The bill amends Section 27-9.1-4 of the General Laws under the "Unfair Claims Settlement Practices Act" to clarify and expand the definitions of unfair claims practices by insurers. Key changes include raising the threshold for requiring an appraisal from $2,500 to $5,000 and extending the timeframe for insurers to perform initial appraisals from three to four business days. The bill also includes provisions regarding the designation of a vehicle as a total loss, specifying that a vehicle should not be deemed a total loss if the cost to repair it is less than 75% of its fair market value. Additionally, it mandates that insurers must notify vehicle owners of their obligations regarding salvage titles when a vehicle is declared a total loss.

The act also clarifies that the licensed appraiser must be unaffiliated with the repair motor vehicle and must obtain, in writing, the owner's consent and acknowledgment regarding the salvage title and reconstructed title from the department of motor vehicles. The act is set to take effect upon passage.

Statutes affected:
1015: 27-9.1-4