AN ACT RELATING TO INSURANCE -- FIRE INSURANCE POLICIES AND RESERVES (Amends Rhode Island's standard fire insurance policy by codifying uniform, transparent appraisal procedures and payment obligations that reflect contemporary claim-handling practices while preserving long-standing consumer protections.)

H7521

2026 -- H 7521
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LC003735
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STATE OF RHODE ISLAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2026
____________
A N A C T
RELATING TO INSURANCE -- FIRE INSURANCE POLICIES AND RESERVES

Introduced By:
Representative Stephen M. Casey

Date Introduced:
February 06, 2026

Referred To:
House Corporations
It is enacted by the General Assembly as follows:
1
SECTION 1. Sections 27-5-3 and 27-5-9.1 of the General Laws in Chapter 27-5 entitled
2
"Fire Insurance Policies and Reserves" are hereby amended to read as follows:
3
27-5-3. Form of standard policy.
4
The form of the standard fire insurance policy of the state of Rhode Island, with permission
5
to substitute for the word “company” or “companies” a more accurate descriptive term for the type
6
of insurer, shall be as follows:
7
No
8
Space for insertion of name of company or companies issuing the policy and other matter
9
permitted to be stated at the head of the policy.
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Space for listing amounts of insurance, rates, and premiums for the basic coverages insured
11
under the standard form of policy and for additional coverages or perils insured under endorsements
12
attached.
13
In consideration of the provisions and stipulations herein or added hereto and of ...............
14
dollars premium this company, for the term of ……………
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from the ………… day of ………………………………………………, 20 ……
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to the ………… day of ………………………………………………, 20 ………
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at 12:01 a.m. standard time at location of property involved,
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to an amount not exceeding ..................... dollars, does insure, .......................... and legal
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representatives, to the extent of the actual cash value of the property at the time of loss, but not

1
exceeding the amount which it would cost to repair or replace the property with material of like
2
kind and quality within a reasonable time after a loss, without allowance for any increased cost of
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repair or reconstruction by reason of any ordinance or law regulating construction or repair, and
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without compensation for loss resulting from interruption of business or manufacture, nor in any
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event for more than the interest of the insured, against all direct loss by fire and lightning, and by
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removal from the premises endangered by the perils insured against in this policy, except as
7
hereinafter provided, to the property described hereinafter while located or contained as described
8
in this policy, or pro rata for five (5) days at each proper place to which any of the property shall
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necessarily be removed for preservation from the perils insured against in this policy, but not
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elsewhere.
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Assignment of this policy shall not be valid except with the written consent of this
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company.
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This policy is made and accepted subject to the foregoing provisions and stipulations and
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those hereinafter stated, which are hereby made a part of this policy, together with such other
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provisions, stipulations, and agreements as may be added hereto, as provided in this policy.
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IN WITNESS WHEREOF, this company has executed and attested these presents;
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at
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…………………………………
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Secretary President
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In the event the domicile state of the company issuing the policy requires a Rhode Island company
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to have a countersignature affixed by a licensed resident agent to a policy issued in that state then
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in accordance with the provisions of § 27-2-17, the form of the standard fire insurance policy shall
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in lieu of the foregoing execution and attestation clause contain the following execution and
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attestation clause: IN WITNESS WHEREOF, this company has executed and attested these
25
presents; but this policy shall not be valid unless countersigned by the duly authorized agent of this
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company at
27

28
…………………………………
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Secretary President
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Countersigned this .…………………... day of ……………………………………20 ..………….
31

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Agent
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1
Concealment,
This entire policy shall be void if, whether
34
2
fraud.
before or after a loss, the insured will-
35
3 fully concealed or misrepresented any material
36
4 fact or circumstance concerning this insurance or the subject

LC003735 - Page 2 of 13
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5 thereof, or the interest of the insured therein, or in the case of
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6 any fraud or false swearing by the insured relating thereto.
3
7
Uninsurable
This policy shall not cover accounts, bills,
4
8
and excepted
currency, deeds, evidences of debt, money, or
5
9
property.
securities; nor, unless specifically named here-
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10 on in writing, bullion or manuscripts.
7
11
Perils not
This company shall not be liable for loss by
8
12
included.
fire or other perils insured against in this
9
13 policy caused, directly or indirectly, by: (a)
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14 enemy attack by armed forces, including action taken by mili-
11
15 tary, naval, or air forces in resisting an actual or an immediately
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16 impending enemy attack; (b) invasion; (c) insurrection; (d)
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17 rebellion; (e) revolution; (f) civil war; (g) usurped power; (h)
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18 order of any civil authority except acts of destruction at the time
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19 of and for the purpose of preventing the spread of fire, provided
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20 that this fire did not originate from any of the perils excluded
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21 by this policy; (i) neglect of the insured to use all reasonable
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22 means to save and preserve the property at and after a loss, or
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23 when the property is endangered by fire in neighboring prem-
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24 ises; (j) loss by theft.
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25
Other Insurance.
Other insurance may be prohibited or the
22
26 amount of insurance may be limited by an
23
27 endorsement attached hereto.
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28
Conditions suspending or restricting insurance.
Unless
25
29 otherwise provided in writing and added hereto this company
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or companies shall not
27
30 be liable for loss occurring:
28
31 (a) While the hazard is increased by any means within the con-
29
32 trol or knowledge of the insured; or
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33 (b) While a described building, whether intended for occupancy
31
34 by owner or tenant, is vacant or unoccupied beyond a period of
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35 sixty (60) consecutive days or
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35A thirty (30) consecutive days subsequent to the date on which an
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35B order is issued by the local building inspector pursuant to

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1
§ 23-27.3-124.2,
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35C whichever first occurs; or
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36 (c) As a result of explosion or riot, unless fire ensues, and in
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37 that event for loss by fire only.
5
38
Other perils
Any other peril to be insured against or sub-
6
39
or subjects.
ject of insurance to be covered in this policy
7
40 shall be by endorsement in writing hereon or
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41 added hereto.
9
42
Added provisions.
The extent of the application of insurance
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43 under this policy and of the contribution to
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44 be made by this company in case of loss, and any other pro-
12
45 vision or agreement not inconsistent with the provisions of this
13
46 policy, may be provided for in writing and added hereto, but no
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47 provision may be waived except such as by the terms of this
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48 policy is subject to change.
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49
Waiver
No permission affecting this insurance shall
17
50
provisions.
exist, or waiver of any provision is valid,
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51 unless granted herein or expressed in writing
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52 and added hereto. No provision, stipulation, or forfeiture shall
20
53 be held to be waived by any requirement or proceeding on the
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54 part of this company relating to appraisal or to any examina-
22
55 tion provided for herein.
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56
Cancellation
This policy shall be cancelled at any time
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57
of policy.
at the request of the insured, in which case
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58 this company shall, upon demand and sur-
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59 render of this policy, refund the excess of the paid premium
27
above
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60 the customary short rates for the expired time. This pol-
29
61 icy may be cancelled at any time by this company by giving
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62 to the insured a thirty (30) days’ written notice of cancellation except that when cancellation is
31
for nonpayment of premium, a ten (10) days’ written notice shall be required with
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63 or without tender of the excess of the paid premium above the
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pro
34
64 rata premium for the expired time.

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65 Notice of cancellation shall state that
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66 the excess premium (if not tendered) will be promptly
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67 re-funded.
4
68
Mortgagee
If loss hereunder is made payable, in whole
5
69
interests and
or in part, to a designated mortgagee not
6
70
obligations.
named herein as the insured, that interest in
7
71 this policy may be cancelled by giving to that
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72 mortgagee a ten (10) days’ written notice of
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73 cancellation.
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74 If the insured fails to render proof of loss the mortgagee, upon
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75 notice, shall render proof of loss in the form herein specified
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76 within sixty (60) days thereafter and shall be subject to the pro-
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77 visions hereof relating to appraisal and time of payment and of
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78 bringing suit. If this company shall claim that no liability ex-
15
79 isted as to the mortgagor or owner, it shall, to the extent of the pay-
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80 ment of loss to the mortgagee, be subrogated to all the mort-
17
81 gagee's rights of recovery, but without impairing the mort-
18
gagee's
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82 right to sue; or it may pay off the mortgage debt and require
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83 an assignment thereof and of the mortgage. Other provisions
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84 relating to the interests and obligations of the mortgagee may
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85 be added hereto by agreement in writing.
23
86
Pro rata liability.
This company shall not be liable for a
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87 greater proportion of any loss than the
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88 amount hereby insured shall bear to the whole insurance cover-
26
89 ing the property against the peril involved, whether collectible
27
or not.
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90
Requirements in
The insured shall
give immediate written
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91
case loss occurs.
notice to this company

notify this company as soon as practicable
of any
30
loss,
once discovered, use reasonable methods to
protect
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92 the property from further damage,
forth
32

with

use reasonable efforts to preserve and
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93 separate the damaged and undamaged personal property, put
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94 it in the best possible order, furnish a complete inventory of

LC003735 - Page 5 of 13
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95 the destroyed, damaged
, and

undamaged

personal
property, showing in
2
96 detail quantities, costs, actual cash value and amount of loss
3
97 claimed; and within sixty (60) days
after the loss

of a written request
, unless such
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98 time is extended in writing by this company, the insured shall
5
99 render to this company a proof of loss, signed
and sworn to
by
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100 the insured, stating the knowledge and belief of the insured as to
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101 the following: the time and origin of the loss, the interest of the
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102 insured and of all others in the property, the actual cash value of
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103 each item thereof and the amount of loss thereto, all encum-
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104 brances thereon, all other contracts of insurance, whether valid
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105 or not, covering any of the property, any changes in the title,
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106 use, occupation, location, possession, or exposures of the prop-
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107 erty since the issuing of this policy, and by whom and for what
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108 purpose any building herein described and the several parts
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109 thereof were occupied at the time of loss and whether or not it
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110 then stood on leased ground, and shall furnish a copy of all the
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111 descriptions and schedules in all policies and, if required, veri-
18
112 fied plans and specifications of any building, fixtures, or machin-
19
113 ery destroyed or damaged. The insured,
as often as may be
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114 reasonably required, shall exhibit to any person designated by
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115 this company all that remains of any property herein described,
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116 and submit to examinations under oath by any person named by
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117 this company, and subscribe the same; and, as often as may be
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118 reasonably required, shall produce for examination all books of
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119 account, bills, invoices, and other vouchers, or certified copies
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120 thereof if the originals are lost, at such reasonable time and
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place as
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121 may be designated by this company or its representative, and
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114 prior to invoking a demand for appraisal as provided for
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115 herein, shall allow reasonable inspection of the damaged
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116 property by this company, all that remains of any property
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117 herein described, and submit to one examination under
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118 oath by this company, and
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122

119
shall permit extracts and copies thereof to be made
, and as may be

LC003735 - Page 6 of 13
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120 reasonably required, produce documentation to support any claim made,
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121 which may be reasonably obtainable and not financially burdensome,
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122 which shall occur at a mutually agreed upon time and place.
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123 Any examination under oath reasonably required pursuant to this section
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124 shall be conducted by telephone, through written questions propounded by
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125 this company, or by another method mutually agreed upon by the insured
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126 and this company. Any such written questions shall be answered in writing
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127 by the insured, subscribed by the insured, and sworn to before a notary public
9
128 or other officer authorized to administer oaths
.
10
123
Appraisal.
In case the insured and this company shall
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124 fail to agree as to the actual cash value or
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125 the amount of loss, then, on the written demand of either, each
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126 shall select a competent and disinterested appraiser and notify
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127 the other of the appraiser selected within twenty (20) days of
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128 that demand. The appraisers shall first select a competent and
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129 disinterested umpire; and failing for fifteen (15) days to agree
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130 upon the umpire, then, on request of the insured or this com-
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131 pany, the umpire shall be selected by a judge of a court of
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132 record in the state in which the property covered is located. The
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133 appraisers shall then appraise the loss, stating separately actual
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134 cash value and loss to each item; and, failing to agree, shall
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135 submit their differences, only, to the umpire. An award in writ-
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136 ing, so itemized, of any two (2) when filed with this company
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shall
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137 determine the amount of actual cash value and loss. Each
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138 appraiser shall be paid by the party selecting him or her and
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139 the expenses of appraisal and the umpire shall be paid by
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140 the parties equally.
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129
Appraisal
. If the insured and this company fail to agree on the amount
30
130 of loss, regardless of coverage acceptance, either party may demand
31
131 appraisal in writing. A full or partial denial of coverage shall not relieve
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132 this company of its obligation to resolve scope of work disputes involving
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133 the extent and amount of loss through appraisal, if the insured demands appraisal.
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134 Within twenty (20) days of a demand for appraisal, each party shall select a competent

LC003735 - Page 7 of 13
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135 and disinterested appraiser who, at the time of appointment, is at least eighteen
2
136 (18) years of age, and has been a resident of Rhode Island for at least one year,
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137 and further, is knowledgeable in the calculation of replacement cost value and actual
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138 cash value under the regulations promulgated pursuant to § 27-9.1-8, or its successors.
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139 Additionally, the appraiser selected by this company shall be either an independent
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140 insurance adjuster or an attorney, both of whom require active licensure in the State of
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141 Rhode Island. The appraisers shall have fifteen (15) days from the date both appraisers
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142 are appointed to agree upon a competent and disinterested umpire.
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143 The umpire, at the time of appointment, shall be at least eighteen (18) years of age,
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144 and have been a resident of Rhode Island for at least one year, and shall either:
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145

(i) Be a disinterested person selected from the list of arbitrators
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146

maintained by the Superior Court for the Court Annexed Arbitration Program; or
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147

(ii) Be a disinterested person who does not hold an active company adjuster,
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148 independent adjuster, or public adjuster license and has not held such a license
15
149 within the twelve (12) months preceding the date of appointment as umpire.
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150 If, for any reason, the appraisers fail to agree upon an umpire within the fifteen (15) days
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151 provided to them to do so, or if either party fails to appoint an appraiser within the required
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152 time, after the fifteenth day, either party may petition a court of record in this state
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153 pursuant to §§ 10-3-4 and 10-3-6, or its successors, for the appointment of an
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154 appraiser, an umpire, or both. If, at the time such petition is heard, either party has not appointed
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155 an appraiser, the court shall, upon the request of the aggrieved party, appoint the appraiser for
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156 the party that failed to timely name their appraiser, and the court shall concurrently appoint the
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157 umpire, to provide for a speedy and efficient resolution of the amount of loss in dispute. Once
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158 appointed, the appraisers shall appraise the loss by separately determining the replacement cost
25
159 value, and if necessary, the actual cash value associated with the restoration of the property.
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160 The appraisers and umpire shall be promptly informed by the parties if the policy to which
27
161 the appraisal has been invoked under is a replacement cost value or actual cash value policy.
28
If the
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162 policy has replacement cost value coverage, then only the replacement cost value shall be
30
163 calculated. If the policy has actual cash value coverage, then both the replacement cost value
31
164 and actual cash values shall be calculated.
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165 Replacement cost value shall include all legitimate and necessary materials, labor, and
33
166 specialized labor, and shall be inclusive of all consequential damage costs,
34
167 necessary to restore the property to a reasonably uniform appearance.

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168 Restoration shall use new materials of like kind, quality, color, and appearance to the
2
169 existing undamaged materials when the property is not being wholly replaced.
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170 Replacement cost value shall further factor in all applicable building requirements
4
171 and manufacturer installation instructions, whichever is more stringent; and
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172 shall include compliance with all applicable health and safety requirements based on
6
173 the age, design, and general nature of the scope of work for the property, without
7
174 consideration of any depreciation.
8
175 Actual cash value calculation shall include reasonable depreciation, which shall apply only to
9
176 materials that are removed and replaced with new materials. Depreciation shall not be
10
177 applied to labor, taxes, permits, fees, interest, or any non-material cost. Materials added
11
178 solely due to building requirements or manufacturer installation standards shall not be
12
179 depreciated. A depreciation schedule shall be prepared by each appraiser and provided to
13
180 the appraisal panel.
14
181 If the appraisers do not agree on any portion of the replacement cost value, actual
15
182 cash value, or the cause of the damage evaluated, they shall submit only
16
183 their differences and disagreements to the umpire for resolution.
17
184 The appraisal award shall separately indicate the replacement cost value and
18
185 accrued interest, calculated back to the date of loss, using a minimum interest rate of
19
186 twelve percent (12%) per annum as established under § 9-21-10.
20
187 If the policy provides actual cash value coverage, then the appraisal award shall
21
188 separately indicate the replacement cost value, depreciation amount(s), the actual cash
22
189 value, and accrued interest, calculated on the actual cash value back to the date of loss,
23
190 using a minimum interest rate of twelve percent (12%) per annum as established
24
191 under § 9-21-10.
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192 A written award signed by any two (2) members of the appraisal panel and filed with this
26
193 company shall determine the amount of loss. Each appraiser shall immediately provide the
27
194 executed award to the party who appointed that appraiser.
28
195 If the insured purchased replacement cost coverage, the replacement cost value stated in the
29
196 award, plus applicable interest accruing up to the date the payment is received, shall be the
30
197 amount due.
31
198 If the insured purchased only actual cash value coverage, the actual cash value stated
32
199 in the award, plus applicable interest accruing up to the date the payment is received,
33
200 shall be the amount due.
34
201 If this company seeks to vacate or modify the appraisal award, it shall, contemporaneously

LC003735 - Page 9 of 13
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202 with its initial filing in court, deposit into the registry of the court the full amount due for the
2
203 appraisal award, including interest accrued to the date of filing, which shall remain on deposit
3
204 pending final adjudication.
4
205 If the cause of loss determined by the appraisal is covered under the policy and the company
5
206 fails to pay the appraisal award within thirty (30) days of receipt of the award, and the
6
207 insured thereafter files an action to confirm or enforce the award, this company shall,
7
208 contemporaneously with its initial filing in that action, deposit into the registry of the court
8
209 the full amount due for the appraisal award, including interest accrued to the date of filing,
9
210 pending final adjudication.
10
211 If the appraisal is invoked by the insured, each appraiser shall be compensated by the
11
212 party selecting that appraiser. If the appraisal is invoked by the company, the expenses
12
213 of both appraisers shall be paid by the company. The fees of the umpire shall be paid
13
214 by the parties equally. No party shall pay more than fifty percent (50%) of the umpire’s
14
215 total fees.
15
141
216

Company's
It shall be optional with this company to
16
142
217

options.
take all, or any part, of the property at the
17
143
218
agreed or appraised value, and also to re-
18
144
219
pair, rebuild, or replace the property destroyed or damaged with
19
145
220
another of like kind and quality within a reasonable time, on
20
146
221
giving notice of its intention so to do within thirty (30) days
21
147
222
after the receipt of the proof of the loss herein required.
22
148
223

Abandonment.
There can be no abandonment to this com-
23
149
224
pany of any property.
24
150
225

When loss
The amount of loss for which this company
25
151
226

payable
may be

becomes
liable
for
shall be payable
sixty (60)

thirty (30)
26
152
227
days after
proof of loss, as herein provided,
27
153

228

is received by this company and
ascertainment of the loss is
28
154

229
made
either by agreement between the insured and this com-
29
155

230

pany expressed in writing or by the filing with this company
30
156

231

of an award as herein provided.

by this company, to which payment may be issued without
31
232 agreement of the insured, or where there is an agreement between the parties expressed in
32
233 writing or by the filing with this company of an appraisal award as herein provided.
33
234 Any payment made by this company to the insured that is not the payment of an appraisal
34
235 award or judgment, shall be accompanied by written notice advising the insured that any

LC003735 - Page 10 of 13
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236 disagreement regarding the amount of loss may be resolved through appraisal as herein
2
237 provided.
3
157
238

Suit.
No

A
suit or action on this policy for the recov-
4
158
239
ery of any claim
caused solely by fire or lightning
shall be sustainable in any
5
159
240
court of law or equity
unless all the requirements of this policy
6
160
241

shall have been complied with, and unless

if it is
commenced within
7
161
242
twenty-four (24) months next after inception of the loss.
8
162
243

Subrogation.
This company may require from the insured
9
163
244
an assignment of all rights of recovery.
10
164
245
against any party for loss to the extent that payment therefor
11
165
246
is made by this company.
12
Standard Fire Insurance Policy of the State of
13
Expires
14
Property
15
Assured
16
No. ……………………………
17

(COMPANY)
18
19
the same property read exactly alike. If they do not, they should
20
be made uniform at once.
21
SECTION 2. Section 27-5-9.1 of the General Laws in Chapter 27-5 entitled "Fire Insurance
22
Policies and Reserves" is hereby amended to read as follows:
23

27-5-9.1. Simplified comprehensive policies of insurance.
24

(a)
Simplified
comprehensive
policies of insurance providing broad coverage of all or
25
various combinations of risks may be approved by the director of business regulation and issued
26
by insurers notwithstanding those provisions of any other law that specify the contents of insurance
27
policies; provided, that those policies contain provisions assuring to policyholders and claimants
28
protection not less favorable than they would be entitled to under § 27-5-3 or a substantially similar
29
policy that is not subject to this section.
30

(b) Limitations period for non-fire and non-lightning homeowners claims. Any legal action
31
for a claim under a homeowners policy issued pursuant to this section, where the cause of loss is
32
neither fire nor lightning, shall be commenced within ten (10) years after inception of the loss. Any

LC003735 - Page 11 of 13
1
contractual provision establishing a shorter limitations period is void and unenforceable.
2

(c) For purposes of this section, “inception of the loss” means, in the case of a continuous,
3
repeated, or progressive loss, the first day on which the loss or damage was discovered.
4

(d) Fire and lighting claims unaffected. Claims arising from fire or lightning shall remain
5
governed by § 27-5-3.
6
SECTION 3. This act shall take effect upon passage.
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LC003735
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LC003735 - Page 12 of 13
EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO INSURANCE -- FIRE INSURANCE POLICIES AND RESERVES
***
1
This act would amend Rhode Island's standard fire insurance policy by codifying uniform,
2
transparent appraisal procedures and payment obligations that reflect contemporary claim-handling
3
practices while preserving long-standing consumer protections.
4
This act would take effect upon passage.
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LC003735
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LC003735 - Page 13 of 13