AN ACT RELATING TO INSURANCE -- CASUALTY INSURANCE RATING (Permits on and after July 1, 2027, for an insurer to consider the zip code in which the vehicle is garaged provided that the calculation of the zip code is segmented by the municipality where the vehicle is garaged.)

S2431

2026 -- S 2431
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LC004703
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STATE OF RHODE ISLAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2026
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A N A C T
RELATING TO INSURANCE -- CASUALTY INSURANCE RATING

Introduced By:
Senators Famiglietti, Thompson, Appollonio, Burke, Dimitri, Patalano,
Murray, Bissaillon, LaMountain, and Tikoian

Date Introduced:
February 06, 2026

Referred To:
Senate Commerce
It is enacted by the General Assembly as follows:
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SECTION 1. Section 27-9-4 of the General Laws in Chapter 27-9 entitled "Casualty
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Insurance Rating" is hereby amended to read as follows:
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27-9-4. Considerations in making of rates -- Cancellation of policy. [Effective January
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1, 2026.]
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(a) All rates shall be made in accordance with the following provisions:
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(1)(i) Due consideration shall be given to past and prospective loss experience within and
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outside this state, to catastrophe hazards, if any, to a reasonable margin for underwriting profit and
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contingencies, to dividends, savings, or unabsorbed premium deposits allowed or returned by
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insurers to their policyholders, members, or subscribers, to past and prospective expenses both
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countrywide and those specially applicable to this state, and to all other relevant factors within and
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outside this state; provided, that no consideration shall be given to:
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(A) Any loss or incident involving a bus driver, while in the course of the bus driver’s
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employment for the Rhode Island public transit authority or private or municipal school bus
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companies, in establishing or maintaining that driver’s rate respecting the operation of a personal
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motor vehicle or vehicles;
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(B) Any loss or incident involving a law enforcement officer, while in the course of the
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law enforcement officer’s employment for the state, city, town police departments, or federal law
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enforcement agency, in establishing or maintaining that driver’s rate respecting the operation of a
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personal motor vehicle or vehicles; and

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(C) Any loss or incident involving a commercial vehicle driver, while in the course of the
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commercial vehicle driver’s employment, in establishing or maintaining that driver’s rate
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respecting the operation of a personal motor vehicle(s);
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(ii) It shall be the responsibility of a commercial vehicle driver to provide the commercial
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vehicle driver’s insurance company with proof that the loss or incident took place in the course of
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employment while operating a commercial vehicle. For the purposes of this section, a “commercial
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vehicle” shall be a motor vehicle with a gross weight in excess of ten thousand pounds (10,000 lbs.)
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or a motor vehicle used for public livery;
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(2) The systems of expense provisions included in the rates for use by any insurer or group
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of insurers may differ from those of other insurers or groups of insurers to reflect the requirements
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of the operating methods of any insurer or group with respect to any kind of insurance, or with
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respect to any subdivision or combination of insurance for which subdivision or combination
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separate expense provisions are applicable;
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(3) Risks may be grouped by classifications for the establishment of rates and minimum
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premiums;
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(4) Rates shall not be excessive, inadequate, or unfairly discriminatory;
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(5) For any policy written, delivered, or renewed on or after January 1, 2025, in establishing
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or maintaining an insured’s rate or classification respecting the operation of a personal motor
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vehicle, widowed persons shall not be treated differently than persons in a marriage; and
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(6) In establishing or maintaining an insured’s rate or classification respecting the operation
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of a personal motor vehicle, any insured sixty-five (65) years of age or older, who meets the criteria
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set forth in this section and has not had any chargeable accidents or moving violations within three
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(3) years preceding the establishment of the rate of insurance or classification, shall not be penalized
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solely by reason of his or her age.
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(b) No insurance company shall fail to renew a private passenger automobile policy
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because of a loss occurrence only, unless a chargeable loss occurrence of three thousand dollars
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($3,000) or more than two (2) nonchargeable loss occurrences, involving the insured, have taken
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place within the annual policy year.
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(c)(1) No insurance company shall fail to renew a private passenger automobile policy
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solely because the insured has attained the age of sixty-five (65) years or older.
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(2) Whenever the commissioner of insurance shall have reason to believe that any
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insurance company has refused to renew a private passenger automobile policy solely because the
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applicant has reached the age of sixty-five (65) years or older, the commissioner shall notify the
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company that it may be in violation of this section and in the commissioner’s discretion the

LC004703 - Page 2 of 5
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commissioner may require a hearing to determine whether or not the company has actually been
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engaged in the practice stated in this subsection. Any hearing held under this section shall in all
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respects comply with the hearing procedure provided in the Administrative Procedures Act, chapter
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35 of title 42.
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(3) If after the hearing the commissioner shall determine that the company has engaged in
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the practice of systematically failing to renew private passenger automobile policies because of the
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advanced age of the insured, the commissioner shall reduce the commissioner’s findings to writing
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and shall issue and cause to be served upon the company an order to cease and desist from engaging
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in those practices. After the issuance of the cease and desist order, if the commissioner finds that
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the company has continued to engage in those practices, the commissioner shall impose upon the
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company a fine not to exceed the amount of one thousand dollars ($1,000) for each separate
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violation.
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(4) Any company aggrieved by any order or decision of the commissioner of insurance
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may appeal the order and decision to the superior court of Providence in accordance with the
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Administrative Procedures Act, chapter 35 of title 42.
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(d) No insurance group, carrier, or company in establishing any premium surcharge or
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penalty relative to a specific motor vehicle policy, shall consider any accident or any claim where
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any insured covered by that policy is fifty percent (50%) or less at fault.
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(e) No insurance group, carrier, or company shall assess any premium surcharge against
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any insured covered by a motor vehicle policy where a property damage claim payment is less than
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three thousand dollars ($3,000).
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(f) No insurance group, carrier, or company shall refuse to issue motor vehicle liability
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insurance, impose a surcharge, or otherwise increase the rate for a motor vehicle policy solely
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because the applicant is a volunteer driver. Volunteer driver is defined as a person who provides
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services without compensation to a nonprofit agency or charitable organization.
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(g) No group, carrier, or company providing personal lines insurance as defined in § 27-
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14.5-1 shall assess any premium surcharge or penalty against an insured inquiring about the specific
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terms of their policy. Nothing in this subsection shall be construed to prevent an insurance group,
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carrier, or company from assessing a premium surcharge, change in rating, or penalty as a result of
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a policy change or loss.
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(h) An insurer issuing motor vehicle liability insurance which utilizes the zip code of where
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a vehicle is garaged when calculating their policy premium may do so provided the calculation of
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the zip code is segmented by the municipality where the vehicle is garaged. The provisions of this
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subsection shall be effective for policies issued or renewed on or after July 1, 2027.

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SECTION 2. This act shall take effect upon passage.
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO INSURANCE -- CASUALTY INSURANCE RATING
***
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This act would permit, on and after July 1, 2027, for an insurer to consider the zip code in
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which the vehicle is garaged provided that the calculation of the zip code is segmented by the
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municipality where the vehicle is garaged.
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This act would take effect upon passage.
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