The bill amends Section 27-9.1-4 of the General Laws under the "Unfair Claims Settlement Practices Act" to redefine unfair claims practices by insurers. Key changes include the adjustment of the threshold for designating a motor vehicle as a total loss from eighty percent (80%) to eighty-five percent (85%) of its fair market value. Insurers cannot classify a vehicle as a total loss if the cost to repair it is less than eighty-five percent (85%) of its pre-accident value. Additionally, consumers are granted the right to declare a vehicle a total loss when the repair costs meet the seventy-five percent (75%) threshold but are still below the eighty-five percent (85%) mark.

The bill aims to enhance consumer protection in the insurance industry by ensuring that claims are handled fairly and transparently. The changes will take effect upon passage of the bill.

Statutes affected:
3115: 27-9.1-4