Rhode Island: Deductibles Legislation Moving in House and Senate

Bills that would regulate property insurers’ use of deductibles and mitigation requirements were moving quickly through the House and Senate last week with only days left in the legislative session.

Both the House and Senate approved legislation that would establish notice requirements and conditions and restrictions on insurers’ use of mitigation requirements. It was not clear as of press time whether differences in the House and Senate versions would be resolved by the end of the session.

NAMIC testified in opposition to the original version of H-6468 before the House Corporations Committee, cautioning lawmakers generally against adopting measures that would hurt rather than help the Ocean State’s coastal property insurance market. Corporations Committee Chairman Brian Patrick Kennedy worked with insurers and the Department of Business Regulation to make a number of changes to make the legislation less problematic for insurers seeking to take steps to manage their coastal exposure. The committee approved an amended version on June 19. The full House approved a further amended version on June 21.

On the Senate side, the Senate Corporations Committee approved an amended version of S-1110 on June 21 and referred it to the House Corporations Committee for hearing and action on June 22.

The House committee also advanced a bill to establish a commission to review catastrophe models after it was made clear that its intent was not to establish a state catastrophe fund. The bill, H-6503, was subsequently approved by the House and forwarded to the Senate Corporations Committee where it was to be heard on June 22.

“There is considerable support for getting something passed this session in response to coastal market concerns,” commented Paul Tetrault, NAMIC’s Northeast state affairs manager. “Fortunately, some of the worst ideas seem to have been put to rest and changes have been secured to make remaining bills less problematic.”

Direct questions to NAMIC State Affairs Manager Paul Tetrault.

Posted: Tuesday, June 26, 2007 12:00:00 AM. Modified: Tuesday, June 26, 2007 11:01:53 AM.

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