Rhode Island: Coastal Commission Session Planned; DBR Issues Bulletin to Implement Coastal Legislation

The House commission formed to study the effects of natural disasters on the homeowners insurance market will renew its activity on Dec. 13 at 4 p.m. at Charlestown Town Hall.

The commission has posted an agenda indicating that it will discuss the commissioned report by the modeling firm AIR Worldwide as well as a bulletin issued by the state’s Department of Business Regulation. The commission will also elect a new chairman, an action necessitated by the death of Rep. Paul Crowley in September.

Last year, the commission hosted presentations by insurers, modeling firms, the state’s FAIR Plan, and reinsurers in an effort to identify the factors behind changes in the property insurance marketplace resulting in nonrenewals and rate increases.

The commission is charged with issuing a report by March 2008, but its members issued several legislative proposals last session. One proposal enacted calls for a study of insurer catastrophe models and requires insurers to disclose use of models. Another establishes certain limitations on insurers’ use of percentage windstorm deductibles and mitigation measures for policies issued or renewed after July 1, 2008; requires flat dollar deductibles rather than percentage deductibles when insureds undertake mitigation measures; and limits insurers’ ability to nonrenew accounts after requiring mitigation measures.

The DBR issued Bulletin 2007-9 implementing the coastal legislation passed in the last session on Nov. 29, 2007.

NAMIC will remain engaged in the work of the commission with the goal of ensuring that further legislative proposals do not have the effect of making market conditions worse rather than better.

Direct questions to NAMIC State Affairs Manager Paul Tetrault.

Posted: Tuesday, December 04, 2007 12:00:00 AM. Modified: Tuesday, December 04, 2007 10:58:54 AM.

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