Legislation for Mattiello Constituent and Big Political Donor Comes Under Fire As Anti-Business
Sunday, June 24, 2018
A bill for a Cranston insurance man who is a close political supporter of Speaker Nick Mattiello and Representative Scott Slater is coming under fire from the specialty industry who warn that the legislation that passed the House earlier in the session and was jammed through the Senate on Saturday will have an adverse impact on everyone from homeowners within 5 miles of the coastline to those who own three-deckers.
The bill has just one supporter -- Paul Damiano, who has funneled $4,500 to Mattiello and $7,200 to Slater.
While Mattiello and Slater defend the bill as being pro-consumer, it allows for the payment of certain forms of insurance to be delayed in payment — up to 85 days.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLAST“This is reasonable policy that protects consumers. The insurance industry requires money to be immediately collected from their agents or they cancel policies. This bill provides for a more appropriate amount of time for the insurance companies to pay their agents. The bill gives consumers up to 45 days before a cancellation notice is issued for non-payment of their premium. The bill ensures that only after the 45-day period has passed may a cancellation notice be issued to the consumer, with a 10-day notice,” said Larry Berman spokesman for Mattiello on Saturday.
Slater said it should not matter Damiano lives or who he donates to. He said the legislation will help people and businesses.
Specialty Insurance Industry Says the Adoption of the Legislation Will Be Devastating
Tom DeCotis, CEO of Rhode Island firm DeCotis Specialty Insurance warns some Rhode Island agencies like his will be forced to close and that many insurance companies will simply stop writing insurance in Rhode Island.
“There are about a half-dozen firms like ours — and combined we employ about 100 to 150 people — this bill will crush our industry,” said DeCotis in a phone interview.
DeCotis also warns that the industry writes more than $150 million in business and is subject to a 4 percent tax. DeCotis warns that Rhode Island could lose the $6 million in revenue.
Other adverse impacts of the legislation are that certain types of insurance will be far harder to secure — coastal insurance for businesses and homeowners within five miles of the coast or for owners of three-deckers across the state, said DeCotis.
“The WSIA is unaware of any consumer complaints that would necessitate legislation that strips from producing agents and surplus lines brokers the ability to negotiate billing terms. For producing agents that are still unable to negotiate an adequate amount of time to pay premiums to surplus lines brokers, there exists a robust and well-regulated premium finance industry that stands ready to provide solutions,” wrote Keri Kish and John Meetz of WSIA to Senate President Dominick Ruggerio in opposition of the Slater Bill.
But others in the insurance industry were less kind in their criticism of the legislation. “This bill is bad for insurance buyers, insurance agents, and specialty brokers for many reasons…” wrote Bill Warburton of Hilb Group. He also pointed out that the legislation will be unenforceable by the Rhode Island Department of Regulation, conflicts with other statutes, and will likely to bankrupt small business brokers.
According to State House sources, one of the delays in the General Assembly’s adjournment was tied to a small group of bills including the Slater bill. It is unclear why Mattiello is pushing so hard for the legislation and his office denies that Mattiello does any legal work for Damiano.
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