Bill Sponsors
Gu, Britto, Gallo, Bell, DiMario, Burke, Sosnowski, Kallman, Mack, and Bissaillon
Committee
Senate Commerce
Summary
Select
This legislation amends existing insurance laws to provide greater protections for homeowners. Specifically, beginning September 1, 2026, insurance companies must provide policyholders with at least two months' advance notice if their renewal premium is set to increase by more than twenty percent. Additionally, if an insurer intends to not renew a homeowner's policy, they must provide the notice of non-renewal at least two months prior to the policy's expiration. The bill establishes that violating these notice requirements constitutes a deceptive trade practice and is punishable by a fine of up to $1,000 per violation.
Sponsor
Analysis
Pros for Progressives
- Protects consumers and families from sudden financial shocks by mandating advance notice for significant insurance premium increases, allowing them time to budget or shop around.
- Enhances housing stability by ensuring homeowners have adequate time to secure alternative coverage if their policy is being dropped, preventing lapses in protection.
- Holds corporate insurers accountable by classifying violations as deceptive trade practices and imposing fines, ensuring they treat customers fairly.
Cons for Progressives
- Does not cap insurance rate increases, merely requires notice, meaning low-income homeowners can still be priced out of their coverage.
- The two-month notice period may still be insufficient for vulnerable populations to find affordable alternatives in a market with shrinking options.
- The $1,000 fine per violation may be viewed as a negligible cost of doing business for large, wealthy insurance conglomerates rather than a true deterrent.
Pros for Conservatives
- Increases market transparency by ensuring customers are fully informed of price changes, allowing for better consumer decision-making without setting price controls.
- Provides a long lead time before implementation (September 2026), giving businesses ample opportunity to adjust their administrative systems without immediate disruption.
- Maintains the sanctity of private contracts by regulating the communication of terms rather than dictating who insurers must cover or what they must charge.
Cons for Conservatives
- Imposes additional regulatory burdens on private businesses by dictating specific timelines for communication, which interferes with operational freedom.
- Creates potential legal liabilities for businesses by classifying administrative notice errors as "deceptive trade practices," which could lead to excessive litigation.
- May inadvertently cause insurers to raise rates across the board to cover the administrative costs of compliance and potential fines.
Constitutional Concerns
None Likely
Impact Overview
Groups Affected
- Homeowners
- Insurance Companies
- Insurance Agents
- Department of Business Regulation
- Residential Property Investors
Towns Affected
All
Cost to Taxpayers
None
Revenue Generated
Amount unknown
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Regulatory
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Clarity of Bill Language
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Privacy Impact
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Bill Status
Current Status
Held
Comm Passed
Floor Passed
Law
History
• 01/09/2026 Introduced, referred to Senate Commerce
Bill Text
SECTION 1. Section 27-8-11 of the General Laws in Chapter 27-8 entitled "Casualty Insurance Generally" is hereby amended to read as follows:
27-8-11. Regulations on cancellation and renewal.
(a) In addition to, and not in lieu of, any other power the commissioner has to issue rules and regulations, the commissioner of insurance may promulgate, in accordance with the procedure established in chapter 35 of title 42, reasonable rules and regulations concerning cancellation and renewal of liability and property damage insurance for automobiles rated as private passenger automobiles, homeowners insurance, residential fire insurance, or any components thereof. Those regulations may require that the insurer shall furnish to the named insured the reason, or reasons, for cancellation or nonrenewal. Those regulations shall also require that the insurer furnish, at least thirty (30) days prior to renewal, written notice of any coverage reductions, elimination, or increased deductibles not made at the request of the insured. The notice shall itemize and describe the policy coverage reductions, elimination, or increased deductibles and shall be captioned “NOTICE OF REDUCTION IN COVERAGE”. The policyholder shall be notified that the policy renewal contains the “NOTICE OF REDUCTION IN COVERAGE” by one of the following manners:
(1) By mailing the “NOTICE OF REDUCTION IN COVERAGE” separate from the renewal policy package mailing; or
(2) By printing “NOTICE OF REDUCTION IN COVERAGE ENCLOSED” on the renewal policy package envelope and including said reductions in the first few pages of the renewal policy package; or
(3) By printing “NOTICE OF REDUCTION IN COVERAGE ENCLOSED” on the first page of the renewal policy package; or
(4) If the renewal policy package is made available by email, the email notifying the policyholder of the renewal shall contain a statement that the policy contains a “NOTICE OF REDUCTION IN COVERAGE” and said reductions shall be in the first few pages of the renewal policy package.
These coverage changes must be approved by the insurance division with respect to those types of insurance defined in § 27-8-1(1) — (8), issued to non-business insureds and bodily injury and property damage liability coverage issued to non-business insureds. There shall be no liability on the part of, and no cause of action of any nature shall arise against, the commissioner of insurance or any insurer, their authorized representatives, agents, or employees, or any firm, person, or corporation furnishing to the insurer or commissioner information as to the reasons for cancellation or nonrenewal; for any statement made by any of them in any written notice of cancellation or nonrenewal; or in any other communication, oral or written, specifying the reasons for cancellation or nonrenewal; or for the providing of information pertaining to the cancellation or nonrenewal; or for statements made, or evidence submitted, at any hearing conducted in connection with the cancellation or nonrenewal.
(b) The commissioner shall promulgate regulations with respect to personal motor vehicle insurance, homeowners insurance, and residential fire insurance, or any components of that insurance requiring notification to policyholders upon renewal of any coverage reductions, elimination, or increased deductibles not at the request of the insured.
(c) Notwithstanding any law to the contrary, on and after September 1, 2026, any increase of more than twenty percent (20%) in the cost of renewal of homeowner’s insurance shall require two (2) months’ advance notice be provided by the insurer to the policyholder. If an insurer is failing to renew a homeowner’s policy, the notice of non-renewal shall be delivered to the policyholder no less than two (2) months in advance of the policy expiration.
(d) Any violation of the provisions of this section shall constitute a deceptive trade practice in violation of chapter 13.1 of title 6, and each violation shall be punishable by a fine not to exceed one thousand dollars ($1,000). LC003429 - Page 2 of 4
SECTION 2. This act shall take effect upon passage.
27-8-11. Regulations on cancellation and renewal.
(a) In addition to, and not in lieu of, any other power the commissioner has to issue rules and regulations, the commissioner of insurance may promulgate, in accordance with the procedure established in chapter 35 of title 42, reasonable rules and regulations concerning cancellation and renewal of liability and property damage insurance for automobiles rated as private passenger automobiles, homeowners insurance, residential fire insurance, or any components thereof. Those regulations may require that the insurer shall furnish to the named insured the reason, or reasons, for cancellation or nonrenewal. Those regulations shall also require that the insurer furnish, at least thirty (30) days prior to renewal, written notice of any coverage reductions, elimination, or increased deductibles not made at the request of the insured. The notice shall itemize and describe the policy coverage reductions, elimination, or increased deductibles and shall be captioned “NOTICE OF REDUCTION IN COVERAGE”. The policyholder shall be notified that the policy renewal contains the “NOTICE OF REDUCTION IN COVERAGE” by one of the following manners:
(1) By mailing the “NOTICE OF REDUCTION IN COVERAGE” separate from the renewal policy package mailing; or
(2) By printing “NOTICE OF REDUCTION IN COVERAGE ENCLOSED” on the renewal policy package envelope and including said reductions in the first few pages of the renewal policy package; or
(3) By printing “NOTICE OF REDUCTION IN COVERAGE ENCLOSED” on the first page of the renewal policy package; or
(4) If the renewal policy package is made available by email, the email notifying the policyholder of the renewal shall contain a statement that the policy contains a “NOTICE OF REDUCTION IN COVERAGE” and said reductions shall be in the first few pages of the renewal policy package.
These coverage changes must be approved by the insurance division with respect to those types of insurance defined in § 27-8-1(1) — (8), issued to non-business insureds and bodily injury and property damage liability coverage issued to non-business insureds. There shall be no liability on the part of, and no cause of action of any nature shall arise against, the commissioner of insurance or any insurer, their authorized representatives, agents, or employees, or any firm, person, or corporation furnishing to the insurer or commissioner information as to the reasons for cancellation or nonrenewal; for any statement made by any of them in any written notice of cancellation or nonrenewal; or in any other communication, oral or written, specifying the reasons for cancellation or nonrenewal; or for the providing of information pertaining to the cancellation or nonrenewal; or for statements made, or evidence submitted, at any hearing conducted in connection with the cancellation or nonrenewal.
(b) The commissioner shall promulgate regulations with respect to personal motor vehicle insurance, homeowners insurance, and residential fire insurance, or any components of that insurance requiring notification to policyholders upon renewal of any coverage reductions, elimination, or increased deductibles not at the request of the insured.
(c) Notwithstanding any law to the contrary, on and after September 1, 2026, any increase of more than twenty percent (20%) in the cost of renewal of homeowner’s insurance shall require two (2) months’ advance notice be provided by the insurer to the policyholder. If an insurer is failing to renew a homeowner’s policy, the notice of non-renewal shall be delivered to the policyholder no less than two (2) months in advance of the policy expiration.
(d) Any violation of the provisions of this section shall constitute a deceptive trade practice in violation of chapter 13.1 of title 6, and each violation shall be punishable by a fine not to exceed one thousand dollars ($1,000). LC003429 - Page 2 of 4
SECTION 2. This act shall take effect upon passage.