The bill amends Section 27-10.4-1 of the General Laws concerning the motor vehicle appraisal process when disputes arise between insurance companies and insured individuals or claimants regarding the amount of loss. 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 difference exceeds fifteen percent, an umpire will be appointed to make a binding decision. The bill also stipulates that if the insured's final award exceeds the insurer's original offer by more than twenty-five percent, the insurer must cover the appraisal costs.

Additionally, the bill 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 act is set to take effect upon passage.

Statutes affected:
3365: 27-10.4-1