Rhode Island 2026 Regular Session

Rhode Island House Bill H7517

Introduced
2/6/26  

Caption

RELATING TO COURTS AND CIVIL PROCEDURE -- PROCEDURE GENERALLY --, CAUSES OF ACTION

Impact

If passed, H7517 will amend existing statutes concerning causes of action against insurers, enabling insured individuals to file claims for compensatory and punitive damages when their insurers refuse to honor claims in bad faith. Key revisions include emphasizing the insurer’s obligation to conduct thorough and reasonable investigations of claims. This could significantly shift the landscape for insurers operating within the state, potentially leading to increased litigation and changes in insurance claim handling processes, which may drive reform in insurance practices towards greater transparency and fairness.

Summary

House Bill H7517 aims to strengthen consumer protections in the realm of insurance claims by expanding the definitions of unfair claims settlement practices. The bill enhances clarity regarding an insured’s right to pursue legal remedies in instances where insurers act in bad faith by refusing to pay or settle claims. This legislation introduces a more robust framework for accountability within the insurance industry, and it seeks to ensure insured parties are treated fairly and equitably by their insurance providers.

Contention

The bill has faced some contention concerning how broadly it defines 'unfair claims settlement practices'. Critics argue that expanding the definitions may lead to an influx of litigation against insurers for what could be seen as standard business practices. Proponents assert that the changes are necessary to hold insurers accountable and protect consumers from predatory practices. The potential for increased operational costs for insurers due to heightened scrutiny and litigation risk has also been a topic of discussion among lawmakers and industry stakeholders.

Companion Bills

No companion bills found.

Previously Filed As

RI H6370

Provide to provide greater clarity in insurance claim settlements, the appraisal process and procedural safeguards to enhance consumer protections against bad faith practices by insurers.

RI S0270

Prohibits gender transition procedures for all minors, uses of public funds, discipline for health care providers, a 30 year statute of limitation, after reaching age of majority, and right to a civil action for damages.

RI S0277

Provides equal Medicare for infants born-alive as a result of abortion procedure/natural delivery with violations subject to criminal penalties for medical personnel/loss of license/civil action for damages.

RI H5959

Required public auctions by any city or town of real estate or an interest therein to only be done in person and not by electronic or remote procedures unless authorized by court order.

RI S0704

Mandates transparency in nursing home finances and would establish procedures for compliance.

RI S1014

Amends calculations of interest in civil actions a rate determined by average accepted auction price for last auction of 52 week U.S. treasury bills.

RI H5297

Sets standards and procedures to allow and implement conjugal visitation at state correctional facilities.

RI H5179

Amends calculations of interest in civil actions a rate determined by average accepted auction price for last auction of 52 week U.S. treasury bills.

RI H5722

Amends the administrative procedures act and provides that on the review of an agency decision by a court upon appeal, the court shall decide questions of law without deference to any previous determination or interpretation of the law by the agency.

RI H5557

Establishes prevailing standards and procedures for licensing speech-language pathologists and audiologists in Rhode Island.

Similar Bills

No similar bills found.