Section 230-RICR-20-05-13.5 - Notice of Hurricane DeductiblesA. Insurers are required to provide clear and prominent notice of all hurricane deductibles. Notices of hurricane deductibles must comply with the provisions of this Part as well as the provisions of Part 14 of this Subchapter. 1. The notice shall be included in the policy issuance or renewal package or by a separate mailing sent at the time of policy issuance or renewal. 2. The notice shall clearly and fully disclose all details pertaining to all hurricane deductibles. a. While the information provided will vary depending upon the specifics of the deductible, at a minimum the insurer must explain how the deductible will be applied (e.g. applied as a percentage of loss or as a percentage of Coverage A) and the details regarding the trigger of the deductible regardless of whether it is stated as a percentage or otherwise. b. The purpose of the notice is to assure that the insured will have all information necessary to make an informed decision concerning the coverage, exclusions and deductibles in the policy. c. Insurers are strongly encouraged to include the actual dollar amount of the deductible on the notice. If the insurer is unable to do so, the notice must specify that the actual dollar amount is included on the declarations page.B. Insurers must offer at least two practical examples of how the hurricane deductible(s) work. 1. If the insurer is offering both flat dollar and percentage hurricane deductibles, the insurer must provide at least one example of each. 2. The examples do not have to be tailored to the insured value of the specific property but must show clearly how the deductible works in a hurricane scenario (i.e. a five percent (5%) deductible on a home with an insured value of $200,000 means that the insured must pay the first $10,000 of the covered loss). 3. The actual dollar amount of a percentage deductible applicable to the policy must be shown on the declaration page.C. The provisions of this Part provide the minimum that must be included in the notice. Insurers may provide any other information to assist in the insureds understanding of the deductible and its application to the insurance policy. D. The institution and/or modification of a hurricane deductible is considered a material change and is subject to the requirements of Part 14 of this Subchapter.230 R.I. Code R. 230-RICR-20-05-13.5