RI| Bulletin 2025-4, issued by the Rhode Island Insurance Division outlines legislative changes enacted by the Rhode Island General Assembly in 2025 impacting the insurance industry. Each change is noted below with a brief description and corresponding provisions or impacts.
Legislative Changes Summary
- Voluntary Restructuring of Solvent Insurers
- Amends the Property and Casualty Insurance Guaranty Association statute to adopt NAIC model law changes on cybersecurity, increases covered property claim limits to $1M effective 2026, and removes business transfer prohibitions for workers’ compensation insurance.
- Investments by Domestic Insurance Companies
- Repeals the 10% cap on Schedule BA assets held by insurers, allowing more investment flexibility.
- Pet Insurance Act
- Implements NAIC Pet Insurance Model Act, creates standardized definitions and training requirements for producers, and clarifies insurer compliance obligations.
- Casualty Insurance Rating
- Prohibits insurers from applying premium surcharges or penalties if a personal lines insured inquires about policy terms.
- Liability Insurance
- Requires at-fault insurers to provide claimants with a comparable vehicle after an accident, with rental charges based on local retail prices.
- Unfair Claims Settlement Practices Act
- Adjusts vehicle total loss threshold from 75% to 75–80% of fair market value, and expands required repair compensation to cover OEM/collision industry programs
- Motor Vehicle Appraisal
- Substantially revises dispute resolution process for claim value disagreements between insurer and insured/claimant.
- Liability Insurance – Rental Vehicle Coverage
- Expands rental vehicle coverage to include the insured, policy drivers, and designees unless specifically excluded.
- Workers Compensation – General Provisions
- Clarifies the compensation court’s authority over injured-on-duty state/airport employees and aligns deadlines for claiming accidental disability pensions.
- Statutory Construction Resolution
- Updates and reenacts general laws at the recommendation of the law revision office; technical statutory amendments included.
- Rare Disease Advisory Council
- Establishes a council under the Department of Health to advise, educate providers and citizens about rare diseases.
- Benefit Determination and Utilization Review Act
- Initiates a three-year pilot prohibiting prior authorization requirements for in-network primary care provider services, except for prescriptions.
- Accident and Sickness Insurance – Hearing Aid Coverage
- Raises mandatory hearing aid coverage from $1,500 to $1,750 per ear for all ages, effective January 1, 2026.
- Medicare Supplement Insurance Policies
- Adds new consumer protections to Rhode Island’s Medicare Supplement rules.
- Pediatric Autoimmune Neuropsychiatric Disorders Coverage
- Removes the sunset on statutory coverage for pediatric autoimmune neuropsychiatric disorders and related conditions.
- Acute Mental Health Crisis Coverage
- Mandates coverage for mobile response and stabilization services during acute mental health crises for plan beneficiaries.
Each legislative change may require insurers to submit new or revised filings for policy forms, rules, or rates to the Rhode Island Department of Business Regulation.