The bill amends Section 27-10.4-1 of the General Laws regarding the motor vehicle appraisal process when disputes arise between an insured individual or claimant and their insurance company. Key changes include the requirement that both parties select their own disinterested Rhode Island licensed appraisers at their own expense. The insurer's appraiser is required to inspect the damaged vehicle within four business days of the written demand, provided the vehicle is on the premises of the repair shop. If the insurer's appraiser fails to meet this timeline, they forfeit their right to inspect the vehicle prior to repairs, and negotiations will be limited to labor and parts pricing, unless objective evidence to the contrary is provided.

If the two appraisers are unable to 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 submit the names of three disinterested Rhode Island licensed appraisers to each other. The appraisers will then endeavor to agree on one of the proposed candidates to act as umpire. If they cannot agree, the insured or claimant will select 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 will split the cost of the umpire.

Additionally, the bill specifies that any appraiser who does not comply with the relevant provisions of Rhode Island law will have their appraisal deemed null and void. The bill also defines a "disinterested Rhode Island licensed appraiser" and clarifies that neither party may waive any rights under the applicable insurance policy that are not part of the appraisal process. The insurer is prohibited from engaging in any acts of intimidation, coercion, threat, or misrepresentation of consumer rights during this process.

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