The bill modifies the General Laws in Chapter 27-9.1, known as the "Unfair Claims Settlement Practices Act," by defining and expanding the list of actions that constitute unfair claims practices by insurers. New insertions to the list include misleading claimants about the statute of limitations, failing to respond to claims within 30 days without agreement for an extension, and using intimidation or misrepresentation to influence the choice of a rental car company. The bill also addresses appraisal procedures for motor vehicle damage, mandates for insurers to acknowledge and compensate for necessary procedures as identified by original equipment manufacturers or paint manufacturers, and sets time frames for appraisals and supplemental appraisals, including consequences for insurers who do not comply.

Furthermore, the bill introduces provisions regarding the settlement of claims involving public adjusters. It deems it an unfair practice for insurers to disregard a "direction to pay" letter, which instructs the insurer to issue a check for the public adjuster's fee, capped at 10% of the total settlement, and to issue a separate check for the balance to the appropriate party. The bill also prohibits insurers from issuing payment without deducting the public adjuster's fee if a conforming "direction to pay" letter is in place. It clarifies that certain subsections do not affect contracts between auto body repair facilities and insurers, and insurers cannot limit or discount repair costs based on their preferred shop if the insured chooses a different one. The act becomes effective upon passage.

Statutes affected:
2682: 27-9.1-4