230 R.I. Code R. 230-RICR-20-05-15.6

Current through December 3, 2024

Section 230-RICR-20-05-15.6 - Extraordinary Life Events

A. Notwithstanding any other law or regulation, an insurer that uses insurance scores shall, on written request from an applicant for insurance coverage or an insured, provide reasonable exceptions to the insurer's rates, rating classifications, company or tier placement, or underwriting rules or guidelines for a consumer who has experienced and whose credit history has been directly influenced by any of the following events:

1. Catastrophic event, as declared by the federal or state government;

2. Serious illness or injury, or serious illness or injury to an immediate family member;

3. Death of a spouse, child, or parent;

4. Divorce or involuntary interruption of legally-owed alimony or support payments;

5. Identity theft;

6. Temporary loss of employment for a period of 3 months or more, if it results from involuntary termination;

7. Military deployment overseas; or

8. Other events, as determined by the insurer

B. If an applicant or insured submits a request for an exception as set forth in § 15.6(A) of this Part, an insurer may, in its sole discretion:

1. Require the consumer to provide reasonable written and independently verifiable documentation of the event. Such documentation may be submitted electronically;

2. Require the consumer to demonstrate that the event had direct and meaningful impact on the consumer's credit history; and/or

3. Require that the request from the consumer be made no more than 60 days from the date of the application for insurance or the policy renewal;

C. § 15.6(B) of this Part is not mandatory. Insurers may grant the exception whether or not the consumer provides the information allowed in § 15.6(B) of this Part. Insurers may also grant an exception even if the initial request for an exception is not in writing or where the consumer asks for consideration of repeated events or the insurer has considered the event previously.

D. Notice requirements. Insurers are required to establish internal procedures for notifying an applicant or insured of the availability of Extraordinary Life Event exceptions as provided for in above § 15.6(A) of this Part, including customer notices. These notices shall be provided by the insurer any time the insurer utilizes a insurance score which has an adverse effect on the insureds rating as part of the policy issuance and/or renewal process. This notice corresponds to and shall be sent under the same conditions as the Fair Credit Reporting Act adverse action notices. Notices are not required to be filed with the Department for approval.

E. If the insurer grants an exception, an insurer may consider only credit history not affected by the event if such score can be reasonably recalculated, or shall assign a neutral or average insurance score as defined by the insurer and subject to the Department's review and approval.

F. The provisions of this Part are in addition to the provisions provided for in R.I. Gen. Laws §§ 27-6-53 and 27-9-56 and Parts 2 and 3 of this Subchapter where applicable.

230 R.I. Code R. 230-RICR-20-05-15.6