The bill proposes amendments to the General Laws in Chapter 27-9.1, known as the "Unfair Claims Settlement Practices Act," which aims to set standards for the investigation and disposition of insurance claims in Rhode Island, with certain exclusions. It redefines the purpose of the chapter and specifies what constitutes an "unfair claims practice" by an insurer, listing 26 specific acts that would be considered violations. Notably, the bill removes language that previously suggested there was no private cause of action for violations of the chapter.

Additionally, the bill introduces new provisions regarding the handling of insurance claims, particularly for auto body repairs and total loss designations. It sets a four-business-day deadline for insurers to inspect damaged vehicles and prohibits them from declaring a vehicle a total loss if repair costs are less than 75% of its fair market value, subject to certain conditions. The bill also allows individuals to bring a civil action against insurers for unfair claims practices after exhausting administrative procedures, with the possibility of monetary damages and injunctive relief being awarded by the court. The bill would be effective upon passage, creating a private cause of action for insured individuals under the act.