The bill amends Section 27-10.4-1 of the General Laws regarding the motor vehicle appraisal process when disputes arise between insurance companies and insured individuals or claimants. It establishes a framework for independent appraisals, where both parties select their own disinterested Rhode Island licensed appraisers. If the appraisers cannot resolve the disagreement, they must submit proposals, and if the proposals differ significantly, an umpire will be appointed to make a binding decision. The bill also outlines the conditions under which appraisal costs are reimbursed and specifies that appraisers must comply with relevant Rhode Island laws.

Additionally, the bill introduces a new provision that requires insurers to directly pay the insured's chosen appraiser and the umpire appraiser, if applicable, upon receipt of a "direction to pay" executed by an insured or claimant. It prohibits insurers from refusing to honor such a direction. This act is set to take effect upon passage.

Statutes affected:
7864: 27-10.4-1