The bill amends Section 27-10.4-1 of the General Laws regarding the motor vehicle appraisal process when disputes arise between an insured or claimant and an insurance company. It establishes that if the insured or claimant fails to agree on the amount of loss, they have the right to initiate an independent appraisal process. Each party is required to select their own disinterested Rhode Island licensed appraiser at their own expense, with the insurer's appraiser required to inspect the damaged vehicle within four business days. If the appraiser fails to do so, the insurer forfeits the right to inspect the vehicle prior to repairs, and negotiations will be limited to labor and parts pricing.

If the two appraisers cannot resolve the dispute, they must submit their best proposals to each other. If the proposals differ by 15% or less, the amount of the loss will be the midpoint between them. If the difference exceeds 15%, the appraisers will provide names of three disinterested Rhode Island licensed appraisers to each other. The appraisers will then endeavor to agree on the selection of one of the proposed candidates to act as umpire. If they cannot agree, the insured or claimant may choose an independent arbitration association to appoint an umpire. The umpire's decision will be binding, and if the final award exceeds the insurer's original offer by more than 25%, the insurer must reimburse all of the insured or claimant's appraisal costs. If the difference is less than 25%, the parties shall split the cost of the umpire.

The bill also clarifies the definition of a "disinterested Rhode Island licensed appraiser" and prohibits insurers from engaging in intimidation, coercion, threats, or misrepresentation of consumer rights during the appraisal process.

Statutes affected:
6054: 27-10.4-1
6054  as amended: 27-10.4-1