The bill amends Section 27-9.1-4 of the General Laws under the "Unfair Claims Settlement Practices Act" to enhance consumer protections in the insurance claims process. It introduces new legal language defining "unfair claims practices" and outlines specific actions that insurers must avoid, such as misrepresenting facts, failing to promptly acknowledge claims, and refusing to honor "directions to pay" from insured individuals. The provisions will take effect on January 1, 2025, and emphasize the necessity for fair treatment, timely communication, and proper investigation procedures by insurers.

Additionally, the bill establishes a "consumer accessible fair market value" for vehicle valuations and mandates that insurers comply with specific timelines for appraisals while informing vehicle owners of their rights when a vehicle is deemed a total loss. It prohibits insurers from limiting repair costs based on their preferred repair shops and requires them to extend rental vehicle coverage during claim delays. The bill also ensures that payments to public adjusters are made as directed by the insured, with a cap on the adjuster's fee at 10% of the settlement amount. Furthermore, it removes language that could restrict the rights of auto body repair facilities, thereby promoting a more equitable and transparent claims environment for consumers and repair shops.

Statutes affected:
5572: 27-9.1-4