Rhode Island: Final Version of Coastal Regulations Reflects NAMIC-advocated Change

The final versions of regulations implementing coastal property insurance legislation reflect changes advocated by NAMIC when the regulations were first promulgated by the Department of Business Regulation on an emergency basis.

NAMIC urged regulators in comments submitted June 5 to remove language in Regulation 110 that would have allowed hurricane deductibles to be applied only if a storm is classified as a hurricane “at the time it makes landfall within the State of Rhode Island.” Since the statute that the regulation is implementing contains a clear trigger that does not include the “landfall” requirement, the regulation as originally drafted was inconsistent with the statute.

The final version of Regulation 110 does not contain the landfall requirement, as noted in the department’s explanatory statement.

“This change removes a serious conflict that would have resulted in confusion and likely litigation in the wake of a potentially triggering event,” noted Paul Tetrault, Northeast state affairs manager for NAMIC. “The department is to be commended for recognizing this and making the change accordingly.”

The DBR also made a change to Regulation 97 regarding notice requirements for material changes consistent with a NAMIC recommendation to remove a provision that would have made failure to provide notice a regulatory violation even if the change in coverage was beneficial for the insured.

NAMIC has advocated both in the legislative and regulatory arenas against the implementation of rules and laws that would limit Rhode Island property insurers in their ability to manage their books of business and protect against exposure to catastrophic risk.

Direct questions to NAMIC State Affairs Manager Paul Tetrault.

Posted: Tuesday, August 12, 2008 12:00:00 AM. Modified: Tuesday, August 12, 2008 9:47:26 AM.

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We are 1,400 property/casualty insurance companies serving more than 135 million auto, home and business policyholders, with more than $196 billion in premiums accounting for 50 percent of the automobile/homeowners market and 31 percent of the business insurance market. We are the largest and most diverse property/casualty trade association in the country, with regional and local mutual insurance companies on main streets across America joining many of the country’s largest national insurers who also call NAMIC their home. More than 200,000 people are employed by NAMIC members.