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HB 8219

AN ACT RELATING TO INSURANCE -- RHODE ISLAND INSURANCE MARKET PROTECTION ACT

2026 Regular Session Introduced by Jennifer Boylan and 9 co-sponsors

Rhode Island will require insurers to phase out fossil fuel underwriting and investments, aligning with science-based climate targets and imposing annual reporting and penalties.

05/05/2026 Committee recommended measure be held for further study
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Bill Summary · HB 8219

Summary: HB 8219 — Rhode Island Insurance Market Protection Act (2026)

Purpose and Intent

  • Establishes a Rhode Island framework to align insurers’ investments and underwriting with science-based climate goals.
  • Aims to protect homeowners and the broader public from climate-related financial and physical risks by limiting insurance industry involvement in fossil fuels.
  • Purports to help Rhode Island meet state climate objectives (net-zero by 2050) and promote market resilience in the face of climate change.

Key Provisions and Changes

New Chapter: Rhode Island Insurance Market Protection Act (Chapter 84, Title 27)

  • Defines a set of terms to govern covered insurers, emissions accounting, and compliance requirements (Section 27-84-2).

Covered Insurer (definitions)

  • Applies to property and casualty insurers with:
    • Direct P&C premiums in RI over $10 million, reported on Schedule T.
    • Activities or investments that pose climate-transition or physical risk.
    • Director can determine applicability if in public interest (27-84-2(1)).

Emissions and Financing Metrics

  • Financed Emissions: GHG emissions tied to insurer investments (baseline data to include fossil fuel companies/projects; department to designate additional asset classes).
  • Insured Emissions: GHG emissions tied to insurer underwriting (including fossil fuel companies/projects; methodologies guided by PCAF, FIT, SBTi; alignment with Scope 1–3).
  • Definitions direct the department to use recognized frameworks and ensure consistent, transparent disclosures.

Climate Leadership Targets for Insurers (Implementation)

  • The Department must:

    • July 1, 2027: Report budgetary impacts to leadership.
    • Jan 1, 2028: Implement filing process for required insurer reports.
    • Align investments and underwriting with science-based targets:
    • Prohibit underwriting of any new fossil fuel projects starting July 1, 2026.
    • By July 1, 2028: unwind/terminate outstanding commitments to underwrite new fossil fuel projects.
    • By Jan 1, 2035: phase out underwriting for all existing fossil fuel projects and companies; establish milestones.
    • Prohibit new fossil fuel investments starting July 1, 2026; unwind/terminate new investments by July 1, 2028; phase out existing investments by Jan 1, 2035.
    • Require insurers to certify compliance as a licensure condition (by Jan 1, 2028) including transition plans and progress.
    • Annual review and public posting of reports.

  • Reporting requirements (annual, due 6 months after fiscal year end, starting by July 1, 2028):

    • Investments in fossil fuel entities/projects, including new fossil fuel projects.
    • Financed emissions and insured emissions.
    • Underwriting exposure to fossil fuel entities/projects (in dollars, disaggregated by company/project).
    • Timelines, methodologies, and progress toward compliance.
    • Additional department-requested information.

  • Certification (CEO/CFO) that progress is being made and no new fossil fuel underwriting/investment is occurring.

  • Ability for the director to hire outside experts to assist, paid by the insurer (advisory capacity).

Statewide Withdrawal Restrictions (Leaving RI Market)

  • Covered insurers may withdraw from RI market only after a formal informational filing and director approval, including:
    • 30-day notice to policyholders of withdrawal intent and terms.
    • Nonrenewals begin no earlier than 1 year and 90 days after filing.
    • Policyholder notices at least 1 year before nonrenewal and again 90 days before.
    • Withdrawals phased in over at least 3 years, with equitable treatment across insureds.

  • Provisions for replacement carriers: insurer may transfer business to replacement carrier(s) with director approval, maintaining regulatory timelines.

  • Director can waive certain withdrawal timing and notice requirements if needed to protect solvency or minimize market impact.

Compliance, Penalties, and Enforcement

  • Violations may incur:
    • Administrative penalties (including proportionate share of RI market, profits-based penalties, and per-day penalties for continuing violations).
    • Suspension or revocation of certificate of authority.
  • Ongoing reporting requirements with potential semiannual updates and a plan of compliance.
  • Repeated violations (three times in five years) may trigger additional penalties.

Reporting and Oversight

  • Biennial, public, and anonymized/aggregated reporting on:
    • Investments in fossil fuels, financed emissions, insured emissions, and penalties.
    • Market readiness for climate risk and energy transition.
    • Potential legislative or regulatory gaps.

Rules, Severability, and Effective Date

  • Department to promulgate regulations to implement the act.
  • Provisions severable; act takes effect upon passage.

Who or What Would Be Affected

  • Primary: Covered insurers (RI-licensed property and casualty insurers with substantial RI premiums) and their investment/underwriting activities tied to fossil fuels.
  • RI Department of Business Regulation (DBR) would regulate, monitor, enforce, and publish annual reports.
  • Policyholders and consumers could see shifts in underwriting behavior and market availability as fossil fuel underwriting and investments are phased out.
  • Potential financial and market impact assessments and possible carrier withdrawals or replacements in RI.

Procedural and Timeline Highlights

  • Prohibition on underwriting new fossil fuel projects begins July 1, 2026.
  • Unwind and terminate new fossil fuel underwriting commitments by July 1, 2028.
  • Phase out underwriting for existing fossil fuel projects/companies by Jan 1, 2035.
  • Prohibition on investing in new fossil fuel projects begins July 1, 2026.
  • Unwind/terminate new fossil fuel investments by July 1, 2028.
  • Phase out all fossil fuel investments by Jan 1, 2035.
  • Certification and reporting regime begins by 2028, with ongoing annual/biannual reporting.
  • Withdrawal procedures for insurers leaving RI are tightly regulated with notice, minimum transition periods, and potential replacement carrier pathways.

Practical Implications

  • Creates a framework to align RI insurers with climate targets, potentially reducing RI’s exposure to transition risks in the fossil fuel sector.
  • Could increase costs or reduce availability of certain insurance lines in high-risk fossil fuel contexts, at least during transition.
  • Establishes state authority to influence investment and underwriting strategies of large insurers operating in Rhode Island.

Compiled from official sources — confirm details with the bill’s official record.

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