Strengthens consumer protections by including definitions related directly to deceptive trade practices inherent in the insurance claim process.

Rhode Island Bill Summary: Insurance Claim Deceptive Trade Practices

This bill would strengthen consumer protection laws in Rhode Island by adding new definitions specifically related to deceptive or dishonest practices that can occur during the insurance claims process. By updating the state's existing Deceptive Trade Practices law to include insurance-specific language, the bill aims to make it clearer what kinds of behaviors by insurance companies count as illegal or unfair treatment of consumers when they file a claim.

The bill would primarily affect Rhode Island residents who deal with insurance companies after filing a claim — for example, after a car accident, home damage, or a medical situation. It could also affect insurance companies doing business in the state, who would face clearer legal standards about what practices are considered deceptive or prohibited. By spelling out these definitions more explicitly, consumers would have a better-defined legal basis to challenge unfair treatment they experience during the claims process.

Currently, the bill has been introduced in the Rhode Island House of Representatives and referred to the House Corporations Committee. The committee has recommended the bill be held for further study, meaning lawmakers want more time to review it before taking action. A hearing is scheduled for February 11, 2026. No final vote has been taken yet, so the bill has not become law.