RI S2646

Covered insurers (those with over $10 million in Rhode Island property/casualty premiums) are prohibited from underwriting or investing in new fossil fuel projects starting July 1, 2026, and must phase out all existing fossil fuel underwriting and investments by January 1, 2035.

Insurers must file annual reports disclosing fossil fuel investments, underwriting activities, financed emissions, and insured emissions, with CEO/CFO certification of accuracy required; the Department of Business Regulation must publish these reports publicly.

Insurers seeking to withdraw from Rhode Island markets must follow a structured process including one-year advance notice to policyholders, public hearings, director approval, and a minimum three-year phaseout period to prevent market disruption.

Non-compliant insurers face administrative penalties proportional to their Rhode Island market share and profits, plus up to 0.01% of net profits per day for continuing violations, and potential suspension or revocation of their license to operate in the state.

The director must submit biennial reports to the governor and legislature on implementation progress, climate risk actions, and effects on insurance affordability for low-income and underserved communities.