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SB 905

AN ACT RELATING TO INSURANCE -- UNFAIR CLAIMS SETTLEMENT PRACTICES ACT

2025 Regular Session Introduced by Lou DiPalma and 5 co-sponsors

Rhode Island bill SB 905 modifies insurance claims handling regulations to address unfair settlement practices, currently under committee review for further study.

05/20/2025 Committee recommended measure be held for further study
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WeVote Research Nonpartisan
Bill Summary · SB 905

Legislative bill overview

SB 905 proposes amendments to Rhode Island's Unfair Claims Settlement Practices Act, which governs how insurance companies must handle customer claims. The bill was introduced in March 2025 and referred to the Senate Health and Human Services Committee, which recommended further study in May rather than advancing it immediately.

Why is this important

Insurance claims practices directly affect consumers' ability to recover compensation after accidents, injuries, or property damage. Strengthening unfair practices regulations can provide better consumer protections, though it may also impact insurance company operations and potentially affect premium costs.

Potential points of contention

  • Consumer protection vs. business burden: Stricter claims handling requirements could improve consumer outcomes but may increase operational costs for insurers
  • Specificity of amendments: The bill's exact provisions aren't detailed in available records, making it unclear whether changes are minor clarifications or substantial regulatory expansions
  • Committee hesitation: The "held for further study" recommendation suggests legislators had concerns about the bill's current form warranting deliberation before advancement

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

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