§ 27-9-4. Considerations in making of rates — Cancellation of policy. [Effective until January
1, 2026.]
(a) All rates shall be made in accordance with the following provisions:
(1)(i) Due consideration shall be given to past and prospective loss experience within and
outside this state, to catastrophe hazards, if any, to a reasonable margin for underwriting
profit and contingencies, to dividends, savings, or unabsorbed premium deposits allowed
or returned by insurers to their policyholders, members, or subscribers, to past and
prospective expenses both countrywide and those specially applicable to this state,
and to all other relevant factors within and outside this state; provided, that no
consideration shall be given to:
(A) Any loss or incident involving a bus driver, while in the course of the bus driver's
employment for the Rhode Island public transit authority or private or municipal school
bus companies, in establishing or maintaining that driver's rate respecting the operation
of a personal motor vehicle or vehicles;
(B) Any loss or incident involving a law enforcement officer, while in the course of the
law enforcement officer's employment for the state, city, town police departments,
or federal law enforcement agency, in establishing or maintaining that driver's rate
respecting the operation of a personal motor vehicle or vehicles; and
(C) Any loss or incident involving a commercial vehicle driver, while in the course of
the commercial vehicle driver's employment, in establishing or maintaining that driver's
rate respecting the operation of a personal motor vehicle(s);
(ii) It shall be the responsibility of a commercial vehicle driver to provide the commercial
vehicle driver's insurance company with proof that the loss or incident took place
in the course of employment while operating a commercial vehicle. For the purposes
of this section, a "commercial vehicle� shall be a motor vehicle with a gross weight
in excess of ten thousand pounds (10,000 lbs.) or a motor vehicle used for public
livery;
(2) The systems of expense provisions included in the rates for use by any insurer or
group of insurers may differ from those of other insurers or groups of insurers to
reflect the requirements of the operating methods of any insurer or group with respect
to any kind of insurance, or with respect to any subdivision or combination of insurance
for which subdivision or combination separate expense provisions are applicable;
(3) Risks may be grouped by classifications for the establishment of rates and minimum
premiums;
(4) Rates shall not be excessive, inadequate, or unfairly discriminatory;
(5) For any policy written, delivered, or renewed on or after January 1, 2025, in establishing
or maintaining an insured's rate or classification respecting the operation of a personal
motor vehicle, widowed persons shall not be treated differently than persons in a
marriage; and
(6) In establishing or maintaining an insured's rate or classification respecting the
operation of a personal motor vehicle, any insured sixty-five (65) years of age or
older, who meets the criteria set forth in this section and has not had any chargeable
accidents or moving violations within three (3) years preceding the establishment
of the rate of insurance or classification, shall not be penalized solely by reason
of his or her age.
(b) No insurance company shall fail to renew a private passenger automobile policy because
of a loss occurrence only, unless a chargeable loss occurrence of three thousand dollars
($3,000) or more than two (2) nonchargeable loss occurrences, involving the insured,
have taken place within the annual policy year.
(c)(1) No insurance company shall fail to renew a private passenger automobile policy solely
because the insured has attained the age of sixty-five (65) years or older.
(2) Whenever the commissioner of insurance shall have reason to believe that any insurance
company has refused to renew a private passenger automobile policy solely because
the applicant has reached the age of sixty-five (65) years or older, the commissioner
shall notify the company that it may be in violation of this section and in the commissioner's
discretion the commissioner may require a hearing to determine whether or not the
company has actually been engaged in the practice stated in this subsection. Any hearing
held under this section shall in all respects comply with the hearing procedure provided
in the Administrative Procedures Act, chapter 35 of title 42.
(3) If after the hearing the commissioner shall determine that the company has engaged
in the practice of systematically failing to renew private passenger automobile policies
because of the advanced age of the insured, the commissioner shall reduce the commissioner's
findings to writing and shall issue and cause to be served upon the company an order
to cease and desist from engaging in those practices. After the issuance of the cease
and desist order, if the commissioner finds that the company has continued to engage
in those practices, the commissioner shall impose upon the company a fine not to exceed
the amount of one thousand dollars ($1,000) for each separate violation.
(4) Any company aggrieved by any order or decision of the commissioner of insurance may
appeal the order and decision to the superior court of Providence in accordance with
the Administrative Procedures Act, chapter 35 of title 42.
(d) No insurance group, carrier, or company in establishing any premium surcharge or penalty
relative to a specific motor vehicle policy, shall consider any accident or any claim
where any insured covered by that policy is fifty percent (50%) or less at fault.
(e) No insurance group, carrier, or company shall assess any premium surcharge against
any insured covered by a motor vehicle policy where a property damage claim payment
is less than three thousand dollars ($3,000).
(f) No insurance group, carrier, or company shall refuse to issue motor vehicle liability
insurance, impose a surcharge, or otherwise increase the rate for a motor vehicle
policy solely because the applicant is a volunteer driver. Volunteer driver is defined
as a person who provides services without compensation to a nonprofit agency or charitable
organization.