On Jun. 21, RI LEG passed bill on insurance unfair claims practices.
RI LEG passed Bill SB 2681, HB 7507, on the Unfair claims settlement practices act.
Provided that any insurer refusing to honor a direction to pay executed by an insured for payment on a property damage benefit would constitute an unfair claims practice.
Bill Provisions
Amends RI LEG 27-9.1-4 to require an insurer to honor a direction to pay, for payment on a property damage benefit, violation would constitute an unfair claims practice.
Also an unfair claims practice when a claim is settled, or partially settled, where the named insured is represented by a public adjuster failing to obey a direction to pay.
Legislative History
On Mar. 1, 2024, bill introduced in Senate; on Jun. 13, 2024, bill passed in Senate.
On Jun. 13, 2024, bill delivered to House; on Jun. 13, 2024, bill was passed in House.
On Jun. 21, 2024, bill delivered to governor, pending governor's signature or veto.
Effectiveness
If approved, act takes effect on Jan. 1, 2025.
Jun. 29, 2024 RI LEG Bill Enacted
On Jun. 29, 2024, RI LEG SB 2681/HB 750 enact without governor sign, Ch. 435, 436.
Regulators
RI LEG
Entity Types
Corp; Ins
Reference
Ch. 435, 436, 6/29/2024; Bill SB2681, H7507, 6/21/2024; Citation: RI LEG 27-9.1-4;
