Insurance Regulation 97-Notice of Material Changes upon renewal of personal motor vehicle, homeowner and residential fire insurance
|Title||230||Department of Business Regulation (includes the Office of the Health Insurance Commissioner)|
|Subchapter||05||Personal Lines - Automobile and Homeowners Insurance|
|Part||14||Insurance Regulation 97-Notice of Material Changes upon renewal of personal motor vehicle, homeowner and residential fire insurance|
|Type of Filing||Amendment|
|Regulation Status||Inactive View Active Rule|
|Effective||04/30/2008 to 08/06/2008|
Regulation Authority :
R.I. Gen. Laws §§ 27-5-3.7, 27-8-11 and 42-14-17
Purpose and Reason :
This Regulation shall apply to the renewal of (1) personal lines auto insurance, (2) homeowners insurance, and (3) residential fire insurance, or any components thereof. This Regulation requires notification to insureds upon policy renewal of any material changes in policy deductibles, limits, coverages, conditions or definitions, unless the change was requested by the insured or R.I. Gen. Laws § 27-5-3.7 is applicable.
Brief statement of Reason for Finding Imminent Peril :
Notice is hereby given, in accordance with R.I. Gen. Laws 42-35-3(b), that the Department of Business Regulation (“Department”) finds an imminent peril to the public health, safety, or welfare requiring immediate adoption of amendments to Insurance Regulation 97 – Notice of Material Changes Upon Renewal of Personal Motor Vehicle, Homeowner and Residential Fire Insurance. The amendments are designed to clarify the intent of the regulation as to notice requirements; clarify that transfer between insurers within a group triggers the notice requirements and coordinate the regulation with R.I. Gen. Laws § 27-5-3.7 and Insurance Regulation 110. The amendments are shown in the notice of proposed amendment to Insurance Regulation 97 which will be issued by the Department in accordance with R.I. Gen. Laws § 42-35-3(a). The Department finds that this emergency regulation is necessary as R.I. Gen. Laws § 27-5-3.7 becomes effective for insurance policies issued or renewed after July 1, 2008. As quotes for renewal policies are commonly issued sixty (60) days prior to renewal, the public welfare would be placed in imminent peril if the regulation did not become effective immediately. The emergency adoption of these amendments remains effective for one hundred and twenty days (120) from the effective date. The Department intends to hold a public hearing on the amendments and finalize the amendments within that time period.