The bill amends the "Unfair Claims Settlement Practices Act" by specifying acts that are considered unfair when dealing with insurance claims. These acts include misrepresenting policy details, not responding promptly to communications, failing to provide fair settlements, and forcing insured parties to sue for rightful amounts. The bill introduces new requirements for insurers, such as honoring "direction to pay" requests, not altering appraisal manuals without agreement, compensating for documented charges based on industry software, and acknowledging procedures recommended by manufacturers. Additionally, it mandates appraisals by licensed appraisers for damages over $2,500 and sets timelines for appraisals.

Significant changes include the forfeiture of the right to inspect a vehicle by an insurer if they fail to do so within a set timeframe, limiting negotiations to labor and parts costs. The bill also prohibits insurers from declaring a vehicle a total loss if the repair costs are less than 75% of its fair market value and requires detailed adjustments to the vehicle's value. Insurers must comply with this section when settling claims on Rhode Island registered vehicles repaired in the state, regardless of where the policy was issued. The bill also addresses rental coverage extensions, negotiations with unlicensed adjusters, and payments for necessary sublet services. It ensures that contracts between repair facilities and insurers are not interfered with and that insured individuals are not limited in their choice of repair shop. The act will take effect on January 1, 2025.

Statutes affected:
3105  SUB A as amended: 27-9.1-4
3105  SUB A: 27-9.1-4
3105: 27-9.1-4