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. 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 must select their own disinterested Rhode Island licensed appraiser at their own expense, who 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 when the request is made. If the insurer's appraiser does not meet this timeline, they forfeit their right to inspect the vehicle prior to repairs, and negotiations will be limited to labor and parts pricing.

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, and they will endeavor to agree on one to act as umpire. If the parties cannot agree on a candidate, the insured or claimant may choose an independent association for arbitration to provide an umpire. The umpire shall render a decision within five days of appointment, and the agreement by the parties or the umpire's decision will be binding, with specific provisions for costs and compliance outlined.

Additionally, if the insured or claimant initiates this appraisal provision and 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 specifies that any appraiser not complying with applicable laws or regulations will have their appraisal deemed null and void. The insurer is prohibited from engaging in intimidation, coercion, threats, or misrepresentation of consumer rights during this process.

Statutes affected:
901: 27-10.4-1
901  SUB A: 27-10.4-1