The bill amends various sections of the General Laws to enhance consumer protections in the insurance claims process, particularly regarding bad faith actions against insurers and the appraisal process for fire insurance policies. Key insertions include provisions that allow insured individuals to bring legal action against insurers for bad faith refusal to pay claims without needing to prove a breach of contract. Additionally, the bill introduces a standard form for fire insurance policies, clarifying essential components such as coverage details and premium amounts. It also streamlines the appraisal process by allowing either party to demand an appraisal and ensuring that disputes can be resolved efficiently, with the insurance company required to issue payment within thirty days of the appraisal award.

Moreover, the bill addresses the calculation of auto body repair costs, prohibiting insurers from depreciating labor costs and ensuring that they account for consequential damages. Insurers are mandated to notify claimants of their appraisal rights and must adhere to industry standards when compensating repair shops. The legislation aims to improve transparency and fairness in the insurance claims process, reducing the timeframe for claims resolution and establishing clearer standards for insurer conduct. Overall, these amendments are designed to protect consumers from unfair practices and enhance the enforceability of insurance claims in the state.

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