Bill Sponsors
Appollonio, Thompson, Dimitri, Famiglietti, Britto, Urso, and Burke
Committee
Senate Commerce
Summary
Select
This legislation amends Rhode Island's "Deceptive Trade Practices" laws to explicitly include the insurance industry. It adds definitions for "insurer," "claimant," and "insurance claim handling services," ensuring that deceptive acts regarding insurance claims are covered by the law. Additionally, starting March 31, 2026, the bill makes it a specific deceptive trade practice for anyone advising or assisting a veteran with Department of Veterans Affairs disability benefits to engage in unfair or deceptive acts. This aims to protect consumers dealing with insurance claims and veterans seeking benefits from predatory practices.
Sponsor
Analysis
Pros for Progressives
- Strengthens consumer protection by explicitly bringing insurance claim handling under the Deceptive Trade Practices Act, preventing corporations from exploiting policyholders.
- Protects a vulnerable population by outlawing predatory practices against veterans filing for disability benefits, ensuring they receive the support they earned without exploitation.
- Increases corporate accountability by expanding the legal definitions of deceptive practices, giving regular people more power to challenge unfair treatment by large insurance entities.
Cons for Progressives
- The specific protections for veterans regarding disability benefits are delayed until March 2026, leaving them potentially exposed to predatory practices in the interim.
- While it defines "deceptive" practices, the bill does not explicitly cap the fees that third-party advisors can charge veterans, potentially allowing financial exploitation that falls short of fraud.
- Relies on individual claimants or the Attorney General to initiate action, which may not be sufficient to deter systemic abuse without a dedicated oversight body or automatic penalties.
Pros for Conservatives
- Demonstrates strong support for veterans by targeting those who would defraud military personnel seeking disability benefits, aligning with patriotic values.
- Clarifies the legal code by adding specific definitions for insurance terms, potentially reducing ambiguity in contract disputes and upholding the rule of law.
- Targets specific bad actors and fraudulent behavior rather than imposing blanket bans on industries, aiming to punish dishonesty rather than commerce itself.
Cons for Conservatives
- Expands government regulation over the insurance industry, potentially increasing compliance costs and administrative burdens for private businesses.
- Increases the liability of businesses by broadening the scope of the Deceptive Trade Practices Act, which could lead to an increase in frivolous litigation against insurers.
- Interferes with the private marketplace by regulating the relationship between veterans and private advisors, restricting how services are offered and advertised.
Constitutional Concerns
None Likely
Impact Overview
Groups Affected
- Veterans
- Insurance Companies
- Policyholders
- Third-party Claims Advisors
- Attorneys
Towns Affected
All
Cost to Taxpayers
None
Revenue Generated
None
BillBuddy Impact Ratings
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Public Services
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Regulatory
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Clarity of Bill Language
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Enforcement Provisions
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Environmental Impact
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Privacy Impact
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Bill Status
Current Status
Held
Comm Passed
Floor Passed
Law
History
• 01/23/2026 Introduced, referred to Senate Commerce
• 03/27/2026 Scheduled for hearing and/or consideration (03/31/2026)
• 03/31/2026 Committee recommended measure be held for further study
• 03/27/2026 Scheduled for hearing and/or consideration (03/31/2026)
• 03/31/2026 Committee recommended measure be held for further study
Bill Text
SECTION 1. Section 6-13.1-1 of the General Laws in Chapter 6-13.1 entitled "Deceptive Trade Practices" is hereby amended to read as follows:
6-13.1-1. Definitions. [Effective January 1, 2026; Effective until March 31, 2026.] As used in this chapter:
(1) “Claimant” means any natural person or business entity asserting rights to payment, benefits, or performance under an insurance policy, including policyholders, insureds, third-party beneficiaries, or assignees of rights or benefits.
(1)(2) “Documentary material” means the original or a copy of any book, record, report, memorandum, paper, communication, tabulation, map, chart, photograph, mechanical transcription, or other tangible document or recording wherever situated.
(2)(3) “Examination” of documentary material includes the inspection, study, or copying of any documentary material, and the taking of testimony under oath or acknowledgment in respect of any documentary material or copy of any documentary material.
(4) “Insurer” means an entity that issues or administers insurance contracts, policies, or certificates under the laws of this state.
(5) “Insurance claim handling services” means activities including investigation, adjustment, appraisal, negotiation, or settlement of insurance claims performed by an insurer or any person or entity acting directly or indirectly on behalf of or at the direction of an insurer.
(3)(6) “Person” means natural persons, corporations, trusts, partnerships, incorporated or unincorporated associations, and any other legal entity.
(4)(7) “Rebate” means the return of a payment or a partial payment that serves as a discount or reduction in price.
(5)(8) “Trade” and “commerce” mean the advertising, offering for sale, sale, or distribution of any services and any property, tangible or intangible, real, personal, or mixed, and any other article, commodity, or thing of value wherever situate, and include any trade or commerce directly or indirectly affecting the people of this state.
(6)(9) “Unfair methods of competition and unfair or deceptive acts or practices” means any one or more of the following:
(i) Passing off goods or services as those of another;
(ii) Causing likelihood of confusion or of misunderstanding as to the source, sponsorship, approval, or certification of goods or services;
(iii) Causing likelihood of confusion or of misunderstanding as to affiliation, connection, or association with, or certification by, another;
(iv) Using deceptive representations or designations of geographic origin in connection with goods or services;
(v) Representing that goods or services have sponsorship, approval, characteristics, ingredients, uses, benefits, or quantities that they do not have or that a person has a sponsorship, approval, status, affiliation, or connection that he or she does not have;
(vi) Representing that goods are original or new if they are deteriorated, altered, reconditioned, reclaimed, used, or secondhand; and if household goods have been repaired or reconditioned, without conspicuously noting the defect that necessitated the repair on the tag that contains the cost to the consumer of the goods;
(vii) Representing that goods or services are of a particular standard, quality, or grade, or that goods are of a particular style or model, if they are of another;
(viii) Disparaging the goods, services, or business of another by false or misleading representation of fact;
(ix) Advertising goods or services with intent not to sell them as advertised;
(x) Advertising goods or services with intent not to supply reasonably expectable public demand, unless the advertisement discloses a limitation of quantity;
(xi) Making false or misleading statements of fact concerning the reasons for, existence of, or amounts of price reductions;
(xii) Engaging in any other conduct that similarly creates a likelihood of confusion or of LC003904 - Page 2 of 6 misunderstanding;
(xiii) Engaging in any act or practice that is unfair or deceptive to the consumer;
(xiv) Using any other methods, acts, or practices that mislead or deceive members of the public in a material respect;
(xv) Advertising any brand name goods for sale and then selling substituted brand names in their place;
(xvi) Failure to include the brand name and/or manufacturer of goods in any advertisement of the goods for sale, and, if the goods are used or secondhand, failure to include the information in the advertisement;
(xvii) Advertising claims concerning safety, performance, and comparative price unless the advertiser, upon request by any person, the consumer council, or the attorney general, makes available documentation substantiating the validity of the claim;
(xviii) Representing that work has been performed on or parts replaced in goods when the work was not in fact performed or the parts not in fact replaced;
(xix) Failing to separately state the amount charged for labor and the amount charged for services when requested by the purchaser as provided for in § 44-18-12(b)(3);
(xx) Advertising for sale at a retail establishment the availability of a manufacturer’s rebate by displaying the net price of the advertised item (the price of the item after the rebate has been deducted from the item’s price) in the advertisement, unless the amount of the manufacturer’s rebate is provided to the consumer by the retailer at the time of the purchase of the advertised item. It shall be the retailer’s burden to redeem the rebate offered to the consumer by the manufacturer; or
(xxi) Advertising, displaying, or offering a price for live-event tickets or short-term lodging in violation of 16 C.F.R. Part 464.
6-13.1-1. Definitions. [Effective March 31, 2026.] As used in this chapter:
(1) “Claimant” means any natural person or business entity asserting rights to payment, benefits, or performance under an insurance policy, including policyholders, insureds, third-party beneficiaries, or assignees of rights or benefits.
(1)(2) “Documentary material” means the original or a copy of any book, record, report, memorandum, paper, communication, tabulation, map, chart, photograph, mechanical transcription, or other tangible document or recording wherever situated.
(2)(3) “Examination” of documentary material includes the inspection, study, or copying of any documentary material, and the taking of testimony under oath or acknowledgment in respect LC003904 - Page 3 of 6 of any documentary material or copy of any documentary material.
(4) “Insurer” means an entity that issues or administers insurance contracts, policies, or certificates under the laws of this state.
(5) “Insurance claim handling services” means activities including investigation, adjustment, appraisal, negotiation, or settlement of insurance claims performed by an insurer or any person or entity acting directly or indirectly on behalf of or at the direction of an insurer.
(3)(6) “Person” means natural persons, corporations, trusts, partnerships, incorporated or unincorporated associations, and any other legal entity.
(4)(7) “Rebate” means the return of a payment or a partial payment that serves as a discount or reduction in price.
(5)(8) “Trade” and “commerce” mean the advertising, offering for sale, sale, or distribution of any services and any property, tangible or intangible, real, personal, or mixed, and any other article, commodity, or thing of value wherever situate, and include any trade or commerce directly or indirectly affecting the people of this state.
(6)(9) “Unfair methods of competition and unfair or deceptive acts or practices” means any one or more of the following:
(i) Passing off goods or services as those of another;
(ii) Causing likelihood of confusion or of misunderstanding as to the source, sponsorship, approval, or certification of goods or services;
(iii) Causing likelihood of confusion or of misunderstanding as to affiliation, connection, or association with, or certification by, another;
(iv) Using deceptive representations or designations of geographic origin in connection with goods or services;
(v) Representing that goods or services have sponsorship, approval, characteristics, ingredients, uses, benefits, or quantities that they do not have or that a person has a sponsorship, approval, status, affiliation, or connection that the person does not have;
(vi) Representing that goods are original or new if they are deteriorated, altered, reconditioned, reclaimed, used, or secondhand; and if household goods have been repaired or reconditioned, without conspicuously noting the defect that necessitated the repair on the tag that contains the cost to the consumer of the goods;
(vii) Representing that goods or services are of a particular standard, quality, or grade, or that goods are of a particular style or model, if they are of another;
(viii) Disparaging the goods, services, or business of another by false or misleading representation of fact; LC003904 - Page 4 of 6
(ix) Advertising goods or services with intent not to sell them as advertised;
(x) Advertising goods or services with intent not to supply reasonably expectable public demand, unless the advertisement discloses a limitation of quantity;
(xi) Making false or misleading statements of fact concerning the reasons for, existence of, or amounts of price reductions;
(xii) Engaging in any other conduct that similarly creates a likelihood of confusion or of misunderstanding;
(xiii) Engaging in any act or practice that is unfair or deceptive to the consumer;
(xiv) Using any other methods, acts, or practices that mislead or deceive members of the public in a material respect;
(xv) Advertising any brand name goods for sale and then selling substituted brand names in their place;
(xvi) Failure to include the brand name and/or manufacturer of goods in any advertisement of the goods for sale, and, if the goods are used or secondhand, failure to include the information in the advertisement;
(xvii) Advertising claims concerning safety, performance, and comparative price unless the advertiser, upon request by any person, the consumer council, or the attorney general, makes available documentation substantiating the validity of the claim;
(xviii) Representing that work has been performed on or parts replaced in goods when the work was not in fact performed or the parts not in fact replaced;
(xix) Failing to separately state the amount charged for labor and the amount charged for services when requested by the purchaser as provided for in § 44-18-12(b)(3);
(xx) Advertising for sale at a retail establishment the availability of a manufacturer’s rebate by displaying the net price of the advertised item (the price of the item after the rebate has been deducted from the item’s price) in the advertisement, unless the amount of the manufacturer’s rebate is provided to the consumer by the retailer at the time of the purchase of the advertised item. It shall be the retailer’s burden to redeem the rebate offered to the consumer by the manufacturer;
(xxi) Advertising, displaying, or offering a price for live-event tickets or short-term lodging in violation of 16 C.F.R. Part 464; or
(xxii) Engaging in any act or practice that is unfair or deceptive by a person advising or assisting any veteran filing a claim for disability benefits with the Department of Veterans Affairs.
SECTION 2. This act shall take effect upon passage.
6-13.1-1. Definitions. [Effective January 1, 2026; Effective until March 31, 2026.] As used in this chapter:
(1) “Claimant” means any natural person or business entity asserting rights to payment, benefits, or performance under an insurance policy, including policyholders, insureds, third-party beneficiaries, or assignees of rights or benefits.
(4) “Insurer” means an entity that issues or administers insurance contracts, policies, or certificates under the laws of this state.
(5) “Insurance claim handling services” means activities including investigation, adjustment, appraisal, negotiation, or settlement of insurance claims performed by an insurer or any person or entity acting directly or indirectly on behalf of or at the direction of an insurer.
(i) Passing off goods or services as those of another;
(ii) Causing likelihood of confusion or of misunderstanding as to the source, sponsorship, approval, or certification of goods or services;
(iii) Causing likelihood of confusion or of misunderstanding as to affiliation, connection, or association with, or certification by, another;
(iv) Using deceptive representations or designations of geographic origin in connection with goods or services;
(v) Representing that goods or services have sponsorship, approval, characteristics, ingredients, uses, benefits, or quantities that they do not have or that a person has a sponsorship, approval, status, affiliation, or connection that he or she does not have;
(vi) Representing that goods are original or new if they are deteriorated, altered, reconditioned, reclaimed, used, or secondhand; and if household goods have been repaired or reconditioned, without conspicuously noting the defect that necessitated the repair on the tag that contains the cost to the consumer of the goods;
(vii) Representing that goods or services are of a particular standard, quality, or grade, or that goods are of a particular style or model, if they are of another;
(viii) Disparaging the goods, services, or business of another by false or misleading representation of fact;
(ix) Advertising goods or services with intent not to sell them as advertised;
(x) Advertising goods or services with intent not to supply reasonably expectable public demand, unless the advertisement discloses a limitation of quantity;
(xi) Making false or misleading statements of fact concerning the reasons for, existence of, or amounts of price reductions;
(xii) Engaging in any other conduct that similarly creates a likelihood of confusion or of LC003904 - Page 2 of 6 misunderstanding;
(xiii) Engaging in any act or practice that is unfair or deceptive to the consumer;
(xiv) Using any other methods, acts, or practices that mislead or deceive members of the public in a material respect;
(xv) Advertising any brand name goods for sale and then selling substituted brand names in their place;
(xvi) Failure to include the brand name and/or manufacturer of goods in any advertisement of the goods for sale, and, if the goods are used or secondhand, failure to include the information in the advertisement;
(xvii) Advertising claims concerning safety, performance, and comparative price unless the advertiser, upon request by any person, the consumer council, or the attorney general, makes available documentation substantiating the validity of the claim;
(xviii) Representing that work has been performed on or parts replaced in goods when the work was not in fact performed or the parts not in fact replaced;
(xix) Failing to separately state the amount charged for labor and the amount charged for services when requested by the purchaser as provided for in § 44-18-12(b)(3);
(xx) Advertising for sale at a retail establishment the availability of a manufacturer’s rebate by displaying the net price of the advertised item (the price of the item after the rebate has been deducted from the item’s price) in the advertisement, unless the amount of the manufacturer’s rebate is provided to the consumer by the retailer at the time of the purchase of the advertised item. It shall be the retailer’s burden to redeem the rebate offered to the consumer by the manufacturer; or
(xxi) Advertising, displaying, or offering a price for live-event tickets or short-term lodging in violation of 16 C.F.R. Part 464.
6-13.1-1. Definitions. [Effective March 31, 2026.] As used in this chapter:
(1) “Claimant” means any natural person or business entity asserting rights to payment, benefits, or performance under an insurance policy, including policyholders, insureds, third-party beneficiaries, or assignees of rights or benefits.
(4) “Insurer” means an entity that issues or administers insurance contracts, policies, or certificates under the laws of this state.
(5) “Insurance claim handling services” means activities including investigation, adjustment, appraisal, negotiation, or settlement of insurance claims performed by an insurer or any person or entity acting directly or indirectly on behalf of or at the direction of an insurer.
(i) Passing off goods or services as those of another;
(ii) Causing likelihood of confusion or of misunderstanding as to the source, sponsorship, approval, or certification of goods or services;
(iii) Causing likelihood of confusion or of misunderstanding as to affiliation, connection, or association with, or certification by, another;
(iv) Using deceptive representations or designations of geographic origin in connection with goods or services;
(v) Representing that goods or services have sponsorship, approval, characteristics, ingredients, uses, benefits, or quantities that they do not have or that a person has a sponsorship, approval, status, affiliation, or connection that the person does not have;
(vi) Representing that goods are original or new if they are deteriorated, altered, reconditioned, reclaimed, used, or secondhand; and if household goods have been repaired or reconditioned, without conspicuously noting the defect that necessitated the repair on the tag that contains the cost to the consumer of the goods;
(vii) Representing that goods or services are of a particular standard, quality, or grade, or that goods are of a particular style or model, if they are of another;
(viii) Disparaging the goods, services, or business of another by false or misleading representation of fact; LC003904 - Page 4 of 6
(ix) Advertising goods or services with intent not to sell them as advertised;
(x) Advertising goods or services with intent not to supply reasonably expectable public demand, unless the advertisement discloses a limitation of quantity;
(xi) Making false or misleading statements of fact concerning the reasons for, existence of, or amounts of price reductions;
(xii) Engaging in any other conduct that similarly creates a likelihood of confusion or of misunderstanding;
(xiii) Engaging in any act or practice that is unfair or deceptive to the consumer;
(xiv) Using any other methods, acts, or practices that mislead or deceive members of the public in a material respect;
(xv) Advertising any brand name goods for sale and then selling substituted brand names in their place;
(xvi) Failure to include the brand name and/or manufacturer of goods in any advertisement of the goods for sale, and, if the goods are used or secondhand, failure to include the information in the advertisement;
(xvii) Advertising claims concerning safety, performance, and comparative price unless the advertiser, upon request by any person, the consumer council, or the attorney general, makes available documentation substantiating the validity of the claim;
(xviii) Representing that work has been performed on or parts replaced in goods when the work was not in fact performed or the parts not in fact replaced;
(xix) Failing to separately state the amount charged for labor and the amount charged for services when requested by the purchaser as provided for in § 44-18-12(b)(3);
(xx) Advertising for sale at a retail establishment the availability of a manufacturer’s rebate by displaying the net price of the advertised item (the price of the item after the rebate has been deducted from the item’s price) in the advertisement, unless the amount of the manufacturer’s rebate is provided to the consumer by the retailer at the time of the purchase of the advertised item. It shall be the retailer’s burden to redeem the rebate offered to the consumer by the manufacturer;
(xxi) Advertising, displaying, or offering a price for live-event tickets or short-term lodging in violation of 16 C.F.R. Part 464; or
(xxii) Engaging in any act or practice that is unfair or deceptive by a person advising or assisting any veteran filing a claim for disability benefits with the Department of Veterans Affairs.
SECTION 2. This act shall take effect upon passage.