Rhode Island Code of Regulations
Title 230 - Department of Business Regulation
Chapter 20 - Insurance
Subchapter 05 - Personal Lines - Automobile and Homeowners Insurance
Part 3 - Automobile Insurance Rating
Section 230-RICR-20-05-3.7 - Premium Surcharges

A. No insurer shall charge a higher premium as a result of any loss for which a surcharge is prohibited by R.I. Gen. Laws §§ 27-9-4 and 27-9-53 or § 3.8 of this Part. No insurer shall use a prior carrier type (i.e. standard, non-standard or preferred) for the placement of an insured into a tier or company or use for discount/surcharge programs.

B. No insurer may establish a premium surcharge or penalty, remove a discount, decline an award of credits, tier or retier, or place an insured with a member insurer or otherwise alter premium for any loss(es) other than a Chargeable Accident or Moving Violation. Insurers may not establish "loss free discounts" or "tiers" which take into account losses which are not Chargeable Accident(s) or Moving Violation(s) as defined in this Part, and/or which occurred more than three (3) years prior to the effective date of the policy.

C. No insurer may charge an increased premium (including an increase in premium which occurs by moving the insured into or out of a "tier") or eliminate a discount solely as a result of an insured being sixty-five (65) years or older, as prohibited by R.I. Gen. Laws § 27-9-4(a)(5).

D. Any premium increases for a permitted purpose shall be instituted only at renewal of the policy. This does not apply to alterations of the underlying risk, in which case the premium may be altered but only to account for the alteration of the risk.

E. An insurance policy is not subject to a surcharge solely because of the filing of a certificate of financial responsibility with the Rhode Island Division of Motor Vehicles on behalf of a minor pursuant to R.I. Gen. Laws § 31-33-11.

F. Insurers shall notify the insured if a loss has affected the premium charged to the insured including how the insurer determined that the loss was chargeable.

G. Insurers shall have procedures to assure that information regarding losses as chargeable or nonchargeable is correct. If an insurer determines that coding or reporting of a loss as chargeable or nonchargeable is incorrect, the insurer shall promptly notify all to whom that information has been previously transmitted and shall adjust premium for all affected insureds whether or not the policy has terminated.