The bill amends Section 27-9.1-4 of the General Laws under the "Unfair Claims Settlement Practices Act" to define "unfair claims practices" and outline specific actions that insurers must avoid, such as misrepresenting facts, failing to promptly acknowledge claims, and refusing to honor "directions to pay" executed by insured individuals. The new legal language inserted into the law includes a definition of "unfair claims practices" and establishes that these provisions will take effect on January 1, 2025. The amendments aim to enhance consumer protection by ensuring that insurers act in good faith and adhere to reasonable standards in their claims handling processes, including timely communication and fair compensation for auto body repairs.

Additionally, the bill introduces protections for dental service providers by prohibiting insurers from refusing to honor "direction to pay" requests for dental services, allowing payments to be made directly to providers who meet certain criteria. It mandates that insurers conduct appraisals of damaged vehicles by licensed appraisers unaffiliated with repair facilities and within designated timeframes, with specific guidelines for settling claims. The bill also ensures that contracts cannot require payment exclusively through virtual credit cards and prohibits insurers from charging dental service providers fees for accessing payment data or processing payments. The act will take effect immediately upon passage.

Statutes affected:
6155: 27-9.1-4