The bill amends various sections of the General Laws to enhance the rights of insured individuals and improve the claims process for insurance policies. It establishes a new cause of action for bad faith refusal to pay claims, allowing insured individuals to bring actions against insurers without needing to prove a breach of contract first. The bill also introduces a new standard form for fire insurance policies and revises the appraisal process, allowing either party to demand an appraisal if they cannot agree on the amount of loss. The process for selecting appraisers and an umpire is clearly outlined, and the appraisal award must be paid within thirty days unless there is a dispute regarding coverage.

Additionally, the bill enhances consumer protections under the "Unfair Claims Settlement Practices Act" by defining specific unfair claims practices, including the depreciation of labor costs when calculating actual cash value and replacement cost value, failing to account for consequential damage or applicable safety laws, and failing to notify claimants of their right to invoke the policy's appraisal provision when there is a disagreement on the claim amount. The act is set to take effect upon passage, aiming to provide clearer guidelines for insurance claim settlements and bolster consumer rights against unfair practices.

Statutes affected:
6370: 9-1-33, 27-5-3, 27-9.1-4