Section 230-RICR-20-05-3.13 - Use of Insurance Score in Rating or UnderwritingA. No insurer is required to use an Insurance Score in rating any insurance policy. If an insurer chooses to utilize Insurance Scores in insurance rating, where applicable statutes allow such use, the insurer must, in addition to the requirements of R.I. Gen. Laws § 27-9-56, comply with the following: 1. Demonstrate the statistically predictive nature of the Insurance Score utilized in conjunction with its rate filing.2. Confirm that none of the "negative factors" listed in R.I. Gen. Laws § 27-9-56(c) have been utilized in determining an Insurance Score or in the rating or underwriting process.3. If the insurer chooses to use an Insurance Score it may do so only in accordance with R.I. Gen. Laws § 27-9-56 and this Part and may do so only upon initiation or renewal of the policy.4. If the use of an Insurance Score increases the insured's rate in any manner, including making the insured ineligible for a "tier", the insurer shall explain, in writing sent to the insured, all information required by the Federal Fair Credit Reporting Act and the insured's rights pursuant to R.I. Gen. Laws § 27-9-56(a)(2).5. If requested by the insured, pursuant to R.I. Gen. Laws § 27-9-56(a)(2), the insurer must obtain an updated Insurance Score once every two (2) years unless the insured is in the most favorably priced tier of the insurer or group or insurance score was not used for the insured when the policy was initially written. If required by R.I. Gen. Laws § 27-9-56(a)(2), once the updated Insurance Score is obtained the insurer shall: a. Provide a decreased premium to the insured at renewal, if the updated Insurance Score indicates that the insured is entitled to a decrease in premium.b. If the updated Insurance Score indicates that the insured may be charged an increased premium, the insurer may only increase the premium at renewal due to the Insurance Score if: (1) The worsening is due to a bankruptcy, tax lien, garnishment, foreclosure or judgment; or(2) A subsequent Insurance Score undertaken no sooner than six (6) months later confirms the worsening in score.6. If a credit bureau determines that disputed information is inaccurate or incorrect and such information was used in determining an insurance score which resulted in a denial, cancellation or nonrenewal of or higher premiums or less favorable policy terms for a consumer, the insurer shall, within thirty (30) days of receiving notice of correction, adjust the premium on the policy by refunding the amount of the overpayment based on the corrected insurance score retroactive to the shorter of the last twelve (12) months of coverage or the actual period of coverage.7. If the credit history is insufficient, the insurer shall follow § 15.5 of this Subchapter.8. If the insurer receives a written request from a person claiming to have been affected by an Extraordinary Life Event, the insurer shall follow § 15.6 of this Subchapter.230 R.I. Code R. 230-RICR-20-05-3.13
Amended effective 12/24/2019