and will demonstrate that such action is in compliance with R.I. Gen. Laws §§ 27-29-4(7)(iii) and 27-29-4.1.

D. Premium Increase or Surcharge

1. No insurer shall impose a surcharge or increase in premium solely as a result of:
a. a policy or claim inquiry, a loss with no payout or a loss with a payout of less than $500 unless there has been more than one non-catastrophic claim in a three year period which has resulted in a loss payout;

b. a loss sustained as a result of a catastrophic event; or

c. prior claims experience of the property while under ownership of someone other than the current insured unless the risk from which the claim originated has not been mitigated.

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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