The bill amends Section 27-9.1-4 of the General Laws under the "Unfair Claims Settlement Practices Act" by introducing a definition of "unfair claims practices" and outlining specific actions that insurers must avoid, such as misrepresenting facts, failing to promptly acknowledge claims, and refusing to honor "directions to pay" from insured individuals. The new provisions will take effect on January 1, 2025, and aim to enhance consumer protection by ensuring that insurers act in good faith and adhere to reasonable standards in their claims handling processes.

Additionally, the bill increases the threshold for requiring an appraisal from $2,500 to $5,000 for damaged vehicles and extends the timeframe for insurers to perform initial appraisals from three to four business days. It also stipulates that if an insurer fails to inspect a damaged vehicle within the specified timeframe, they forfeit their right to inspect prior to repairs, limiting negotiations to labor and parts pricing. Other provisions include notifying vehicle owners about salvage and reconstructed titles for total loss vehicles and ensuring fair adjustments to retail value without limiting repair costs based on preferred shop charges. Overall, these amendments are designed to improve consumer protections and ensure fair treatment in the claims process.

Statutes affected:
1015: 27-9.1-4