What is required of all insurers writing basic property insurance in Rhode Island?

In Rhode Island, all insurers writing basic property insurance are required to have membership in the Rhode Island Joint Reinsurance Association, making it a mandatory requirement. This regulation is designed to ensure that insurers participate in a shared risk pool, which helps to stabilize the market and provide coverage for property insurance, particularly in high-risk areas.

Membership in this association allows insurers to spread their risk and cap their losses, particularly in cases where natural disasters or significant claims may impact them financially. The mandatory nature of this membership ensures that all insurers contribute to the collective to aid in covering claims and maintaining property insurance availability in the state.

This requirement helps enhance the overall insurance environment in Rhode Island by fostering cooperation among insurers and supporting the broader goal of ensuring that property insurance remains accessible and affordable for consumers.