2021 Legislative Changes

1 josh Department of Business Regulation Insurance Division 1511 Pontiac Avenue, Bldg. 69-2 Cranston, Rhode Island 02920 Insurance Bulletin Number 2022-1 2021 Legislative Changes The following legislative amendments were enacted to date during the 2021 session of the Rhode Island General Assembly. This information is being provided in accordance with R.I. Gen. Laws § 27-71-14(a). This bulletin is being provided for informational purposes only and may not be an all-inclusive list of enactments that impact the insurance industry. Licensees should refer to the statute itself to determine the impact. Any person wishing to be included in these annual notifications pursuant to R.I. Gen. Laws § 27-71-14(b) who is not currently on the interested parties list may sign up for email updates by clicking here. Financial Bill 5780aaa 2021 P.L. ch. 231 Effective July 8, 2021 980aa 2021 P.L. ch. 230 Effective July 8, 2021 This legislation brings the provisions of the Credit for Reinsurance, Insurance Holding Company Act and Risk Based Capital Life Trend Test into conformance with the most recent versions of the National Association of Insurance Commissioners Model (NAIC) Acts. Risk Based Capital 6122aa, Article 3 2021 P.L. ch 162, Article 3 Effective January 1. 2022 This legislation brings the Risk Based Capital Life Trend Test into conformance with the most recent version of the NAIC Model Act. Joint Tortfeasors 5560 2021 P.L. ch. 411 Effective July 14, 2021 733 2021 P.L. ch. 410 Effective July 14, 2021 This legislation changes the law on joint tortfeasors and provides that a release by the injured person of one joint tortfeasor relieves that tortfeasor from liability to make contribution to another joint tortfeasor. 2 Residential Rental Insurance 5573A 2021 P.L. ch. 323 Effective January 1. 2022 718A 2021 P.L. ch. 210 Effective January 1, 2022 This legislation requires residential landlords to maintain a general liabilty policy with minimum limits of $100,000 for persons injured on the premises due to the negligence of the landlord. Wrongful Death Damages 5581A 2021 P.L. ch. 341 Effective July 12, 2021 513A 2021 P.L. ch. 342 Effective July 12, 2021 This legislation adds damages for emotional distress, grief and loss of enjoyment of life to loss of consortium as a result of a wrongful death. Life Settlement Providers 5599 2021 P.L. ch. 401 Effective July 13, 2021 1001 2021 P.L. ch. 400 Effective July 13, 2021 This legislation removes “moral turpitude” as a basis for denial of a life settlement provider license. Products Liability 5867A 2021 P.L. ch. 388 Effective July 13, 2021 736A 2021 P.L. ch. 387 Effective July 13, 2021 This legislation makes a subsequent alteration defense in a products liabilty case subject to comparative negligence. Compulsory Automobile Insurance 5979 2021 P.L. ch. 106 Effective July 1, 2021 675 2021 P.L. ch. 105 Effective July 1, 2021 This legislation extends compulsory automobile insurance to those vehicles required to be registered in addition to those vehicles that are registered. Unfair Claims Settlement Practices Act 6324 2021 P.L. ch. 427 Effective January 4, 2022 870 2021 P.L. ch. 426 Effective January 4, 2022 This legislation adds to language to subsections (21) and (25)(v) and adds new section (27) regarding payment for “sublet services” and “industry standard markup.” Rental Car Loss of Use 6052A 2021 P.L. ch. 265 Effective July 14, 2021 884A 2021 P.L. ch. 260 Effective July 14, 2021 This legislation clarified that the existing statute applies to collision and comprehensive losses in addition to liability. 3 DMV Insurance and Security Statutes 6054 2021 P.L. ch. 399 Effective July 14, 2021 401 2021 P.L. ch. 398 Effective July 14, 2021 This legislation amends DMV statutes related to the filing of security or bond with the DMV and makes technical changes to the laws related to uninsured motorist coverage. Deceptive Trade Practices 6142A 2021 P.L. ch. 329 Effective July 9, 2021 684A 2021 P.L. ch 206 Effective July 7, 2021 This legislation clarifies the Attorney Generals authority to enforce the general Deceptive Trade Practices Act. Auto Salvage Title 6188A 2021 P.L. ch. 423 Effective July 20, 2021 774A 2021 P.L. ch. 424 Effective July 20, 2021 This legislation amends an existing DMV statute and sets forth how an insurer may apply for a salvage title and amends other provisions related to salvage vehicle titles. Statutory Cleanup 6428 2021 P.L. ch. 395 Effective July 14, 2021 This legislation makes technical non substantive corrections to § 27-2.4-16 and Chapter 27-74 Workers Compensation Updates 6376A 2021 P.L. ch. 403 Effective January 1, 2022 937A 2021 P.L. ch. 402 Effective January 1, 2022 This legislation updates the burden of proof for recurrences of injuries, adds a time limit and penalty for payments due per a court order, and adjusts payments for post-January 1, 2022 partial and total injuries. Colorectal Cancer Screening 5432A 2021 P.L. ch. 008 Effective January 1, 2022 383aa 2021 P.L. ch. 007 Effective January 1, 2022 This legislation ensures insurance coverage for certain prostate and colorectal preventive screening examinations and prohibits cost sharing for certain services related to colorectal screening examinations. 4 Gender Based Rates for Health Insurance 5763 2021 P.L. ch. 88 Effective January 1, 2023 3A 2021 P.L. ch. 89 Effective January 1, 2023 This legislation prohibits insurance companies from varying the premium rates charged for a health coverage plan based on the gender of the individual policy holder, enrollee, subscriber, or member. Telemedicine Coverage 6032A 2021 P.L. ch. 199 Effective July 6, 2021 4B 2021 P.L. ch. 184 Effective July 6, 2021 This legislation amends provisions of The Telemedicine Coverage Act and provides coverage for telemedicine for medically necessary and clinically appropriate telemedicine services. This legislation further provides that dentists practicing telemedicine are subject to the same standard of care as would apply to dental services provided in person. Confidentiality of Health Care Communications 5370A 2021 P.L. ch. 212 Effective January 1, 2022 62A 2021 P.L. ch. 213 Effective January 1, 2022 This legislation requires a health insurer to accommodate a request for communication in the form and format requested by the insured individual, if it is readily producible in the requested form and format, including to provide such medical information to a specific mail or email address or specific telephone number, as designated by the insured individual. Out-of-Pocket Costs Related to COVID-19 6208A 2021 P.L. ch. 145 Effective July 3, 2021 877A 2021 P.L. ch. 161 Effective July 3, 2021 This legislation prohibits insurance carriers from imposing any out-of-pocket expenses to the insured for COVID-19 related services while the COVID-19 state of emergency order is in effect. This legislation further prohibits insurance carriers from imposing any out-ofpocket expenses to the insured for COVID-19 testing and COVID-19 vaccination during and after the expiration of the state of emergency order. Limit Insulin Copayments 5196A 2021 P.L. ch. 110 Effective January 1, 2022 170B 2021 P.L. ch. 163 Effective January 1, 2022 This legislation provides that health plans that provide coverage for prescription insulin drugs used to treat diabetes shall only be allowed to impose up to a forty dollars ($40.00) copayment for a thirty (30) day supply of a covered prescription insulin drug. This legislation further provides that coverage for prescription insulin drugs shall not be subject to any deductible. 5 Health Care Coverage for Perinatal Doula Services 484A 2021 P.L. ch. 209 Effective July 1, 2022 5929A 2021 P.L. ch. 321 Effective July 1, 2022 This legislation provides for health care coverage by health insurance companies for perinatal doula services. Health Insurance Plans Barred from Prohibiting Pharmacists Disclosing Reimbursement Criteria 6477A 2021 P.L. ch. 164 Effective July 6, 2021 497A 2021 P.L. ch. 165 Effective July 6, 2021 This legislation bars health insurance plans from prohibiting pharmacists from discussing information with an insured regarding the amount of the insured’s cost share for a prescription drug and also provides that pharmacy benefits managers may not penalize a pharmacy or pharmacist for disclosing such pricing information or for selling a lowerpriced drug to an insured. Copies of Rhode Island Insurance Regulations, Insurance Bulletins and applicable Rhode Island General Laws are accessible through these links or by visiting the Department’s website at www.dbr.ri.gov. Copies of the Senate and House bills are accessible through these links or by visiting the Rhode Island General Assembly website at www.rilin.state.ri.us. In light of the above amendments, insurers are required to review current policy forms, rules and rates to determine if new and/or revised filings are required and to timely submit such filings in SERFF for the Department’s review and approval.