The bill amends the "Unfair Claims Settlement Practices Act" by defining unfair practices by insurers, such as misrepresentation of facts, failure to promptly acknowledge claims, and not attempting fair settlements. It introduces new requirements for insurers, including not influencing the choice of rental car company or auto body shop through intimidation, honoring "direction to pay" for direct payments to chosen providers, and acknowledging necessary procedures recommended by manufacturers. The bill also sets timelines for insurers to respond to claims and perform appraisals, and outlines appraisal requirements.

Furthermore, the bill stipulates that insurers lose the right to inspect a vehicle before repairs if they fail to perform an initial or supplemental appraisal within the set time, and they cannot dispute repair methods without objective evidence. It prohibits designating a vehicle as a total loss if reconstruction costs are less than 75% of its fair market value and requires itemized, fair, and reasonable adjustments to the vehicle's value. Insurers must inform owners about salvage and reconstructed title requirements and obtain written consent if they do not retain salvage. The bill mandates compliance with these provisions for all insurers regarding Rhode Island registered vehicles repaired in the state and ensures that insurer-chosen repair shop costs do not limit compensation for repairs at a shop chosen by the insured or claimant. The bill is effective upon passage.

Statutes affected:
8252: 27-9.1-4