The bill seeks to amend the "Unfair Claims Settlement Practices Act" by defining various unfair practices by insurers, such as misrepresenting policy details, failing to promptly acknowledge claims, and not attempting fair settlements when liability is clear. It introduces new requirements for insurers, including honoring "direction to pay" for motor vehicle repairs, compensating auto body repairers for necessary procedures as per manufacturer recommendations, and using industry-recognized software fully for appraisals. The bill mandates compliance with specific time frames for appraisal inspections when damages exceed $2,500 and includes insertions and deletions to the existing law to enforce these provisions.

Additionally, the bill stipulates that insurers forfeit the right to inspect a damaged vehicle if they fail to do so within the set time frame, limiting negotiations to labor and parts costs. It prohibits insurers from declaring a vehicle a total loss if reconstruction costs are less than seventy-five percent of its fair market value and requires detailed adjustments to the vehicle's value. The bill also extends its jurisdiction to all insurers settling claims on Rhode Island registered vehicles repaired within the state, regardless of where the policy was issued. It clarifies the non-interference with contracts between repair facilities and insurers, and prohibits insurers from limiting or discounting repair costs based on their own network rates. The act is set to take effect immediately upon passage.

Statutes affected:
8252: 27-9.1-4