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RI S2771
Bill
Status
3/4/2026
Primary Sponsor
Ryan Pearson
Click for details
AI Summary
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Insurers must respond within 30 days of receiving a claim by either issuing a coverage determination with a good faith settlement offer or notifying the insured in writing of what additional information is needed
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Failure to comply with the 30-day requirement subjects the insurer to a penalty of $250 per day, payable directly to the insured party
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Insured parties may file written complaints with the Department of Business Regulation (DBR), which must investigate and order payment within 14 days if a violation is found
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The act preserves insured parties' rights to pursue civil actions for breach of contract or bad faith, and does not limit compensatory damages, punitive damages, or costs
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Takes effect immediately upon passage
Legislative Description
Requires insurance companies to settle claims or request additional information within 30 days of receipt of a notice of claim. Failure to comply results in $250/day payable to the insured party.
Insurance
Last Action
Introduced, referred to Senate Commerce
3/4/2026