(a)  An insurer shall provide to the first-named insured at the mailing address shown on the policy, and to the insurance producer of record, written notice of any premium increase in excess of ten percent (10%) and shall also provide the exact renewal premium, at least sixty (60) days prior to the expiration date of the policy unless the premium increase is the result of an audit or the increase is the result of an increase in exposure at the request of the insured. Not less than sixty (60) days’ written notice, as provided herein, shall be required for any coverage elimination, reduction, diminution, or increased deductible not at the request of the insured and in this case the notice shall itemize and describe the coverage changes and shall be separate from the renewal policy. If the insurer fails to provide such notice, the coverage provided to the named insured shall remain in effect until notice is provided or until the effective date of replacement coverage obtained by the named insured, whichever occurs first. For the purposes of this section, notice is considered given sixty (60) days following the date of giving of the notice. If the named insured elects not to renew, any earned premium for the period of extension of the terminated policy shall be calculated pro-rata at the lower of the current or previous year’s rate. If the insured accepts the renewal, the premium increase, if any, and other changes shall be effective the day following the prior policy’s expiration or anniversary date.

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Terms Used In Rhode Island General Laws 27-29-17.3

  • Insured: means the party named on a policy or certificate as the individuals with legal rights to the benefits provided by the policy. See Rhode Island General Laws 27-29-2
  • Insurer: means any person, reciprocal exchange, interinsurer, Lloyds insurer, fraternal benefit society, and any other legal entity engaged in the business of insurance, including agents, brokers, insurance producers, adjusters, and third-party administrators. See Rhode Island General Laws 27-29-2

(b)  This section shall not apply to changes based upon the altered nature or extent of the risk insured.

(c)  For the purposes of this section, notice to the insurance producer of record shall not apply to an insurance producer of record who:

(1)  Is an employee of the insurer; or

(2)  Is a non-employee exclusive agent of the insurer; provided, however, notice, as required by this section, shall in all applicable cases, be provided to the named insured.

History of Section.
P.L. 2003, ch. 231, § 1; P.L. 2003, ch. 251, § 1; P.L. 2011, ch. 103, § 1; P.L. 2011, ch. 153, § 1.