# RI Insurance Bulletin 2003-18: Property & Casualty - 2003 Legislative Changes > Rhode Island · Agency guidance · In force URL: https://www.frixlaw.com/law-library/statutes/RI_INS_B_2003_18 ## Section - **Citation:** RI Insurance Bulletin 2003-18 - **Heading:** Property & Casualty - 2003 Legislative Changes - **Jurisdiction:** Rhode Island - **Kind:** Agency guidance - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** Rhode Island DBR Insurance Bulletins and Guidance / Property & Casualty - 2003 Legislative Changes ## Text Department of Business Regulation 1511 Pontiac Avenue Cranston, RI 02920 Insurance Bulletin Number 2003-18 Property & Casualty - 2003 Legislative Changes The following legislative amendments were enacted during the 2003 session of the Rhode Island General Assembly. This information is provided for informational purposes only and may not be an all-inclusive list of amendments that impact the Property & Casualty industry. Insurers should refer to the referenced bills to determine the impact these bills have on the insurer in order to be in compliance with these recent amendments. S0911: Exceptions to Licensing Public Laws 03-411 Effective: August 6, 2003 Amendments to R.I. Gen. Laws § 27-2.4-5. These amendments add back the exemption for rental car companies and their employees that offer, in connection with and incidental to rental of vehicles, various optional insurance coverage during the term of the rental agreement which term shall not exceed forty five (45) days. The exemption mirrors language under R.I. Gen. Laws § 27-16-1.2(10) that was inadvertently omitted when Chapter 2.4 replaced Chapter 2.3. S840/H5091: Property Insurance Public Laws 03-102/03-105 Effective: July 3, 2003 Amendments to R.I. Gen. Laws § 27-5-3.2. These amendments provide that a holder of a mortgage would not be entitled to payment from property insurance proceeds if the insurance proceeds equals less than three thousand five hundred dollars ($3,500.00), and for which such holder of a mortgage is otherwise entitled to payment, unless no liability exists as to the mortgagor. S0431/H5063: Cancellation/Nonrenewal of Standard Fire Public Laws 03-101/03-104 Effective: July 3, 2003 Amendments to R.I. Gen. Laws § 27-5-3.4. These amendments remove the certified mail, return receipt requirement for cancellation or nonrenewal of standard fire insurance policies. First class mail is now required. Proof of mailing by US Postal Service certificate of mailing is sufficient proof of notice lation/Nonrenewal of Standard Fire Public Laws 03-101/03-104 Effective: July 3, 2003 Amendments to R.I. Gen. Laws § 27-5-3.4. These amendments remove the certified mail, return receipt requirement for cancellation or nonrenewal of standard fire insurance policies. First class mail is now required. Proof of mailing by US Postal Service certificate of mailing is sufficient proof of notice. S137/H5362: Use of Credit Rating Public Laws 03-370/03-316 Effective: January 4, 2004 Amendments to R.I. Gen. Laws § 27-6-53 and R.I. Gen. Laws § 27-9-56. These amendments establish additional restrictions on insurers use of credit for private passenger and homeowners insurance. Also clarifies that any increase/decrease in rates as a result of updated credit score must be done at renewal. S0022/H6066: Standards for Use of Aftermarket Parts Public Laws 03-368/03-239 Effective: July 17, 2003 Amendments to R.I. Gen. Laws § 27-10.2-3. These amendments establish new standards for the use of after market parts. S280/H5368: Payment of Premium- Cancellation Public Laws 03-334/03-315 Effective: January 1, 2004 Amendments to R.I. Gen. Laws § 27-29-13. These amendments introduce a six (6) month installment payment option for private passenger vehicle insurance in addition to the twelve (12) month option plan currently required under statute. The six (6) month plan allows insurers to require thirty five percent (35%) payment at time of issuance with balance to be paid in three (3) subsequent and equal monthly installments. The service charge has increased from three dollars ($3.00) to five dollars ($5.00) for such payment plans. It also sets a maximum amount that may be levied for late payments of ten dollars ($10.00). A late fee may only be imposed if payment is received more than five (5) business days following date payment is due. S404/H5901: Unfair Competition and Practices Public Laws 03-231/03-251 Effective: July 15, 2003 Amendments to R.I. Gen. Laws § 27-29-17 e dollars ($5.00) for such payment plans. It also sets a maximum amount that may be levied for late payments of ten dollars ($10.00). A late fee may only be imposed if payment is received more than five (5) business days following date payment is due. S404/H5901: Unfair Competition and Practices Public Laws 03-231/03-251 Effective: July 15, 2003 Amendments to R.I. Gen. Laws § 27-29-17. These amendments mandate notice of nonrenewal, notice of premium or coverage changes and proof of notice requirements for commercial property, commercial liability (other than aviation and employers liability policies) and commercial multi-peril policies. (These sections do not apply to reinsurance, residual risk markets, workers compensation, multi-state risks, policies subject to retrospective rating plans or excess or umbrella policies). S281/H5476: Basic Property Insurance Defined Public Laws 03-335/03-357 Effective: January 1, 2004 Amendments to R.I. Gen. Laws § 27-33-10. Expands FAIR Plan coverage to include general liability for one (1) to four (4) family owner and nonowner occupied dwellings either by endorsement or as a stand-alone policy. The amendment also require that rates for such coverage shall be calculated to be self-supporting consistent with sound actuarial principles. S668/H5714: Owners’ Liability for Acts of Others Public Laws 03-117/03-115 Effective: July 7, 2003 (With a scheduled repeal date of July 1, 2004) Amendments to R.I. Gen. Laws § 31-33-6. Limits the liability of a lessor of a short-term rental motor vehicle or truck to two hundred fifty thousand dollars ($250,000) for bodily injury to or death of one (1). person, five hundred thousand dollars ($500,000) for bodily injury to or death of two (2) or more persons and twenty five thousand ($25,000) because of injury to or destruction of property of others in any one accident S433/H6021: Insurance Premium Finance Agreements Public Laws 03-079/03-082 Effective: July 1, 2003 Repeals R.I. Gen s ($250,000) for bodily injury to or death of one (1). person, five hundred thousand dollars ($500,000) for bodily injury to or death of two (2) or more persons and twenty five thousand ($25,000) because of injury to or destruction of property of others in any one accident S433/H6021: Insurance Premium Finance Agreements Public Laws 03-079/03-082 Effective: July 1, 2003 Repeals R.I. Gen. Laws § 27-40 and enacts new statute under Banking Laws, R.I. Gen. Laws § 19-14.6. S0434/H6018: Order to Cease & Desist Public Laws 03-068/03-057 Effective: June 27, 2003 Amendments to R.I. Gen. Laws § 42-14-16.1. These amendments allow the Department to issue cease & desist orders against persons conducting activities in violation of state insurance laws. Hearings are subject to the Administrative Procedures Act. Workers’ Compensation S0857: Workers’ Compensation Insurance Fund Public Laws 03-410 Effective: August 6, 2003 Repeals R.I. Gen. Laws § 27-7.2 in its entirety and reenacts the “Workers’ Compensation Insurance Fund” in the public laws. S626/H5600: Secondary Provisions for Workers’ Compensation Public Laws 03-395/03-388 Effective: July 31, 2003 Amendments to R.I. Gen. Laws § 28-29, § 28-30, § 28-33, § 28-35, § 28-36, § 28-37. These amendments make changes to procedures, benefits, insurance and general provisions under the Act. It also makes failure to secure workers’ compensation coverage a felony. Copies of Rhode Island General Laws are accessible by visiting the Secretary of State's website at http://www.rilin.state.ri.us/statutes/statutes.html. Copies of Senate and House Bills are accessible by visiting the General Assembly’s website at: http://dirac.rilin.state.ri.us/BillStatus/webclass1.asp. Marilyn Shannon McConaghy Director, Department of Business Regulation October 3, 2003 ## Nearby sections - [RI Insurance Bulletin 2002-3 Third Party Administrators](https://www.frixlaw.com/law-library/statutes/RI_INS_B_2002_3.md) - [RI Insurance Bulletin 2002-11 Service Fees and Charges with regard to Property & Casualty Insurance](https://www.frixlaw.com/law-library/statutes/RI_INS_B_2002_11.md) - [RI Insurance Bulletin 2002-13 Form and Rate Filing Fees](https://www.frixlaw.com/law-library/statutes/RI_INS_B_2002_13.md) - [RI Insurance Bulletin 2002-16 Use of Credit for Rating and Underwriting of Homeowners and Personal Motor Vehicle Insurance](https://www.frixlaw.com/law-library/statutes/RI_INS_B_2002_16.md) - [RI Insurance Bulletin 2002-17 Record Retention Requirements](https://www.frixlaw.com/law-library/statutes/RI_INS_B_2002_17.md) - [RI Insurance Bulletin 2003-2 Mold Exclusions/Limitations Property & Casualty Insurance](https://www.frixlaw.com/law-library/statutes/RI_INS_B_2003_2.md) - [RI Insurance Bulletin 2003-18 Property & Casualty - 2003 Legislative Changes](https://www.frixlaw.com/law-library/statutes/RI_INS_B_2003_18.md) - [RI Insurance Bulletin 2004-9 Insurers' Obligations under Contractors' Registration Law Notice of Cancellation or Failure to Renew Policies](https://www.frixlaw.com/law-library/statutes/RI_INS_B_2004_9.md) - [RI Insurance Bulletin 2004-11 Property & Casualty and Workers' Compensation 2004 Legislative Changes](https://www.frixlaw.com/law-library/statutes/RI_INS_B_2004_11.md) - [RI Insurance Bulletin 2005-3 Worker Compensation Insurance - Reporting of Rhode Island Taxpayer Identification Numbers](https://www.frixlaw.com/law-library/statutes/RI_INS_B_2005_3.md) - [RI Insurance Bulletin 2005-7 Filings of Previously Approved Forms](https://www.frixlaw.com/law-library/statutes/RI_INS_B_2005_7.md) - [RI Insurance Bulletin 2005-9 Insurance Rating for Nonbusiness Policies - "Flex" Rating](https://www.frixlaw.com/law-library/statutes/RI_INS_B_2005_9.md) - [RI Insurance Bulletin 2005-12 Property & Casualty and Workers' Compensation - 2005 Legislative Changes](https://www.frixlaw.com/law-library/statutes/RI_INS_B_2005_12.md) - [RI Insurance Bulletin 2005-13 Marketing Activity for Medicare Part D](https://www.frixlaw.com/law-library/statutes/RI_INS_B_2005_13.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/RI_INS_B_2003_18. Check the current official text before relying on it. Not legal advice.