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 that if the insurance company and the insured cannot agree on the amount of loss, both parties can select their own disinterested Rhode Island licensed appraisers. The insurer's appraiser must inspect the damaged vehicle within four business days, or they forfeit their right to inspect prior to repairs. If the appraisers cannot resolve the dispute, they must submit their proposals, and if the difference exceeds fifteen percent, they will select an umpire to make a binding decision.

Additionally, the bill introduces a new provision that requires insurers to honor a "direction to pay" executed by an insured or claimant, indicating that the insured or claimant wishes to have the insurance company directly pay the insured's chosen appraiser and the umpire appraiser, if applicable. The bill takes effect upon passage.

Statutes affected:
3560: 27-10.4-1