AN ACT RELATING TO INSURANCE -- CHILD-SERVING PROVIDER LIABILITY JOINT UNDERWRITING ASSOCIATION (Creates the child-serving provider liability joint underwriting association to provide a joint underwriting association to provide liability insurance coverage for eligible child serving providers.)

S2721

2026 -- S 2721
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LC005849
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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 -- CHILD-SERVING PROVIDER LIABILITY JOINT
UNDERWRITING ASSOCIATION

Introduced By:
Senators DiMario, Lauria, Gallo, Vargas, Valverde, Britto, Acosta,
Murray, and Kallman

Date Introduced:
February 27, 2026

Referred To:
Senate Judiciary
It is enacted by the General Assembly as follows:
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SECTION 1. Title 27 of the General Laws entitled "INSURANCE" is hereby amended by
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adding thereto the following chapter:
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CHAPTER 84
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CHILD-SERVING PROVIDER LIABILITY JOINT UNDERWRITING ASSOCIATION
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27-84-1. Declaration of purpose.

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(a) The general assembly finds that:
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(1) Child-serving providers throughout the state are experiencing significant difficulty in
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obtaining affordable and adequate liability insurance coverage;
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(2) These organizations provide essential services to children and families, including
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childcare, education, behavioral health services, youth development, mentoring, foster care, and
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recreational programming;
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(3) The lack of available or affordable liability insurance threatens the continued operation
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of these providers and the health, safety, and welfare of Rhode Island children;
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(4) It is in the public interest to ensure the availability of liability insurance coverage for
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child-serving providers unable to procure such coverage in the voluntary insurance market.
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(b) The purpose of this chapter is to establish a joint underwriting association to provide
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liability insurance coverage to eligible child-serving providers as a market of last resort. This
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chapter is enacted to provide a mechanism for the equitable apportionment among insurers of the

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responsibility for insuring eligible child-serving providers who are in good faith entitled to, but are
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unable to procure, liability insurance coverage through ordinary methods.
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27-84-2. Definitions.

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As used in this chapter:
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(1) “Association” means the child-serving organization liability joint underwriting
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association established pursuant to this chapter.
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(2) “Child care provider” or “child-serving provider” means any person, corporation,
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partnership, nonprofit organization, governmental entity, or other legal entity that is licensed,
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certified, registered, or otherwise authorized under the laws of the State of Rhode Island to provide
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care, supervision, treatment, education, behavioral health services, residential services, or other
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essential services to children under eighteen (18) years of age. Such term shall include, but not be
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limited to:
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(i) Licensed child care centers and family child care homes;
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(ii) Group family child care homes and school-age child care programs;
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(iii) Early learning, preschool, and pre-kindergarten programs not otherwise operated by a
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public school district;
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(iv) Community-based children’s behavioral health providers including, but not limited to,
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entities providing outpatient counseling, home-based services, mobile response and stabilization
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services, intensive in-home treatment, therapeutic mentoring, case management, or similar
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services;
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(v) Residential treatment facilities, group homes, therapeutic foster care agencies, shelter
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care programs, and other congregate care programs serving minors;
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(vi) Providers of early intervention services, developmental disability services, and child
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welfare services;
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(vii) Nonprofit or for-profit organizations that provide after-school programs, enrichment
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programs, mentoring services, recreational supervision, or structured youth programming; and
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(viii) Any other licensed or state-contracted provider whose primary purpose includes the
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supervision, care, custody, treatment, or support of minors.
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For purposes of clarity, this definition shall apply regardless of whether services are
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delivered in a center-based setting, in a residential facility, in a private home, in a community
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setting, or through mobile or in-home service delivery.
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(3) “Department” means the Rhode Island department of business regulation.
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(4) “Director” means the director of the department of business regulation, or designee.
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(5) “Member insurer” means every insurer authorized to write commercial general liability

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insurance in this state.
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(6) “Net direct premiums” means gross direct premiums written on commercial general
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liability insurance in this state, less return premiums thereon and dividends paid or credited to
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policyholders.
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27-84-3. Establishment of association -- Mandatory membership.

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(a) There is created a nonprofit, unincorporated legal entity to be known as the child-
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serving provider liability joint underwriting association.
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(b) Every insurer authorized to write commercial general liability insurance in this state
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shall be and remain a member of the association as a condition of its authority to transact such
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insurance within this state.
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(c) The association shall operate pursuant to a plan of operation approved by the director
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and shall exercise its powers through a board of directors established under the plan.
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(d) The association shall operate under the supervision of the department and shall be
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subject to the applicable provisions of this title.
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27-84-4. Governance.

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(a) The association shall be governed by a board of directors consisting of:
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(1) Four (4) representatives of member insurers, appointed by the director;
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(2) Three (3) representatives of child-serving organizations, appointed by the governor;
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(3) One public member with experience in child advocacy or risk management, appointed
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by the governor; and
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(4) The director, or designee, who shall serve as an ex officio, nonvoting member.
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(b) Board members shall serve terms of three (3) years and may be reappointed.
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(c) The board shall adopt bylaws and administer the association in accordance with the
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approved plan of operation.
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27-84-5. Plan of operation.

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(a) Within one hundred twenty (120) days after the effective date of this chapter, the
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association shall submit to the director a proposed plan of operation for approval.
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(b) The plan of operation shall provide for:
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(1) The establishment of necessary facilities for underwriting, policy issuance, claims
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handling, and other functions of the association;
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(2) Reasonable underwriting standards for determining eligibility;
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(3) Procedures for applicants to demonstrate inability to obtain coverage in the voluntary
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market;
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(4) The establishment of rates, rating plans, and policy forms;

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(5) The assessment of member insurers to defray losses and expenses;
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(6) The investment and management of funds;
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(7) The appointment of servicing carriers or third-party administrators; and
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(8) Such other provisions as are necessary or proper for the efficient operation of the
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association.
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(c) If the association fails to submit a suitable plan of operation, the director shall
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promulgate and adopt a plan.
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(d) The plan of operation and any amendments thereto shall be subject to approval by the
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director.
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27-84-6. Coverage.

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(a) The association shall make available commercial general liability insurance coverage,
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including coverage for bodily injury, property damage, personal injury, and sexual abuse and
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molestation liability, to any eligible child-serving provider that:
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(1) Is in compliance with applicable state licensing and regulatory requirements; and
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(2) Has been unable, after diligent effort, to obtain substantially equivalent coverage in the
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voluntary market.
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(b) The association may establish reasonable limits of liability, deductibles, exclusions,
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and underwriting requirements, subject to approval by the director.
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(c) Coverage shall be provided only so long as the insured remains unable to obtain
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coverage in the voluntary market.
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27-84-7. Rates.

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(a) Rates shall not be excessive, inadequate, or unfairly discriminatory and shall be
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actuarially sound.
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(b) All rates, rating plans, and policy forms shall be filed with and approved by the director
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prior to use.
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(c) The director may disapprove any rate or form inconsistent with this title.
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27-84-8. Assessments.

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(a) If the association’s premiums, investment income, and other revenues are insufficient
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to pay its losses and expenses, the association shall assess member insurers in proportion to each
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member’s share of net direct premiums written in this state for commercial general liability
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insurance during the preceding calendar year.
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(b) Assessments shall be subject to approval by the director.
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(c) A member insurer may offset any assessment paid against its premium tax liability in
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this state in a manner and over a period determined by the general assembly.

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27-84-9. Powers of the association.

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The association shall have the power to:
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(1) Sue and be sued;
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(2) Enter into contracts;
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(3) Borrow funds and issue evidence of indebtedness;
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(4) Purchase reinsurance;
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(5) Invest funds in accordance with § 27-4-27;
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(6) Appoint servicing carriers or administrators; and
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(7) Perform all acts necessary or proper to effectuate the purposes of this chapter.
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27-84-10. Board of directors -- Immunity.

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(a) The association shall be governed by a board of directors established pursuant to the
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plan of operation and approved by the director.
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(b) No member of the board of directors, officer of the association, or employee or agent
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of the association shall be liable in a civil action for any act or omission arising out of the
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performance of duties pursuant to this chapter; provided that, such person acted in good faith and
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without willful misconduct or gross negligence.
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(c) The association shall indemnify and hold harmless each board member, officer,
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employee, and agent of the association against all costs, expenses, judgments, and liabilities
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incurred in connection with any action, suit, or proceeding arising out of the performance of duties
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under this chapter; provided that, the person acted in good faith and without willful misconduct or
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gross negligence.
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(d) For purposes of chapter 31 of title 9, the association shall be deemed a public
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instrumentality of the state solely for purposes of the immunity protections set forth in this section.
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27-84-11. Examination and oversight.

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The association shall be subject to examination by the department in the same manner as
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insurers authorized to transact business in this state. The reasonable costs of examination shall be
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borne by the association.
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27-84-12. Tax status.

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The association shall be exempt from all state and local taxes except taxes on real and
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personal property.
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27-84-13. Annual report.

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The association shall submit annually to the director and to the speaker of the house of
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representatives and the president of the senate a report on its financial condition, underwriting
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experience, claims activity, and market conditions.

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SECTION 2. This act shall take effect upon passage.
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LC005849
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO INSURANCE -- CHILD-SERVING PROVIDER LIABILITY JOINT
UNDERWRITING ASSOCIATION
***
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This act would create the child-serving provider liability joint underwriting association to
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provide a joint underwriting association to provide liability insurance coverage for eligible child
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serving providers.
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This act would take effect upon passage.
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LC005849
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