2018 Legislative Changes

1 Department of Business Regulation Insurance Division 1511 Pontiac Avenue, Bldg. 69-2 Cranston, Rhode Island 02920 Insurance Bulletin Number 2018-14 2018 Legislative Changes The following legislative amendments were enacted to date during the 2018 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. Voluntary Restructuring and Protected Cell Updates H8161A 2018 P.L. ch. 218 Effective July 2, 2018 S3008 2018 P.L. ch. 290 Effective July 2, 2018 This legislation updates Rhode Island’s law on Voluntary Restructuring regarding Insurance Business Transfers and adding voluntary restructuring to the purpose of the Protected Cell Companies Act. Life Insurance Disclosure Notice H7124A 2018 P.L. ch. 126 Effective January 1, 2019 S2048A 2018 P.L. ch. 196 Effective January 1, 2019 This legislation requires life insurers to inform consumers of life settlement options, and the Department has issued a Notice and placed it on the Department’s website. The notice may also be accessed through Insurance Bulletin 2018-12. Medical Malpractice Statute of Limitations H7512 2018 P.L. ch. 154 Effective July 2, 2018 This legislation amends R.I. Gen. Laws § 9-1-14.1 to alter the statute of limitations with regard to medical malpractice claims. Uninsured Motorist Data Reporting H7607A 2018 P.L. ch. 160 Effective January 1, 2019 S2426 2018 P.L. ch. 245 Effective January 1, 2019 This legislation amends R.I. Gen. Laws § 31-47.4-2 to require insurers to report weekly to the uninsured motorist identification database The Department will be updating 2 Insurance Bulletin 2015-1 accordingly. Aftermarket Body Parts H8013Aaa 2018 P.L. ch. 321 Effective July 4, 2018 S2679B 2018 P.L. ch. 298 Effective July 4, 2018 This legislation extends the requirements of R.I. Gen. Laws § 27-10.2-2 to all claims, all parts and to 48 months beyond the date of manufacture and adds a restriction to insurers when said “OEM parts” are used. This legislation does not apply to the repair or replacement of motor vehicle glass performed by licensed motor vehicle glass repair shops. The Department will be amending 230-RICR-20-50-3, 230-RICR-20-50-4 and 230-RICR-20-40-2 accordingly. Vacant Property S2444B 2018 P.L. ch. 078 Effective January 1, 2019 H8340A 2018 P.L. ch. 100 Effective January 1, 2019 This legislation prohibits residential property insurers from excluding coverage for vandalism or malicious mischief unless the dwelling has been vacant for more than sixty (60) consecutive days immediately before the loss. Workers Compensation Omnibus H8215A 2018 P.L. ch. 98 Effective June 28, 2018 S2924B 2018 P.L. ch. 86 Effective, June 28, 2018 This legislation alters the waiver of claim of common law rights in R.I. Gen. Laws § 28-29- 19; increases the workers compensation advisory council by adding one additional judge and eliminating a self-insured employer representative; alters R.I. Gen. Laws § 28-30-4 by adding power of a notary public to the Workers Compensation Administrator and amends R.I. Gen. Laws § 28-36-15 and R.I. Gen. Laws chapter 28-53 Mastectomy Treatment H7002 2018 P.L. ch. 114 Effective January 1, 2019 S2224 2018 P.L. ch. 204 Effective January 1, 2019 This legislation revises the current mastectomy coverage mandate to eliminate cost- sharing. SHOP Innovation Waiver H7121 2018 P.L. ch. 124 Effective July 2, 2018 S2019 2018 P.L. ch. 194 Effective July 2, 2018 This legislation authorizes RI health benefit exchange to seek a waiver under the ACA to allow qualified small business owners & sole proprietors to purchase qualified health benefit plans offered by the exchange and not be forced into the individual market. 3 FDA Approved Contraceptives H7625A 2018 P.L. ch. 230 Effective April 1, 2019 and July 1, 2019 S2529A 2018 P.L. ch. 234 Effective April 1, 2019 and July 1, 2019 Requires individual and group health insurance contracts to provide a twelve-month supply of all FDA-approved contraceptive drugs, and for EOHHS to apply for a federal waiver for Medicaid to accomplish the same goal. Insurance Coverage for Mental Illness and Substance Abuse H7806A 2018 P.L. ch. 169 Effective January 1, 2019 S2540A 2018 P.L. ch. 253 Effective January 1, 2019 Includes behavioral health counseling visits and medication maintenance visits as primary care visits for patient cost-sharing requirements under the provisions of a health plan, requires a report from OHIC, and adds to OHIC’s statutory duties. Reinsurance Program S2934A 2018 P.L. ch. 278 Effective July 2, 2018 Establishes the Rhode Island reinsurance program and restricted receipt account, from federal funding, administered by the Director of the Rhode Island health benefits exchange, to mitigate the impact of high-risk individuals on health insurance rates. 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 October 26, 2018 Revised: November 28, 2018 Technical Revision: January 30, 2019