The bill proposes amendments to the "Unfair Claims Settlement Practices Act," specifically addressing the conduct of insurers in handling claims related to auto body repairs and rental car charges. It introduces new requirements for insurers, such as promptly notifying rental car companies in writing of any challenges to charges and compensating auto body repairers for necessary procedures as identified by manufacturers. The bill also revises the criteria for designating a vehicle as a total loss, setting the threshold at seventy-five percent of the vehicle's fair market value before the accident. Additionally, it mandates that insurers provide written information to vehicle owners about salvage and reconstructed titles if applicable.

Furthermore, the bill establishes a new chapter on the "Motor Vehicle Appraisal Provision," detailing the independent appraisal process for disputes over the loss amount between insurers and insured parties or claimants. It requires each party to select a licensed Rhode Island appraiser, and the insurer's appraiser must inspect the vehicle within three business days of a written demand. If the insurer fails to perform the initial or supplemental appraisal within the specified time frame, they forfeit the right to inspect the vehicle before repairs. The bill also includes provisions to prevent insurers from intimidating or coercing consumers during the appraisal process. The legislation is set to take effect upon passage.

Statutes affected:
5855  SUB A: 27-9.1-4, 27-10.1-6
5855: 27-10.1-6