2019 Legislative Changes

1 Department of Business Regulation Insurance Division 1511 Pontiac Avenue, Bldg. 69-2 Cranston, Rhode Island 02920 Insurance Bulletin Number 2019-4 2019 Legislative Changes The following legislative amendments were enacted to date during the 2019 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. Travel Insurance H5207A 2019 P.L. ch. 51 Effective June 29, 2019 S0256A 2019 P.L. ch. 44 Effective June 28, 2019 This legislation sets forth standards governing travel insurance. The legislation becomes effective on October 1, 2019. Workers Comp Uninsured Protection Fund Extension H5305 2019 P.L. ch. 9 Effective March 28, 2019 S0242 2019 P.L. ch. 10 Effective March 28, 2019 This legislation extends the effective date of the Uninsured Protection Fund from injuries occurring on or after February 1, 2019 to September 1, 2019. Surplus Lines Disability Insurance H5457 2019 P.L. ch. 103 Effective July 8, 2019 S0536 2019 P.L. ch. 136 Effective July 8, 2019 This legislation provides that, notwithstanding the general bar on writing life accident and health insurance in the surplus lines market, excess disability insurance can be written in the surplus lines market. Chargeable Loss H5458 2019 P.L. ch. 183 Effective January 1, 2020 S0333A 2019 P.L. ch. 208 Effective January 1, 2020 This legislation changes the amount of a chargeable loss for purpose of renewal and surcharge from $1,500 to $3,000. 2 Open and Obvious Condition H5478a 2019 P.L. ch. 185 Effective July 15, 2019 This legislation provides that an open and obvious condition is not a bar to tort recovery. Service Contracts H5674 2019 P.L. ch. 188 Effective January 1, 2020 S0458A 2019 P.L. ch. 243 Effective January 1, 2020 This legislation defines service contracts and clarifies that such contracts are not insurance. Unfair Claims Practices Act H6101 2019 P.L. ch. 85 Effective July 2, 2019 S0849 2019 P.L. ch. 84 Effective July 2, 2019 This legislation requires (1) a physical inspection and does not allow an appraisal to be based on pictures if the damage exceeds $2,500, (2) that an initial appraisal be performed within three (3) business days of request, (3) that adjustments to condition of total loss vehicles must be made in accordance with the standards of a nationally recognized compilation of retail values and must be itemized, fair and reasonable and (4) when the insurer is not retaining salvage of a total loss vehicle, the insurer must notify the owner of the vehicle in writing of the requirements surrounding a salvage title. Workers Comp Omnibus H6134 2019 P.L. ch. 218 Effective July 15, 2019 S0909 2019 P.L. ch. 248 Effective July 15, 2019 This legislation (1) provides a right of indemnification against the employer for an insurer required to pay certain damages as a result of minors employed in violation of law (2) removes the waiting period for petitions for lump sum or structured payments, (3) repeals R.I. Gen Laws §§ 28-35-46, 47, 48, 49, 50 and 51 and (4) makes a number of technical amendments to the workers compensation law. Life Insurance H6184Aaa 2019 P.L. ch. 121 Effective July 8, 2019 S0799Aaa 2019 P.L. ch. 149 Effective July 8, 2019 This legislation prohibits a life insurer from taking certain actions related to life insurance policies solely because the individual has been issued a prescription for naloxone or has purchased naloxone. Childhood Sex Abuse Claims – Statute of Limitations S0315Aaa 2019 P.L. ch. 82 Effective July 1, 2019 This legislation extends the statute of limitations for sexual abuse to thirty-five years from the act alleged to have caused injury or seven years from discovery of the injury. Such actions are tolled for a child until the child reaches eighteen (18) years of age. 3 Pharmacy Audits H5544A 2019 P.L. ch. 276 Effective July 16, 2019 S0581A 2019 P.L. ch. 278 Effective July 16, 2019 Sets forth requirements for audits of the records of a pharmacy conducted by an insurer or the insurer’s intermediary. Healthcare Market Stability H5151A 2019 P.L. ch. 88-11 Effective July 5, 2019 Section 2 effective January 1, 2020 The bill: (1) amends the definition of “Health Insurance Coverage” in R.I. Gen. Laws § 27-18.5-2 to add short term limited duration insurance; (2) creates a state requirement, effective January 1, 2020, for applicable individuals to maintain minimum essential coverage together with a shared responsibility payment penalty imposed for failing to maintain minimal essential coverage; (3) amends a number of sections of R.I. Gen. Laws chapter 41-157 including a requirement that qualified health plans and qualified dental plans remit a monthly assessment to the Exchange; (4) establishes a state health insurance market integrity fund (a state reinsurance fund) contingent on the approval of the state’s innovation waiver request by the federal government; and (5) creates a reporting requirement for “applicable entities” providing minimum essential coverage. Explanation of Benefits Resolution S0580A 2019 Resolution 399 Resolution requesting the Rhode Island Department of Health to develop and promulgate regulations to ensure the confidential communication of sensitive medical information, including in Explanation of Benefits forms. 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.