(a)  All policy forms and certificates of insurance to be delivered or issued for delivery in this state and the schedules of premium rates pertaining thereto shall be filed with the commissioner.

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Terms Used In Rhode Island General Laws 27-6.1-9

  • Insurer: means an insurance company, association, or exchange authorized to issue lender-placed insurance in this state (or its affiliates). See Rhode Island General Laws 27-6.1-3
  • Lender-placed insurance: means insurance obtained by a lender or servicer when a mortgagor does not maintain valid and/or sufficient insurance upon mortgaged real property as required by the terms of the mortgage agreement. See Rhode Island General Laws 27-6.1-3
  • Loss ratio: means the ratio of incurred losses to earned premium. See Rhode Island General Laws 27-6.1-3
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
  • Real estate owned property: means property owned or held by a lender or servicer following foreclosure under the related mortgage agreement or the acceptance of a deed in lieu of foreclosure. See Rhode Island General Laws 27-6.1-3
  • servicer: includes entities involved in subservicing arrangements. See Rhode Island General Laws 27-6.1-3

(b)  The commissioner shall review the rates to determine whether the rates are excessive, inadequate, or unfairly discriminatory. This analysis shall include a determination as to whether expenses included by the insurer in the rate are appropriate.

(c)  All insurers shall re-file lender-placed property insurance rates at least once every four (4) years.

(d)  All insurers writing lender-placed insurance shall have separate rates for lender-placed insurance and voluntary insurance obtained by a mortgage servicer on real estate owned property.

(e)  Upon the introduction of a new lender-placed insurance program, the insurer shall reference its experience in existing programs in the associated filings. Nothing in this chapter shall limit an insurer’s discretion, as actuarially appropriate, to distinguish different terms, conditions, exclusions, eligibility criteria, or other unique or different characteristics. Moreover, an insurer may, where actuarially acceptable, rely upon models or, in the case of flood filings where applicable experience is not credible, on Federal Emergency Management Agency (FEMA) National Flood Insurance Program (NFIP) data.

(f)  No later than April 1 of each year, each insurer with at least one hundred thousand dollars ($100,000) in direct written premium for lender-placed insurance in this state during the prior calendar year shall report to the commissioner the following information for the prior calendar year. This report shall be separately produced for each lender-placed program and presented on both an individual-jurisdiction and countrywide basis containing the following information:

(1)  Actual loss ratio;

(2)  Earned premium;

(3)  Any aggregate schedule rating debit/credit to earned premium;

(4)  Itemized expenses;

(5)  Paid losses; and

(6)  Loss reserves, including case reserves and reserves for incurred but not reported losses.

(g)  Except in the case of lender-placed flood insurance, to which this paragraph does not apply, if an insurer experiences an annual loss ratio of less than thirty-five percent (35%) in any lender-placed program for two (2) consecutive years, it shall submit a rate filing (either adjusting its rates or supporting their continuance) to the commissioner no more than ninety (90) days after the submission of the data required pursuant to subsection (f).

(h)  Except as specifically set forth in this section, rate and form filing requirements shall be subject to the insurance laws of this state.

History of Section.
P.L. 2022, ch. 404, § 7, effective June 30, 2022; P.L. 2022, ch. 405, § 7, effective June 30, 2022.