On November 5, 2012, the Rhode Island Department of Business Regulation, Insurance Division (“Department”) issued Insurance Bulletin 2012-4, which can be viewed in the list of bulletins here. The Bulletin provides that Property and Casualty insurers in Rhode Island must fill out a CAT Summary form, which tracks the number of Sandy claims received by the insurer, how much the insurer has paid out on Sandy claims, and the number of denied claims. The report must be provided to the Department on a specific scheduled basis, with the first report due on November 13, 2012. The Bulletin also provides the following, among other requirements:

  • The Department will extend timelines established by Insurance Regulation 73, but the extensions do not relieve the insurer of its obligation to acknowledge and investigate as “expeditiously as possible”
  • There is an expectation that insurers will extend deadlines and offer courtesies to claimants who have been displaced from their homes or businesses
  • All claim forms must provide the required fraud warning pursuant to R.I. Gen. Laws § 27-29-13.3
  • All insurers operating in Rhode Island must temporarily suspend requirements for premium payments
  • Vacancy provisions are suspended for those temporarily displaced for 90 days from the date of loss
  • It is inappropriate to re-rate, cancel, nonrenew, or refuse to provide insurance coverage due solely to an individual’s status as a victim or evacuee due to Sandy
  • It is not reasonable to change policyholders’ ratings classifications or increase their insurance rates solely because they are victims or evacuees

We will monitor the insurance department websites of affected states and provide further updates as we receive them.