Rhode Island House Bill H7066

Rhode Island 2026 Regular Session

• Introduced: 1/14/26
• Refer: 1/14/26

Caption

Requires homeowner’s insurance providers to provide two months’ notice before increasing any policy renewal premium more than 20% and a violation constitutes a deceptive trade practice punishable by a fine not to exceed $1,000.

Impact

The impact of HB 7066 is significant as it amends existing regulations within the state's insurance laws, specifically focusing on the limitations prescribed for policy cancellations and renewals, particularly for homeowners insurance. By mandating advance notice of substantial premium increases, the bill reinforces consumer rights and promotes transparency within the insurance market. This change is expected to help homeowners better prepare for potential financial impacts related to their insurance policies, thereby fostering a more stable housing economy in the state.

Summary

House Bill 7066 aims to protect homeowners by requiring insurance providers to give a two-month notice prior to any increase of more than 20% in policy renewal premiums. This legislation comes in response to growing homeowner concerns about sudden and steep premium hikes, which can strain household budgets. The bill introduces a regulatory framework managed by the state's insurance commissioner, who will be empowered to enforce compliance with these notice requirements for renewal and cancellation policies. Specifically, insurers must notify policyholders of any upcoming changes to their premiums or coverage at least 60 days in advance.

Contention

While the bill has garnered support from consumer advocates who view it as a crucial enhancement to homeowner protections, there are concerns raised by some insurance industry representatives. They argue that the two-month notice requirement could hinder their ability to make necessary adjustments in response to fluctuating risk factors and market conditions. Notably, opponents of the bill claim that such regulations may lead to increased administrative costs for insurers, which could ultimately result in higher premiums for consumers. Emphasizing the need for a balance between consumer protection and the operational flexibility of insurers remains a point of contention in the discussions surrounding HB 7066.