The bill amends Section 27-9.1-4 of the General Laws under the "Unfair Claims Settlement Practices Act" to enhance consumer protections against unfair claims practices by insurers. It raises the threshold for requiring an appraisal of motor vehicle damages from $2,500 to $5,000 and mandates that insurers perform an initial appraisal within four business days of a request from an auto body repair shop. The bill also specifies that the licensed appraiser must be unaffiliated with the repair motor vehicle and must not perform an appraisal based solely on pictures of the damaged vehicle.

Additionally, the bill emphasizes the use of fair market values as recognized by the automotive or insurance industry when determining vehicle values. It includes definitions of unfair claims practices, such as misrepresentation of policy provisions, unreasonable delays in claims processing, and failure to provide necessary forms. The bill outlines specific obligations for insurers regarding payment directions from insured individuals and the handling of claims related to auto body repairs. This act is set to take effect upon passage.

Statutes affected:
5571: 27-9.1-4