The bill amends Section 27-9.1-4 of the General Laws under the "Unfair Claims Settlement Practices Act," set to take effect on January 1, 2025. It establishes a clear definition of "unfair claims practices" by outlining specific actions that insurers must avoid, such as misrepresenting facts, failing to promptly acknowledge communications, and unreasonably delaying claims payments. The bill also includes provisions related to rental car services and repair benefits, ensuring that insurers must honor payment directions from insured individuals to their chosen service providers, provided those providers are licensed. New insertions in the bill enhance protections for auto body repairers by requiring insurers to use industry-recognized manuals for appraisals and to compensate repair shops based on documented charges from recognized software programs.

Additionally, the bill sets new standards for insurers regarding the designation of motor vehicles as total losses, prohibiting them from declaring a vehicle a total loss if the repair cost is less than eighty-five percent (85%) of its fair market value prior to damage. It mandates that fair market value be determined using a nationally recognized compilation of retail values and requires insurers to compensate auto body repairers for procedures recommended by original equipment manufacturers (OEM) or recognized industry programs. The bill also introduces requirements for licensed appraisers for vehicles with damage exceeding $2,500, mandates prompt scheduling of appraisals, and ensures that rental vehicle coverage is extended for delays caused by the insurer. Overall, the bill aims to enhance protections for vehicle owners and ensure fair treatment in the claims process.

Statutes affected:
902: 27-9.1-4