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S 3197Civil Procedure

Courts and Civil Procedure - Procedure Generally - Cause of Action

This bill allows signed settlement release forms to be sent electronically to insurance companies or other paying parties.

Held for study
Population
Affected
15
Email Legislator
Introduced Apr 3, 2026Committee Senate Judiciary

Plain-English Summary

This bill updates the rules for how legal settlements are processed and paid. Under current law, when a claim is settled, the responsible party (such as an insurance company) has 30 days to issue payment after receiving a signed release form. This bill explicitly allows the signed release form to be sent electronically to the paying party or their attorney. If payment is not made within the 30-day window, the payer can be held liable for additional punitive damages and interest.

For younger readers

When someone gets hurt or their property is damaged, an insurance company sometimes agrees to pay them money to fix it. This agreement is called a "settlement." Before the person gets paid, they have to sign a paper called a "release," which says they won't ask for more money later. This bill makes a new rule that says people can send this signed release paper over the computer, like through an email, instead of having to mail a physical piece of paper. The company then has 30 days to pay the money.

Who & Where It Applies

Impacted groups
Insurance companiesClaimantsAttorneysAdjusting companiesCivil court judges
Impacted communities
All

Constitutional & Fiscal Check

None Likely. This bill simply modernizes civil procedure by allowing the electronic transmission of settlement releases. It does not implicate free speech, search and seizure, or due process concerns, as it merely expands the acceptable formats for a voluntary legal agreement between private parties.

Estimated cost
None
Estimated revenue
None

Bill Analysis

Both viewpoints
For Progressives
  • Modernizes the legal process, making it faster and easier for low-income individuals without access to reliable mail or transportation to secure their settlement funds.
  • Holds powerful corporate entities, such as insurance companies, accountable by removing potential loopholes they might use to delay payments based on how a document was transmitted.
  • Reduces the financial strain on disadvantaged plaintiffs by ensuring they receive their much-needed settlement money sooner through an expedited, electronic submission process.
  • Does not address broader systemic inequalities within the civil justice system, such as the initial barriers low-income individuals face when trying to sue powerful corporations.
  • Relies on individuals having access to the internet and electronic devices, which may inadvertently disadvantage the poorest residents who lack reliable digital access.
  • The penalty for delayed payments relies on the claimant filing a separate lawsuit for punitive damages, which requires additional legal resources that marginalized individuals may not have.
For Conservatives
  • Increases efficiency in the legal and insurance sectors by embracing modern technology, reducing administrative burdens and paperwork costs for businesses.
  • Provides clear, unambiguous guidelines for how settlement releases can be transmitted, which helps businesses avoid unintentional compliance failures.
  • Streamlines the resolution of private disputes without expanding government bureaucracies or creating new taxpayer-funded assistance programs.
  • Maintains heavy-handed government mandates on private businesses by dictating strict 30-day payment timelines and imposing severe punitive damages for delays.
  • Could lead to increased litigation against insurance companies if electronic transmissions are lost in spam filters or poorly routed, triggering the punitive damage clause.
  • Expands the definition of acceptable legal documentation in a way that might increase the risk of electronic fraud or unauthorized digital signatures against corporations.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 4 additions

SECTION 1. Section 9-1-50 of the General Laws in Chapter 9-1 entitled "Causes of Action" is hereby amended to read as follows: 9-1-50. Settled claims not paid within thirty (30) days.

(a) Whenever any claim is settled, the insurance company, adjusting company, or any other person, firm, or corporation responsible for paying the settlement shall make payment within thirty

(30) days from the date the claimant or the claimant’s attorney sends the release. The signed release may be transmitted to the party responsible for paying the settlement or their attorney in electronic format. The signed release may be transmitted to the party responsible for paying the settlement or their attorney in electronic format. Failure to make payment within thirty (30) days shall raise a presumption that failure to do so was a willful and wanton disregard for the rights of the claimant. In addition to all other remedies, the payor shall be liable to the claimant in a separate cause of action for punitive damages and interest which shall be computed at the rate of twelve percent (12%) per annum from the date the cause of action giving rise to the settlement occurred until the judgment on the claim brought pursuant to this section is entered.

(b) Any claim brought under the provisions of this section shall be given a priority on the trial calendar.

SECTION 2. This act shall take effect upon passage.