Requires insurance companies to settle claims or request additional information within 30 days of receipt of a notice of claim. Failure to comply results in $250/day payable to the insured party.

Plain-English Summary

This bill would require insurance companies operating in Rhode Island to take action on a claim within 30 days of receiving it. Specifically, within that 30-day window, an insurer must either settle the claim or formally ask the policyholder for any additional information it needs to process it. The goal is to prevent insurance companies from leaving customers waiting indefinitely without any response or resolution after filing a claim.

If an insurance company fails to meet this 30-day deadline, the bill sets a financial penalty: the insurer would owe the policyholder $250 for every day it remains out of compliance. This means the longer a company delays without acting, the more money it would be required to pay directly to the person who filed the claim — not to the state government.

This bill would primarily affect Rhode Island residents who have insurance policies and file claims, as well as the insurance companies that serve them. For everyday policyholders, it could mean faster responses and greater accountability when dealing with insurers during stressful situations like accidents, property damage, or other covered events. For insurance companies, it would create a clear legal timeline and a financial incentive to process claims promptly.

The bill was introduced in the Rhode Island Senate and referred to the Senate Commerce Committee. The committee has recommended holding it for further study, meaning it has not yet moved forward in the legislative process, and a hearing is scheduled for March 31, 2026.