TITLE 27
Insurance
CHAPTER 27-29
Unfair Competition and Practices
SECTION 27-29-13.2
§ 27-29-13.2 Cancellation provisions for
return of unearned premium.
Every insurance policy issued and approved for use in Rhode Island shall
provide clear language on the method of calculation of the unearned premium
portion to be returned to the insured if the policy is cancelled. Insurance
policies shall not state "refer to manuals" to determine the amount of unearned
premium to be returned. For all cancellations, the actual percentage retained
by the insurer shall be discernible in the policy cancellation provisions. If
a policy is canceled using a short-rate table, the insurer shall provide the
short-rate table within the cancellation provisions of the insurance policy so
that an insured can make an informed decision when cancelling a policy midterm.
Insurers shall not impose cancellation fees when insurance policies are
cancelled using short rate tables.
History of Section.
(P.L. 2005, ch. 69, § 1; P.L. 2005, ch. 79, § 1; P.L. 2009, ch. 303,
§ 6; P.L. 2009, ch. 304, § 6.)
