The bill seeks to amend the "Unfair Claims Settlement Practices Act" by defining various unfair practices by insurers, such as misrepresentation, failure to 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 or misrepresentation, honoring "direction to pay" for direct payment to chosen providers, and acknowledging and compensating for procedures required by original equipment or paint manufacturers. The bill includes insertions and deletions to the existing law, such as the requirement for insurers to respond to claims and perform appraisals within specified timelines.

Significant changes proposed by the bill include the forfeiture of the right to inspect a vehicle before repairs if the insurer's appraiser fails to inspect within the given time, and the prohibition of designating a vehicle as a total loss if the rebuild cost is less than 75% of its pre-accident value. The bill also requires insurers to provide itemized adjustments to vehicle value and inform owners about salvage title requirements with written consent. A new insertion requires all insurers to comply with § 27-9.1-4 for Rhode Island registered vehicles repaired in Rhode Island, regardless of where the policy was issued. It also ensures that insurer-chosen repair shop costs do not limit or discount reasonable repair costs if the insured or claimant selects their own shop. The act is set to 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