§ 27-29-17.3 - Notice of premium or coverage changes.
SECTION 27-29-17.3
§ 27-29-17.3 Notice of premium or coveragechanges. – (a) An insurer shall provide to the first-named insured at the mailing addressshown on the policy, and to the insurance producer of record, written notice ofany premium increase and shall also provide the exact renewal premium, changein deductible, reduction in limits or coverage changes at least sixty (60) daysprior to the expiration date of the policy. If the insurer fails to providesuch notice, the coverage provided to the named insured shall remain in effectuntil notice is provided or until the effective date of replacement coverageobtained by the named insured, whichever occurs first. For the purposes of thissection, notice is considered given sixty (60) days following date of giving ofthe notice. If the named insured elects not to renew, any earned premium forthe period of extension of the terminated policy shall be calculated pro-rataat the lower of the current or previous year's rate. If the insured accepts therenewal, the premium increase, if any, and other changes shall be effective theday following the prior policy's expiration or anniversary date.
(b) This section shall not apply to:
(1) Changes in a rate or plan filed and approved by thecommissioner and applicable to an entire class of business.
(2) Changes based upon the altered nature or extent of therisk insured.
(3) Changes in policy forms filed and approved with thecommissioner and applicable to an entire class of business.