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 inspect the vehicle within this timeframe, the insurer forfeits its right to inspect the vehicle prior to repairs, and negotiations will be limited to labor and parts pricing, barring disputes over the existence of damage or repair methods unless objective evidence 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 loss will be the midpoint between them. If the proposals differ by more than 15%, the appraisers will submit the names of three disinterested Rhode Island licensed appraisers to each other to select an umpire. If an agreement cannot be reached on an umpire, the insured or claimant may choose an independent arbitration association to provide one. The umpire must render a decision within five days of appointment, and the decision will be binding on both parties, except for supplemental allowances for hidden damage or other reasonable charges related to the loss that have not been paid.

Additionally, if the insured or claimant initiates the appraisal process and the final award exceeds the insurer's original offer by more than 25%, the insurer must reimburse all appraisal costs incurred by the insured or claimant. If the difference is less than 25%, the parties will split the cost of the umpire. The bill also stipulates that any appraiser not complying with relevant laws will have their appraisal deemed null and void. A "disinterested Rhode Island licensed appraiser" is defined as one who has not performed an appraisal or received compensation from either party in the previous 30 days. The insurer is prohibited from engaging in intimidation, coercion, or misrepresentation of consumer rights during this process. The act will take effect upon passage.

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