§ 27-9.1-1. Purpose. The purpose of this chapter is to set forth standards for the investigation and disposition of claims arising under policies or certificates of insurance issued to residents of Rhode Island. It is not intended to cover claims involving workers’ compensation, fidelity, suretyship or boiler and machinery insurance. Nothing contained in this chapter […]
§ 27-9.1-2. Definitions. When used in this chapter: (1) “Director” means the director of business regulation; (2) “Insured” means the party named on a policy or certificate as the individual with legal rights to the benefits provided by the policy; (3) “Insurer” means any person, reciprocal exchange, inter-insurer, Lloyds insurer, fraternal benefit society, and any […]
§ 27-9.1-3. Unfair claims settlement practices prohibited. It is an improper claims practice for any domestic, foreign, or alien insurer transacting business in this state to commit any act defined in § 27-9.1-4 of this chapter if: (1) It is committed flagrantly and in conscious disregard of this chapter or any rules promulgated pursuant to […]
§ 27-9.1-4. “Unfair claims practices” defined. (a) Any of the following acts by an insurer, if committed in violation of § 27-9.1-3, constitutes an unfair claims practice: (1) Misrepresenting to claimants and insured relevant facts or policy provisions relating to coverage at issue; (2) Failing to acknowledge and act with reasonable promptness upon pertinent communications […]
§ 27-9.1-4.1. Amounts received in settlement of claims retained for unpaid premiums. (a) Any insurance company or insurance producer may retain an amount equal to any unpaid premiums due on the policy under which a claim is being presented when settling any presented claim for an insured; provided, that: (1) The unpaid premium remains unpaid […]
§ 27-9.1-5. Response and statement of charges. The director shall provide an initial response within two (2) weeks to any written consumer complaint containing specific and credible allegation of an unfair claims settlement practice punishable pursuant to this chapter. Whenever the director has reasonable cause to believe that any insurer doing business in this state […]
§ 27-9.1-6. Cease and desist and penalty orders. If, after a hearing, the director finds an insurer has engaged in an unfair claims practice, the director shall reduce the findings to writing and shall issue and cause to be served upon the insurer charged with the violation a copy of the findings and an order […]
§ 27-9.1-7. Penalty for violation of cease and desist orders. Any insurer which violates a cease and desist order of the director and, while the order is in effect, may, after notice and hearing and upon order of the director, be subject, at the discretion of the director, to: (1) A monetary penalty of not […]
§ 27-9.1-8. Regulations. The director may, after notice and a hearing, promulgate reasonable rules, regulations, and orders as are necessary or proper to carry out and effectuate the provisions of this chapter. The regulations shall be subject to review in accordance with § 42-35-7. History of Section.P.L. 1993, ch. 37, § 1; P.L. 1993, ch. […]
§ 27-9.1-9. Severability. If any provision of this chapter or the application of the provision to any person or circumstances shall be held invalid, the remainder of the chapter and the application of the provision to any person or circumstances other than those as to which it is held invalid shall not be affected by […]
