2017 Legislative Changes

Department of Business Regulation Insurance Division 1511 Pontiac Avenue, Bldg. 69-2 Cranston, Rhode Island 02920 Insurance Bulletin Number 2017-2 2017 Legislative Changes The following legislative amendments were enacted to date during the 2017 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. Insurance Financial S783A 2017 P.L. ch. 389 Effective October 5, 2017 H6365 2017 P.L. ch. 434 Effective October 5, 2017 This legislation was introduced at the request of the Department. The provisions are: 1. Credit for Reinsurance – Amend R.I. Gen. Laws § 27-1.1 to bring the section into compliance with the most recent version of the National Association of Insurance Commissioners (NAIC) model act. 2. Protected Cell – Amends R.I. Gen. Laws § 27-64-6 to limit the restrictions on guarantee fund protections and assessments on protected cell companies. This change should allow insurance transferred into a protected cell that had been subject to a guarantee fund when originally written to continue with guarantee fund protections. 3. Premium Tax – Amends R.I. Gen. Laws § 44-17-1 to change the definition of “qualifying jobs” to one that has been determined to properly reflect the intent of the statute while allowing more flexibility in the information to be obtained. Insurance Consumer Protection H5937 2017 P.L. ch. 196 Effective July 18, 2017 This legislation was introduced at the request of the Department. The provisions are: 1. Service of Process – Amends R.I. Gen. Laws § 27-2-14 to eliminate the requirement that the Department send service of process to foreign insurers by certified mail. The Department will be issuing a bulletin requesting that every 2 insurer for which it is statutorily obligated to accept service to provide an email address to which that service is to be forwarded. 2. Producer Continuing Education Board – Repeals R.I. Gen. Laws § 27-3.2-5 to eliminate the volunteer board that approves continuing education courses. The Department will transition to utilizing professional providers to approve continuing education courses. This change will not affect the reciprocity granted to courses approved by reciprocal states. 3. Volunteer Drivers - Adds R.I. Gen. Laws § 27-9-4(f) to prohibit insurers from refusing to issue motor vehicle liability insurance, impose a surcharge or otherwise increase the rate for a motor vehicle policy solely because the applicant is a volunteer driver. Volunteer driver is defined as a person who provides services without compensation to a non-profit agency or charitable organization. 4. Unlicensed Public Adjuster – Adds R.I. Gen. Laws § 27-9.1-4(26) to prevent insurers from negotiating claims with an unlicensed public adjuster. 5. Disability Insurance – Amends R.I. Gen. Laws §§ 27-18-19 and 27-18-67 to clarify that the Department has authority over Disability Insurance policies. Insurance Repeal H5934 2017 P.L. ch. 195 Effective July 18, 2017 This legislation was introduced at the request of the Department. It’s provisions repeal R.I. Gen. Laws § 27-9-51 and R.I. Gen. Laws §§ 27-75. Condominium Insurance H5223A 2017 P.L. ch. 78 Effective June 29, 2017 S0198Aaa 2017 P.L. ch. 88 Effective June 29, 2017 This legislation amends R.I. Gen. Laws § 34-36.1-3.13 to entitle a condominium unit owner to a written copy of an insurance company damage appraisal within fourteen calendar days of the date of the unit owner's request from the condominium association or within fourteen (14) days of the receipt of the appraisal by the association. Workers Compensation Omnibus H6224A 2017 P.L. ch. 106 Effective July 21, 2017 S0917A 2017 P.L. ch. 266 Effective July 21, 2017 This legislation repeals the “material hindrance” definition for injuries on and after July 1, 2023; extends the implementation of the uninsured employers fund until 2018 and changes the name of the Donley center to the Chief Judge Robert F. Arrigan center. 3 Domestic Partnerships H5951A 2017 P.L. ch 197 Effective July 18, 2017 S0432A 2017 P.L. ch. 317 Effective September 27, 2017 This legislation amends R.I. Gen. Laws §§ 27-29-2 and 27-29-4 defining a domestic partnership and prohibits insurance companies from any distinction or discrimination against individuals in a domestic partner relationship regarding fees for policies issued or renewed in this state. This legislation applies to all policies issued or renewed on or after January 1, 2018. Formulary Changes H6322 2017 P.L. ch. 274 Effective July 21, 2017 Amends R.I. Gen. Laws §§ 27-18-50, 27-19-42, 27-20-37, 27-20.1-15 and 27-41-51 to specify that formulary changes removing a covered prescription drug or making a change in the drug's preferred or tiered cost sharing status, that has an adverse subscriber impact, receive required statutory notification. Chiropractic Coverage S0789Aaa 2017 P.L. ch. 165 Effective April 1, 2018 Amends R.I. Gen. Laws §§ 27-18-25, 27-19-74, 27-20-70, 27-41-87 and 27-38.2-1, adding a requirement to utilize a medical necessity standard for provider payment, and to require insurance reimbursement for medically necessary evidence-based chiropractic and osteopathic non-opioid treatments for pain. Coverage for Standard Fertility Preservation Services H6170A 2017 P.L. ch. 150 Effective July 5, 2018 S0821A 2017 P.L. ch. 132 Effective July 5, 2018 Amends R.I. Gen. Laws §§ 27-18-30, 27-19-23, 27-20-20 and 27-41-33 to mandate insurance coverage for medically necessary expenses for standard fertility preservation services when a medical treatment may directly or indirectly cause iatrogenic infertility. "Iatrogenic infertility" means an impairment of fertility because of surgery, radiation, chemotherapy or other medical treatment affecting the reproductive organs or processes. Special Commission to Access and Make Recommendations on Health Insurance Issues S1010 2017 Resolution 364 Report due March 1, 2018 Resolution creates a 12 member Commission to examine and make recommendations on the health insurance issues prevalent in RI relating to consumer protection and choice, coverage affordability and quality, and market stability. 4 Recommendations for the Development of a Statewide Healthcare System Plan S0993 2017 Resolution 353 Report due January 1, 2018 Resolution to request EOHHS, DOH & OHIC to develop the methodology pursuant to R.I. Gen. Laws § 23-81-4 to inform a statewide health care system plan. 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. Elizabeth Kelleher Dwyer Superintendent of Insurance Effective - August 3, 2017 Amended – December 8, 2017