§ 31-47-1.1 Legislative findings andintent. – WHEREAS, the General Assembly has conducted extensive hearings on the issue ofmandatory automobile insurance and finds that:
(1) Mandatory automobile liability insurance will notguarantee that all drivers will carry automobile liability insurance and inother states with mandatory automobile insurance nearly twenty percent (20%) totwenty-five percent (25%) of drivers do not comply with the state mandate anddrive without insurance;
(2) Because of the evidence described in subdivision (1),Rhode Island drivers will need to carry additional insurance, to protectthemselves from harm by uninsured motorists;
(3) All presently uninsured drivers who try to acquireautomobile insurance will be placed in the assigned risk pool regardless of agood driving record, at an excessive rate;
(4) The state of Rhode Island ranks the eighth (8th) highestin the country for the cost of automobile insurance litigation per capita, thishigh cost of legal action adds to the already high cost of automobile insurance;
(5) No-fault insurance can reduce the cost of automobileinsurance by reducing litigation and right-to-sue, but evidence also indicatesthat no-fault insurance can increase the cost of insurance if not properlyenacted;
(6) A proposed rate increase in the Rhode Island AutoInsurance Plan of thirty-four percent (34%) has been granted without fulldisclosure by insurance companies of their investments, profits, losses,administrative costs and other pertinent information to justify the rateincrease;
(7) Fraud, theft and inflated automobile repair costs aresignificant elements of the increased cost of automobile insurance which mustbe reduced;
(8) The Governor of the state has agreed to immediatelyinstitute a blue ribbon task force to investigate the causes for the high costof automobile insurance, recommend remedies to reduce the cost of automobileinsurance and prepare legislation for introduction. The scope of the task forceshall include, but not be limited to, the reviewing of:
(A) Procedures and processes concerning claims, appraisals,adjustments and auto repair charges,
(B) Costs of litigation, including the imposition of ceilingor caps on legal fees,
(C) Disclosure by insurance companies of all costs to dobusiness, including those that affect premium rates,
(D) Enforcement and restitution procedures.
(ii) The task force shall make specific recommendations tothe general assembly pertaining to the alternatives of no-fault insurance,traditional liability and so-called "choice" legislation which provides anoption of no-fault or traditional liability insurance.
§ 31-47-1.1 Legislative findings andintent. – WHEREAS, the General Assembly has conducted extensive hearings on the issue ofmandatory automobile insurance and finds that:
(1) Mandatory automobile liability insurance will notguarantee that all drivers will carry automobile liability insurance and inother states with mandatory automobile insurance nearly twenty percent (20%) totwenty-five percent (25%) of drivers do not comply with the state mandate anddrive without insurance;
(2) Because of the evidence described in subdivision (1),Rhode Island drivers will need to carry additional insurance, to protectthemselves from harm by uninsured motorists;
(3) All presently uninsured drivers who try to acquireautomobile insurance will be placed in the assigned risk pool regardless of agood driving record, at an excessive rate;
(4) The state of Rhode Island ranks the eighth (8th) highestin the country for the cost of automobile insurance litigation per capita, thishigh cost of legal action adds to the already high cost of automobile insurance;
(5) No-fault insurance can reduce the cost of automobileinsurance by reducing litigation and right-to-sue, but evidence also indicatesthat no-fault insurance can increase the cost of insurance if not properlyenacted;
(6) A proposed rate increase in the Rhode Island AutoInsurance Plan of thirty-four percent (34%) has been granted without fulldisclosure by insurance companies of their investments, profits, losses,administrative costs and other pertinent information to justify the rateincrease;
(7) Fraud, theft and inflated automobile repair costs aresignificant elements of the increased cost of automobile insurance which mustbe reduced;
(8) The Governor of the state has agreed to immediatelyinstitute a blue ribbon task force to investigate the causes for the high costof automobile insurance, recommend remedies to reduce the cost of automobileinsurance and prepare legislation for introduction. The scope of the task forceshall include, but not be limited to, the reviewing of:
(A) Procedures and processes concerning claims, appraisals,adjustments and auto repair charges,
(B) Costs of litigation, including the imposition of ceilingor caps on legal fees,
(C) Disclosure by insurance companies of all costs to dobusiness, including those that affect premium rates,
(D) Enforcement and restitution procedures.
(ii) The task force shall make specific recommendations tothe general assembly pertaining to the alternatives of no-fault insurance,traditional liability and so-called "choice" legislation which provides anoption of no-fault or traditional liability insurance.
§ 31-47-1.1 Legislative findings andintent. – WHEREAS, the General Assembly has conducted extensive hearings on the issue ofmandatory automobile insurance and finds that:
(1) Mandatory automobile liability insurance will notguarantee that all drivers will carry automobile liability insurance and inother states with mandatory automobile insurance nearly twenty percent (20%) totwenty-five percent (25%) of drivers do not comply with the state mandate anddrive without insurance;
(2) Because of the evidence described in subdivision (1),Rhode Island drivers will need to carry additional insurance, to protectthemselves from harm by uninsured motorists;
(3) All presently uninsured drivers who try to acquireautomobile insurance will be placed in the assigned risk pool regardless of agood driving record, at an excessive rate;
(4) The state of Rhode Island ranks the eighth (8th) highestin the country for the cost of automobile insurance litigation per capita, thishigh cost of legal action adds to the already high cost of automobile insurance;
(5) No-fault insurance can reduce the cost of automobileinsurance by reducing litigation and right-to-sue, but evidence also indicatesthat no-fault insurance can increase the cost of insurance if not properlyenacted;
(6) A proposed rate increase in the Rhode Island AutoInsurance Plan of thirty-four percent (34%) has been granted without fulldisclosure by insurance companies of their investments, profits, losses,administrative costs and other pertinent information to justify the rateincrease;
(7) Fraud, theft and inflated automobile repair costs aresignificant elements of the increased cost of automobile insurance which mustbe reduced;
(8) The Governor of the state has agreed to immediatelyinstitute a blue ribbon task force to investigate the causes for the high costof automobile insurance, recommend remedies to reduce the cost of automobileinsurance and prepare legislation for introduction. The scope of the task forceshall include, but not be limited to, the reviewing of:
(A) Procedures and processes concerning claims, appraisals,adjustments and auto repair charges,
(B) Costs of litigation, including the imposition of ceilingor caps on legal fees,
(C) Disclosure by insurance companies of all costs to dobusiness, including those that affect premium rates,
(D) Enforcement and restitution procedures.
(ii) The task force shall make specific recommendations tothe general assembly pertaining to the alternatives of no-fault insurance,traditional liability and so-called "choice" legislation which provides anoption of no-fault or traditional liability insurance.
