Basic Property Insurance Inspection and Placement Program (Rhode Island Joint Reinsurance Association / Rhode Island FAIR Plan)

What this document is

230-RICR-20-05-11: Basic Property Insurance Inspection and Placement Program (Rhode Island Joint Reinsurance Association / Rhode Island FAIR Plan) is a regulation published by Rhode Island Department of Business Regulation, filed with the RI Department of State Office of Regulations (rules.sos.ri.gov). It is one of the Rhode Island documents that insurance license exam questions are written from, including rhode island property & casualty, rhode island personal lines practice questions. This page summarizes it and points to the official version, which is the text to rely on.

Sections cited in practice questions

Each practice answer shows the exact passage it comes from. These are sections of this document that questions cite, with a short excerpt from the source text.

• 230-RICR-20-05-11 § 11.5(A) (Provisional Binders)

  “To prevent lapses of insurance coverage for risks eligible under this Program before coverage has been made available or declined, a provisional binder affording the insurance requested, subject to all provisions of this Program, including but not limited to a subsequent inspection of the property...”

• 230-RICR-20-05-11 § 11.8(B) (Reasonable Underwriting Standards)

  “The Association shall not decline or cancel any risk for reasons of neighborhood or area location or any environmental hazard beyond the control of the property owner.”

• 230-RICR-20-05-11 § 11.12(A) (Cancellation and Nonrenewal)

  “All Insurers participating in this Program and the Association on their own business shall give thirty (30) days notice prior to cancellation or non-renewal of any risk eligible under this Program except in the following cases: 1. Owner or occupant incendiarism; 2. Material misrepresentation; 3. Non-payment of premium;”

• 230-RICR-20-05-11 § 11.6(B)-(C) (Limits of Coverage and Deductibles)

  “Standard and percentage deductibles, percentage participation clauses, and other underwriting devices may be imposed by the Association on any commercial, or non-owner occupied residential risk to meet special problems of insurability. In addition, the Association may require large or special...”

• 230-RICR-20-05-11 § 11.3(A)(7) (Definitions: Basic Property Insurance, lead liability and farm risks)

  “Lead liability insurance for any pre-1978 residential rental property, either by endorsement to a homeowners or dwelling liability policy or as a "stand alone" lead poisoning liability insurance policy. It shall not include automobile or farm risks, with the exception of lead liability coverage as...”

• 230-RICR-20-05-11 § 11.3.A (Definitions - Basic Property Insurance)

  “"Basic Property Insurance" means, in addition to any and all coverages specifically enumerated in R.I. Gen. Laws § 27-33-10, insurance against direct loss to property as defined and limited in standard fire policies in: 1. Extended coverage; 2. Vandalism and malicious mischief; 3. Broad and special...”

• 230-RICR-20-05-11 § 11.5.A (Provisional Binders)

  “To prevent lapses of insurance coverage for risks eligible under this Program before coverage has been made available or declined, a provisional binder affording the insurance requested, subject to all provisions of this Program, including but not limited to a subsequent inspection of the property...”

• 230-RICR-20-05-11 § 11.8.A.7 (Reasonable Underwriting Standards)

  “The right to decline or cancel insurance on any building where it is vacant or where sixty five percent (65%) of the building is unoccupied, unless the building is undergoing rehabilitation. Upon request, the Association must be provided with a schedule for such rehabilitation;”

• 230-RICR-20-05-11 § 11.12.A (Cancellation and Nonrenewal)

  “All Insurers participating in this Program and the Association on their own business shall give thirty (30) days notice prior to cancellation or non-renewal of any risk eligible under this Program except in the following cases: 1. Owner or occupant incendiarism; 2. Material misrepresentation; 3. Non-payment of premium;”

• 230-RICR-20-05-11 § 11.12.B (Cancellation and Nonrenewal)

  “When a policy is cancelled or non-renewed, other than for non-payment of premiums or the insured's having obtained substitute coverage or if the policy had been issued through the Association, the insurer shall notify the insured and the insured's producer, if any, of possible eligibility for...”

• 230-RICR-20-05-11 § 11.2.A (Purpose)

  “The purpose of this Regulation is to implement the Basic Property Insurance Inspection and Placement Program (hereinafter "this Program") as follows: 1. To make Basic Property Insurance available to qualified applicants who have been unable to secure such insurance in the normal market, subject to...”

• 230-RICR-20-05-11 § 11.8.A.1 (Reasonable Underwriting Standards)

  “The right to decline or cancel insurance because of the physical condition of the property, such as its construction, heating, wiring, evidence of unrepaired damage or general deterioration (however, the mere fact that a property does not satisfy all current building code specifications would not,...”

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Questions about this source

More Rhode Island sources

• General Laws of Rhode Island § 27-29-4 - Unfair methods of competition and unfair or deceptive acts or practices definedState statute
• R.I. Gen. Laws Title 27, Chapter 18: Accident and Sickness Insurance PoliciesState statute
• R.I. Gen. Laws Title 27, Chapters 2, 9.4, 13.1 and 16: Foreign Insurance Companies; Insurance Binders as Evidence of Coverage; Examinations; Unauthorized Insurance BusinessState statute
• R.I. Gen. Laws Title 27, Chapters 18.6 and 50: Large Group Health Insurance Coverage and the Small Employer Health Insurance Availability ActState statute
• R.I. Gen. Laws Title 27, Chapters 4.8 and 37: Group Life Insurance and Cancellation of Group InsuranceState statute
• R.I. Gen. Laws Title 27, Chapter 34.3: Rhode Island Life and Health Insurance Guaranty Association ActState statute
• R.I. Gen. Laws Title 27, Chapters 4, 4.3, 4.4, 4.9 and 4.10: Life Insurance Policies and Reserves; Standard Nonforfeiture Law for Life Insurance; Standard Nonforfeiture Law for Individual Deferred Annuities; Beneficiaries' Bill of Rights; Mandatory Disclosure of Alternatives to Lapse or SurrenderState statute
• R.I. Gen. Laws Title 27, Chapters 18.2 and 34.2: Medicare Supplement Insurance Policies and Long-Term Care InsuranceState statute