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Committee hears bill to require 60-day notice for big homeowners insurance increases
Summary
House Bill 7,066 would require insurers to give 60 days’ notice before raising renewal premiums by more than 20% and extend nonrenewal notice to 60 days; supporters said the extra time would help homeowners find replacement coverage and prepare repairs, while DBR recommended implementation timing changes.
Chairman Azanaro introduced House Bill 7,066 on behalf of consumers seeking greater advance notice of significant homeowners-insurance premium increases.
The bill would require insurers to provide two months’ (60-day) notice before increasing any renewal premium by more than 20% and would extend the current 30-day nonrenewal notice to 60 days. The sponsor and supporters told the committee the longer notice period would give homeowners time to seek alternative coverage or complete repairs needed to qualify for new policies.
An unidentified committee member read a letter from the Department of Business Regulation noting current law requires 30 days of notice and recommending the statute be written to become effective Oct. 1 with an implementation date of Jan. 1 to allow insurers and regulators time to prepare. The DBR letter was cited as urging a practical timetable rather than an immediate effective-upon-passage requirement.
Ernie Shigalian, an insurance agent from Cranston and volunteer with the Independent Insurance Agents of Rhode Island, testified in support. Shigalian cited what he said were sharp increases in premiums and county-level nonrenewal statistics, telling the committee that in Newport County nonrenewals rose “562%” over a five-year period and that other counties saw similarly large percentage increases. He urged the Department of Business Regulation be empowered to enforce the notice requirement under Title 27.
Supporters argued the extra advance notice would be especially valuable in a state with older housing stock, where roof age, heating systems and wiring can affect insurability and consumers may need time to make repairs.
The committee took testimony and concluded the hearing on HB 7,066. No final committee action on the merits was recorded; the committee had earlier approved a procedural motion to hold bills for further study.
