Rhode Island: Coastal Commission Members Focus on Deductibles, Market Conditions

In a brief session that reviewed past activities rather than plans for further work, the House commission formed to investigate the coastal insurance situation focused on the issues of windstorm percentage deductibles and the status of the reinsurance marketplace.

The session, held on Jan. 9, started with a moment of silence for Rep. Paul Crowley, who had served as chairman of the panel until his death on Sept. 24, and the election of new officers including Rep. John Patrick Shanley as chairman.

Superintendent of Insurance Joe Torti provided commission members with an update on a Department of Business Regulation bulletin that implemented coastal insurance-related legislation last year.

Commission members asked several questions about steps the department was taking to ensure that companies would follow the statutory requirement to provide notice of percentage deductibles in a clear fashion and with examples. Rep. Peter Lewis noted that awareness regarding percentage deductibles was one of the top concerns he had heard about from consumers. The commission members and Torti discussed the fact that not all companies utilized percentage deductibles and that many required deductibles less than the maximum allowed 5 percent.

Torti was also asked about the state of the reinsurance market in light of the fact that rising reinsurance prices had been cited as a driver of challenges in the coastal property insurance market. He reported that there had been indications that the most recent renewals had seen a small decrease in price level.

In a move that seemed to signal the commission had reached the conclusion of its work, Shanley thanked the commission members for their efforts, naming each one individually, and did not refer to any plans for additional meetings of the commission.

There was, however, an indication that additional coastal insurance-related legislation would be considered this session, as Rep. Brian Patrick Kennedy, chairman of the House Corporations Committee, cited the potential need to address commercial property insurance issues.

Direct questions to NAMIC State Affairs Manager Paul Tetrault.

Posted: Tuesday, January 15, 2008 12:00:00 AM. Modified: Tuesday, January 15, 2008 10:50:20 AM.

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