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Rhode IslandS27752026 Regular SessionSenate

AN ACT RELATING TO INSURANCE -- DOMESTIC INSURANCE COMPANIES .

Sponsored By: Mark P. McKenney (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 1 benefits, 3 costs, 2 mixed.

Stronger court control in insurer failures

The law replaces old receivership rules with a Superior Court–supervised process. When a Rhode Island insurer is delinquent, the court appoints the state Insurance Director as receiver to take control at once. Affiliates must turn over records, system access, and any collected premiums; that money remains the insurer’s property. Affiliates that provide key services are subject to the court’s jurisdiction in supervision or receivership. If an insurer is hazardous, the Commissioner can require a deposit or bond up to the contract’s one‑year value to protect policyholders.

New rules for out-of-state insurers

Rhode Island now matches any fees and obligations another state puts on Rhode Island insurers or producers. Policies for people or property in Rhode Island must be placed through a Rhode Island‑licensed producer; home‑state placement for multistate risks is allowed only if that state grants the same to Rhode Island producers. For foreign insurers that are unsafe, insolvent, or breaking the law, the Commissioner uses general penalty powers instead of automatic suspension. Producers and attorneys who handle noncompliant business face penalties under the general penalty law. Old reciprocity statutes and related reporting rules are repealed.

New penalties for device insurance sellers

If a vendor or its staff violate the portable electronics insurance rules, the Insurance Commissioner can act under the general penalty law. This replaces fixed, listed penalties with discretionary enforcement. Sellers face more uncertainty about possible fines or actions.

Higher penalties for unfair practices

Insurers that fail to follow § 27-29-4.4 or its rules face civil fines up to $5,000 per violation. Violations of the Fraternal Code are penalized under the Commissioner’s general penalty law.

Lower fines for fire-loss, health rules

Breaking fire‑loss information or confidentiality rules now brings a civil penalty up to $100 per violation. Willful violations of accident and sickness insurance rules carry up to $100 per violation. The Commissioner can also suspend or revoke an insurer’s or producer’s license for willful violations.

State hurricane loss panel eliminated

The state commission on hurricane loss projection methodology is repealed. Insurers, actuaries, and state officials who used its work no longer have that state body.

Sponsors & Cosponsors

Sponsor

  • Mark P. McKenney

    Democratic • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 107 • No: 0

House vote • 6/8/2026

DOMESTIC INSURANCE COMPANIES PASSAGE IN CONCURRENCE

Yes: 69 • No: 0

Senate vote • 5/12/2026

RELATING TO INSURANCE -- DOMESTIC INSURANCE COMPANIES Passage

Yes: 38 • No: 0

Actions Timeline

  1. Signed by Governor — Chapter 201

    6/19/2026Governor

  2. Transmitted to Governor

    6/16/2026Governor

  3. House passed Sub A in concurrence

    6/8/2026House

  4. Placed on the House Consent Calendar (06/08/2026)

    6/5/2026House

  5. Committee recommends passage of Sub A in concurrence

    6/2/2026

  6. Scheduled for consideration (06/02/2026)

    5/29/2026

  7. Referred to House Corporations

    5/13/2026House

  8. Senate passed Sub A

    5/12/2026Senate

  9. Placed on Senate Calendar (05/12/2026)

    5/6/2026Senate

  10. Committee recommends passage of Sub A

    5/5/2026

  11. Proposed Substitute

    5/4/2026

  12. Scheduled for consideration (05/05/2026)

    5/1/2026

  13. Committee recommended measure be held for further study

    4/28/2026

  14. Scheduled for consideration (04/28/2026)

    4/24/2026

  15. Committee recommended measure be held for further study

    3/31/2026

  16. Scheduled for hearing and/or consideration (03/31/2026)

    3/27/2026

  17. Introduced, referred to Senate Commerce

    3/4/2026Senate

Bill Text

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