Editorial: Governor sides with R.I. motorists - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Newswires
Newswires RSS Get our newsletter
Order Prints
July 10, 2019 Newswires
Share
Share
Post
Email

Editorial: Governor sides with R.I. motorists

Providence Journal (RI)

Gov. Gina Raimondo did Rhode Island motorists a big favor this week by vetoing an outrageous giveaway to a powerful State House interest. It was the first time this year the governor exercised her veto power.

Ms. Raimondo vetoed a measure sought by the auto-body industry and bitterly opposed by insurers, who warned Rhode Island's ridiculously high automobile insurance rates would soar even higher if it became law.

The auto-body lobbyists wanted to make it possible to slap insurers with triple damages if they declared a vehicle a "total loss" instead of paying for repairs.

In her veto message, the governor explained how extreme such a measure would be.

"If enacted, Rhode Island would be the first state in the nation where private individuals can sue their insurers for up to three times the amount of their damages if they feel their vehicle has been unfairly totaled," she said.

The governor noted that the state Department of Business Regulation already has the power to investigate and penalize the insurance industry "in cases where DBR can establish a pattern and practice of violations of the law.

"Indeed, DBR has aggressively exercised this authority to protect Rhode Island consumers -- ordering fines and restitution of more than $1.1 million to date in cases of confirmed violations by insurance companies," the governor said.

"Adding a private cause of action providing treble damages and attorneys' fees would be unprecedented nationally, could trigger a significant volume of potentially frivolous litigation, and will ultimately drive insurance premiums -- already among the highest in the nation -- even higher for Rhode Island drivers," she explained.

It could also "force some insurers to exit the Rhode Island market, making our car insurance market even less competitive and more expensive."

Rhode Island already has some of the highest insurance rates in the nation, with some of the nation's biggest hikes in recent years, according to a recent Gatehouse Media investigation. Rhode Island's average rate leapt from $1,368 in 2011 to $2,110 last year, a whopping 54% increase.

By comparison, the average annual rate in Massachusetts was only $1,277.

Journal Political Writer Katherine Gregg pointed out in a July 9 news article ("Raimondo vetoes bill favored by body shops") that the industry is one of the most active political players in Rhode Island.

People in the industry made at least $65,550 in political donations during the first three months of this year. That included at least $14,900 to House Speaker Nicholas Mattiello and $11,750 to Senate President Dominick Ruggerio.

"A single family, the Petrarca family, which includes former state Rep. Peter Petrarca and his sister and law partner, Jina Petrarca, contributed $22,550 to Rhode Island politicos during the first quarter. It was Jina Petrarca who again this year represented the family's Providence Auto Body at the legislative hearings," Ms. Gregg reported.

Some 22 auto-body bills that the legislature has passed since 2003 have turned Rhode Island into one of the most expensive states for auto insurance, Frank O'Brien, vice president of the American Property Casualty Insurance Association, said.

It is too bad the governor betrayed the public by signing into law "evergreen contract" legislation earlier this year, something that municipal leaders warned will weaken the public in negotiations and drive up their property taxes.

But she did the right thing in vetoing this brazen attempt to benefit the auto-body industry at the expense of the public.

___

(c)2019 The Providence Journal (Providence, R.I.)

Visit The Providence Journal (Providence, R.I.) at www.projo.com

Distributed by Tribune Content Agency, LLC.

Older

OpenText Announces Customer of the Year Award Winners

Newer

EDITORIAL: Insurance commissioner’s campaign cash scandal raises troubling questions

Advisor News

  • The 6X Formula for leveraging content marketing with AI
  • When a home becomes difficult to insure, the plan changes
  • The inheritance gap: Helping clients plan for money that hasn’t arrived
  • After the midterms: Addressing your clients’ tax concerns
  • Berkeley arts tax heads toward passage while public bank measure looks likely to fail
More Advisor News

Annuity News

  • Athene CEO criticizes offshore reinsurance, risk-taking by competitors
  • DOL, trade groups, state AGs file briefs supporting Alcoa in PRT lawsuit
  • John Hancock launches new fixed indexed annuity suite
  • Annuities to play a larger role in workplace retirement plans
  • FHLBank Pittsburgh Announces Results in 2026 Board Election
More Annuity News

Health/Employee Benefits News

  • CVS is planning a huge corporate breakup after drug price criticism. Did Louisiana play a role?
  • Health insurance premiums increase as Affordable Care Act open enrollment underway in Wisconsin
  • CVS is planning a huge corporate breakup after drug price criticism. Did Louisiana play a role?
  • A practical benefits strategy for cost-conscious employers
  • Uninsured? Here's where to look for free or low-cost vaccines
More Health/Employee Benefits News

Life Insurance News

  • AM Best Affirms Credit Ratings of Fubon Insurance Vietnam Co., Ltd.
  • Three lawsuits put life insurers’ cost-of-insurance practices under scrutiny
  • Military Briefs: November 12-18
  • Security Benefit Series B Preferred Stock Dividend Rate Resets to 10.286%
  • FHLBank Pittsburgh Announces Results in 2026 Board Election
More Life Insurance News

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Press Releases

  • Insurvoice Lets Independent Insurance Agency Owners Analyze Every Customer Call in ChatGPT or Claude
  • Spectrum Weather & Specialty Insurance Celebrates 15 Years and Welcomes the Next Generation
  • Royal Neighbors of America® Increases Service Capacity
  • Benefits Studio Launches to Fill the Missing Middle of Benefits Navigation at $49/mo
  • Lauren Sinnott Named to Ragan’s Top Women in Marketing Awards, Class of 2026 
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.