Rhode Island Code of Regulations
Title 230 - Department of Business Regulation
Chapter 20 - Insurance
Subchapter 40 - Claims
Part 2 - Unfair Property/Casualty Claims Settlement Practices
Section 230-RICR-20-40-2.9 - Standards for Prompt, Fair and Equitable Settlements Applicable to Fire and Extended Coverage Type Policies with Replacement Cost Coverage

1. When the insurance policy provides for the adjustment and settlement of first party claimant losses based on replacement cost, the following shall apply:

1. When the insurance policy provides for the adjustment and settlement of losses on an actual cash value basis on residential fire and extended coverage, the Insurer shall determine actual cash value as follows: replacement cost of property at time of loss less depreciation, if any. Upon the first party claimant's request, the insurer shall provide a copy of the claim file worksheet(s) detailing any and all deductions for depreciation.

2. In cases in which the first party claimant's interest is limited because the property has nominal or no economic value, or a value disproportionate to replacement cost less depreciation, the determination of actual cash value as set forth above is not required. In such cases, the insurer shall provide, upon the first party claimant's request, a written explanation of the basis for limiting the amount of recovery along the amount payable under the policy.