What is the effective timing of an increased deductible if notice is given 15 business days prior to a policy renewal?

In the case of an increased deductible, proper notification is crucial to ensure that the insured understands the changes being made to their policy. In Rhode Island, when a material change such as an increased deductible is proposed, the insurer is required to provide at least 30 days' notice before the change takes effect. If the notice is given only 15 business days prior to a policy renewal, it does not meet the regulatory requirement of providing 30 days’ notice.

Therefore, the increase in the deductible would not take effect until the policyholder has received the full, required notice period. This means that the effective timing for the increased deductible occurs only after the stipulated 30 days, indicating that the change would not be applied until the next renewal period. The specific regulation in place protects policyholders from abrupt changes that could significantly impact their coverage and financial responsibilities.

Thus, the correct interpretation is that the increase in the deductible could only become effective after a complete 30 days’ notice has been provided, adhering to the legal requirements in place.