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NAMIC 2006 Survey of New State Insurance Laws Summary and Analysis

2006 SUMMARY OF NEW STATE LAWS - RHODE ISLAND

Rhode Island State Legislative Website

BILL #

CHAPTER #

ISSUE

BILL DESCRIPTION

HB 7042

605

Workers' compensation - benefits, claims or treatments

Increases the maximum rate for weekly compensation for total disability from 110% to 115% of the state average weekly wage and gives the workers' compensation court discretion to suspend all or part of any civil penalty. Same as SB 2912, Chapter 610. Effective: July 14, 2006.

HB 7148

226

Identity theft - security freeze

Creates the Consumer Empowerment and Identity Theft Prevention Act of 2006; provides for consumers, including business consumers, to put a security freeze on their credit; provides for the lifting of the freeze of credit, notice requirements and guidelines for the consumer reporting agency; provides that private financial information and Social Security numbers shall be less accessible; relates to credit and debit cards; provides for applicable fees, except to identity theft victims or persons over 65. Same as SB 2361, Chapter 270. Effective: varies.

HB 7167

173

Motor vehicle insurance - auto body shops

Requires insurance companies selling motor vehicle insurance within the state to conduct auto body labor rate surveys to determine the prevailing labor rates auto body repair facilities charge for vehicle repairs; provides that failure of the insurance company to comply shall result in a fine; provides that insurers may not use such survey or contract rates from facilities with which it has a formal contact to provide repair services to insureds; requires insurers to report results of the survey. Effective: June 23, 2006.

HB 7168

42

Motor vehicle insurance - auto body shops

Relates to motor vehicle damage appraisers; provides boldface type notice that a consumer has the right to choose an auto repair facility and that insurance agencies may not interfere with the consumer's choice of repairer. Effective: June 1, 2006.

HB 7169

43

Motor vehicle insurance - auto body shops

Requires automobile body repair shops to display a boldface sign in a conspicuous place notifying consumers that insurance companies may not interfere with the consumer's choice of automobile repairer; provides that the department of business regulation may deny an application for license or suspend or revoke a repairer's license for violation of a consumer's rights. Effective: June 1, 2006.

HB 7170

184

Motor vehicle insurance - auto body shops

Requires the licensing advisory board to establish minimum requirements for licensing of auto repair technicians. Effective: June 29, 2006.

HB 7172

215

Workers' compensation - contractor requirements

Mandates proof of workers' compensation coverage for either a professional employer organization or a client; requires notification of cancellation; provides for tax record confidentiality; provides for such organizations domiciled out of state; provides that a certificate of insurance as proof of worker's compensation coverage shall be issued to the client with notice of cancellation to be issued immediately to either entity. Effective: July 3, 2006.

HB 7180

158

Property insurance

Relates to the Federal Riot Reinsurance Reimbursement Fund; includes broad and special form dwelling coverages commonly referred to as DP-2 and DP-3 personal articles floater in the definition of basic property insurance. Effective: Jan. 1, 2007/

HB 7348

131

Guaranty fund

Amends the Insurers' Insolvency Fund; allows borrowing among the three separate accounts of the state Insurers' Insolvency Fund, the workers' compensation insurance account, the automobile insurance account and the account for all other insurance to which the chapter applies. Same as SB 2737, Chapter 111. Effective: June 16, 2006.

HB 7469

92

Producer licensure -- miscellaneous

Requires all resident insurance producers to obtain error and omission insurance; provides that this act would not apply to producers employed directly by insurance companies. Same as SB 2588, Chapter 154. Effective: Jan. 1, 2007.

HB 7470

93

Producer licensure -- miscellaneous

Revises insurance producer licensing statutes removing the prohibition against the formation of branch offices for producers; modifies the information required to be included on a producer license; clarifies the requirements for payment of producer override commissions; moves the specific producer continuing education requirements from statute to regulation. Same as SB 2589, Chapter 84. Effective: Varies.

HB 7651

138

Commercial insurance

Modifies the criteria required when classifying commercial special risk by commercial lines insurers. Same as SB 2585, Chapter 108. Effective: June 16, 2006.

HB 7659

98

State regulation

Establishes that the Department of Business Regulation has the authority to enforce statutes governing specified insurance licensees even though the statutes granting the licenses do not appear in existing law relating to insurance. Effective: June 13, 2006.

HB 7674

558

E-commerce

Creates the Internet Misrepresentation of Business Affiliation Act; prohibits a person by means of a webpage or electronic mail message, unlawfully induce another to provide identifying information; includes a social security number, driver's license, bank account number, credit or debit card number, electronic signature, biometric data and account passwords; relates to a partnership, limited liability company and joint ventures; provides for damages and reasonable attorney fees and court costs. Effective: July 10, 2006.

HB 7705

621

Motor vehicle insurance - auto body shops

Requires insurers and auto body repair shops to provide written notice to a vehicle owner that he or she is entitled to the original equipment manufacturer parts in the repair of a motor vehicle body replacement part. Effective: Jan. 1, 2007.

HB 7779

348

Resolutions

Resolution opposes to federal preemptive insurance regulatory measures. Effective: June 23, 2006.

SB 40

161

Guaranty fund

Allows borrowing among the three separate accounts of the Rhode Island Insurers Insolvency Fund: (1) the workers' compensation insurance account; (2) the automobile insurance account; (3) the account for all other insurance; establishes a joint study commission to study workers' compensation. Effective: July 6, 2006. .

SB 41

191

Producer licensure -- adjusters

Amends the general laws to authorize the insurance commissioner to permit experienced adjusters not licensed in Rhode Island to engage in emergency insurance adjustment work for losses in Rhode Island in the event of an emergency as determined by the commissioner, or the declaration of a state of disaster by the governor or the president of the United States. Effective: 7/76/2006.

SB 2055

639

Motor vehicle insurance - salvage title

Relates to certificates of title and security interests. Effective: July 14, 2006.

SB 2072

235

Motor vehicle insurance - traffic offenses

Relates to refusal to submit to a chemical test; district court and traffic tribunal judges; annual impaired driving report. Same as HB 6700, Chapter 232. Effective: June 28, 2006.

SB 2153

637

Workers' compensation - fund management

Repeals annual report of activities to the Legislature. Effective: July 14, 2006.

SB 2302

106

Motor vehicle insurance - traffic safety

Relates to uniform safe driver program. Same as HB 7353, Chapter 132. Effective: June 16, 2006.

SB 2451

322

Motor vehicle insurance - teen drivers

Prohibits use of cell phones by minors while driving. Same as HB 7372, Chapter 186. Effective: July 4, 2006.

SB 2735

632

Producer licensure -- miscellaneous

Relates to surplus lines brokers and inability to obtain insurance. Effective: July 14, 2006.

SB 2970

350

Motor vehicle insurance - traffic offenses

Driving under the influence of liquor or drugs. Same as HB 7931, Chapter 474. Effective: July 1, 2006.

The information contained in this summary is not intended as a portrayal of every property/casualty-related law enacted in each state. Rather, it represents recently enacted legislation specifically identified by NAMIC State and Regulatory Affairs Staff as bearing direct relevance to those issues that represent NAMIC's National State Legislative Agenda or otherwise deemed pertinent to the interests of the majority of NAMIC members.

This summary is for use as a convenient tool for our members, and is not intended, and should not be considered to be, legal advice. Please consult your legal representatives.