The bill proposes amendments to the General Laws in Chapter 27-9.1, known as the "Unfair Claims Settlement Practices Act," to redefine its purpose and specify what constitutes an "unfair claims practice" by insurers in Rhode Island, excluding certain types of insurance such as workers’ compensation and boiler and machinery insurance. It clarifies that the chapter's purpose is to set standards for the investigation and disposition of insurance claims. The bill removes language that suggested there was no private cause of action for violations of the chapter, implying that such a cause of action may now exist.

The bill expands the definition of "unfair claims practices" to include 26 specific acts that range from misrepresenting policy facts to not conducting reasonable investigations before refusing to pay claims. It introduces new provisions, such as forfeiting the right to inspect a damaged vehicle if the insurer's appraiser does not inspect it within four business days of a request, and addresses issues like rental vehicle coverage, total loss designations, and payments for necessary sublet services. Importantly, the bill adds a new section allowing aggrieved individuals to bring a civil action after exhausting administrative procedures, potentially seeking injunctive relief and monetary damages. This change would provide individuals with a private cause of action under the act upon the bill's passage.