| 24 | 24 | | 27-9.1-4. “Unfair claims practices” defined. 3 |
|---|
| 25 | 25 | | (a) Any of the following acts by an insurer, if committed in violation of § 27-9.1-3, 4 |
|---|
| 26 | 26 | | constitutes an unfair claims practice: 5 |
|---|
| 27 | 27 | | (1) Misrepresenting to claimants and insured relevant facts or policy provisions relating to 6 |
|---|
| 28 | 28 | | coverage at issue; 7 |
|---|
| 29 | 29 | | (2) Failing to acknowledge and act with reasonable promptness upon pertinent 8 |
|---|
| 30 | 30 | | communications with respect to claims arising under its policies; 9 |
|---|
| 31 | 31 | | (3) Failing to adopt and implement reasonable standards for the prompt investigation and 10 |
|---|
| 32 | 32 | | settlement of claims arising under its policies; 11 |
|---|
| 33 | 33 | | (4) Not attempting in good faith to effectuate prompt, fair, and equitable settlement of 12 |
|---|
| 34 | 34 | | claims submitted in which liability has become reasonably clear; 13 |
|---|
| 35 | 35 | | (5) Compelling insured, beneficiaries, or claimants to institute suits to recover amounts due 14 |
|---|
| 36 | 36 | | under its policies by offering substantially less than the amounts ultimately recovered in suits 15 |
|---|
| 37 | 37 | | brought by them; 16 |
|---|
| 38 | 38 | | (6) Refusing to pay claims without conducting a reasonable investigation; 17 |
|---|
| 39 | 39 | | (7) Failing to affirm or deny coverage of claims within a reasonable time after having 18 |
|---|
| 40 | 40 | | completed its investigation related to the claim or claims; 19 |
|---|
| 41 | 41 | | |
|---|
| 42 | 42 | | |
|---|
| 44 | 44 | | (8) Attempting to settle or settling claims for less than the amount that a reasonable person 1 |
|---|
| 45 | 45 | | would believe the insured or beneficiary was entitled by reference to written or printed advertising 2 |
|---|
| 46 | 46 | | material accompanying or made part of an application; 3 |
|---|
| 47 | 47 | | (9) Attempting to settle or settling claims on the basis of an application that was materially 4 |
|---|
| 48 | 48 | | altered without notice to, or knowledge or consent of, the insured; 5 |
|---|
| 49 | 49 | | (10) Making claims payments to an insured or beneficiary without indicating the coverage 6 |
|---|
| 50 | 50 | | under which each payment is being made; 7 |
|---|
| 51 | 51 | | (11) Unreasonably delaying the investigation or payment of claims by requiring both a 8 |
|---|
| 52 | 52 | | formal proof of loss form and subsequent verification that would result in duplication of 9 |
|---|
| 53 | 53 | | information and verification appearing in the formal proof of loss form; 10 |
|---|
| 54 | 54 | | (12) Failing in the case of claims denials or offers of compromise settlement to promptly 11 |
|---|
| 55 | 55 | | provide a reasonable and accurate explanation of the basis of those actions; 12 |
|---|
| 56 | 56 | | (13) Failing to provide forms necessary to present claims within ten (10) calendar days of 13 |
|---|
| 57 | 57 | | a request with reasonable explanations regarding their use; 14 |
|---|
| 58 | 58 | | (14) Failing to adopt and implement reasonable standards to assure that the repairs of a 15 |
|---|
| 59 | 59 | | repairer owned by or required to be used by the insurer are performed in a workmanlike manner; 16 |
|---|
| 60 | 60 | | (15) Misleading a claimant as to the applicable statute of limitations; 17 |
|---|
| 61 | 61 | | (16) Failing to respond to a claim within thirty (30) days, unless the insured shall agree to 18 |
|---|
| 62 | 62 | | a longer period; 19 |
|---|
| 63 | 63 | | (17) Engaging in any act or practice of intimidation, coercion, threat, or misrepresentation 20 |
|---|
| 64 | 64 | | of consumers rights, for or against any insured person, claimant, or entity to use a particular rental 21 |
|---|
| 65 | 65 | | car company for motor vehicle replacement services or products; provided, however, nothing shall 22 |
|---|
| 66 | 66 | | prohibit any insurance company, agent, or adjuster from providing to such insured person, claimant, 23 |
|---|
| 67 | 67 | | or entity the names of a rental car company with which arrangements have been made with respect 24 |
|---|
| 68 | 68 | | to motor vehicle replacement services; provided, that the rental car company is licensed pursuant 25 |
|---|
| 69 | 69 | | to § 31-5-33; 26 |
|---|
| 70 | 70 | | (18) Refusing to honor a “direction to pay” executed by an insured, claimant, indicating 27 |
|---|
| 71 | 71 | | that the insured or claimant wishes to have the insurance company directly pay his or her motor 28 |
|---|
| 72 | 72 | | vehicle replacement vehicle rental benefit to the rental car company of the consumer’s choice; 29 |
|---|
| 73 | 73 | | provided, that the rental car company is licensed pursuant to § 31-5-33. Nothing in this section shall 30 |
|---|
| 74 | 74 | | be construed to prevent the insurance company’s ability to question or challenge the amount 31 |
|---|
| 75 | 75 | | charged, in accordance with its policy provisions, and the requirements of the department of 32 |
|---|
| 76 | 76 | | business regulation; provided that, the insurance company promptly notifies the rental car company 33 |
|---|
| 77 | 77 | | in writing of the reason. The written notification shall be made at or before the time that the 34 |
|---|
| 78 | 78 | | |
|---|
| 79 | 79 | | |
|---|
| 86 | | - | (21) Refusing to compensate an auto body shop for its documented charges as identified, 6 |
|---|
| 87 | | - | through and based on, the most current version of automotive industry-recognized software 7 |
|---|
| 88 | | - | programs or systems for paint, body, and refinishing materials in auto body repair claims, utilized 8 |
|---|
| 89 | | - | in auto body repair, including, but not limited to, programs such as Mitchell’s RMC, PMC Logic, 9 |
|---|
| 90 | | - | Paint, Micromix, or a other paint manufacturer’s programs. An insurer shall not discount 10 |
|---|
| 91 | | - | documented charges by failing to use a system in its entirety, including an automotive industry 11 |
|---|
| 92 | | - | standard markup; 12 |
|---|
| 86 | + | (21) Any insurer, or appraiser, refusing Refusing to compensate an auto body shop for its 6 |
|---|
| 87 | + | documented charges as identified, through and based on, the most current version of automotive 7 |
|---|
| 88 | + | industry-recognized software programs or systems for paint, body, and refinishing materials 8 |
|---|
| 89 | + | utilized in auto body repair, in auto body repair claims, including, but not limited to, programs such 9 |
|---|
| 90 | + | as Mitchell’s RMC, PMC Logic, Paint, Micromix, or other recognized a paint manufacturer’s 10 |
|---|
| 91 | + | programs. An insurer shall not discount documented charges by failing to use a system in its 11 |
|---|
| 92 | + | entirety, including an automotive industry standard markup; 12 |
|---|
| 118 | 118 | | limitations set forth in this subsection may be extended by mutual agreement between the auto body 1 |
|---|
| 119 | 119 | | repair shop and the insurer; 2 |
|---|
| 120 | 120 | | (27) Refusing to extend the rental vehicle coverage requirements of an insured or claimant 3 |
|---|
| 121 | 121 | | proportionally to claim delays caused by the insurer. 4 |
|---|
| 122 | 122 | | (25)(28) Designating a motor vehicle a total loss if the cost to rebuild or reconstruct the 5 |
|---|
| 123 | 123 | | motor vehicle to its pre-accident condition is less than seventy-five percent (75%) of the “fair 6 |
|---|
| 124 | 124 | | market value” of the motor vehicle immediately preceding the time it was damaged: 7 |
|---|
| 125 | 125 | | (i) For the purposes of this subdivision, “fair market value” means the retail value of a 8 |
|---|
| 126 | 126 | | motor vehicle as set forth in a current edition of a nationally recognized compilation of retail values 9 |
|---|
| 127 | 127 | | commonly used by the automotive industry to establish values of motor vehicles; 10 |
|---|
| 128 | 128 | | (ii) Nothing herein shall be construed to require a vehicle be deemed a total loss if the total 11 |
|---|
| 129 | 129 | | cost to rebuild or reconstruct the motor vehicle to its pre-accident condition is greater than seventy-12 |
|---|
| 130 | 130 | | five percent (75%) of the fair market value of the motor vehicle immediately preceding the time it 13 |
|---|
| 131 | 131 | | was damaged; 14 |
|---|
| 132 | 132 | | (iii) Nothing herein shall prohibit an insurance company from agreeing to deem a vehicle 15 |
|---|
| 133 | 133 | | a total loss at the vehicle owner’s request and with the vehicle owner’s express written authorization 16 |
|---|
| 134 | 134 | | if the cost to rebuild or reconstruct the motor vehicle to its pre-accident condition is less than 17 |
|---|
| 135 | 135 | | seventy-five percent (75%) of the “fair market value” of the motor vehicle immediately preceding 18 |
|---|
| 136 | 136 | | the time it was damaged; 19 |
|---|
| 137 | 137 | | (iv) If condition adjustments are made to the retail value of a motor vehicle designated a 20 |
|---|
| 138 | 138 | | total loss, all such adjustments must be in accordance with the standards set forth in the current 21 |
|---|
| 139 | 139 | | edition of a nationally recognized compilation of retail values, commonly used by the automotive 22 |
|---|
| 140 | 140 | | industry, used by the insurer to determine the retail value of the vehicle; and all such adjustments, 23 |
|---|
| 141 | 141 | | including prior damage deductions, must be itemized, fair, and reasonable; and 24 |
|---|
| 142 | 142 | | (v) When a vehicle is deemed a total loss, if the insurer is not retaining the salvage, the 25 |
|---|
| 143 | 143 | | insurer must notify the owner of the vehicle in writing of the requirements of obtaining both a 26 |
|---|
| 144 | 144 | | salvage title and a reconstructed title from the department of motor vehicles pursuant to chapter 1 27 |
|---|
| 145 | 145 | | of title 31, and must obtain, in writing, the owner’s consent and acknowledgement that the insurer 28 |
|---|
| 146 | 146 | | is not retaining the salvage and include a statement of the owner’s obligation and potential costs to 29 |
|---|
| 147 | 147 | | dispose of or otherwise retain the salvage; 30 |
|---|
| 148 | 148 | | (26)(29) Negotiating, or effecting the settlement of, a claim for loss or damage covered by 31 |
|---|
| 149 | 149 | | an insurance contract with an unlicensed public adjuster acting on behalf of an insured. Nothing 32 |
|---|
| 150 | 150 | | contained in this section shall be construed to preclude an insurer from dealing with any individual 33 |
|---|
| 151 | 151 | | or entity that is not required to be licensed under chapter 10 of title 27; 34 |
|---|
| 152 | 152 | | |
|---|
| 153 | 153 | | |
|---|
| 155 | 155 | | (27)(30) Refusing to pay an auto body repair shop for documented necessary sublet 1 |
|---|
| 156 | 156 | | services paid out to vendors or incurred by the auto body repair shop, for specialty or unique 2 |
|---|
| 157 | 157 | | services performed in the overall repair process, including costs and labor incurred to research, 3 |
|---|
| 158 | 158 | | coordinate, administrate, or facilitate the necessary sublet service, and an automotive industry 4 |
|---|
| 159 | 159 | | standard markup. Examples of sublet services include, but are not limited to, towing, transportation, 5 |
|---|
| 160 | 160 | | suspension, alignments, electronic calibrations, diagnostic work, mechanical work, and paid 6 |
|---|
| 161 | 161 | | charges to release a vehicle. 7 |
|---|
| 162 | 162 | | (b)(1) Nothing contained in subsections (a)(19), (a)(20), and (a)(21) of this section shall be 8 |
|---|
| 163 | 163 | | construed to interfere with an auto body repair facility’s contract with an insurance company. 9 |
|---|
| 164 | 164 | | (2) If an insurance company and auto body repair facility have contracted under a direct 10 |
|---|
| 165 | 165 | | repair program or any similar program thereto, the provisions of subsections (a)(19), (a)(20), and 11 |
|---|
| 166 | 166 | | (a)(21) of this section shall not apply. 12 |
|---|
| 167 | 167 | | (3) If the insured or claimant elects to have the vehicle repaired at a shop of his or her 13 |
|---|
| 168 | 168 | | choice, the insurer shall not limit or discount the reasonable repair costs based upon the charges 14 |
|---|
| 169 | 169 | | that would have been incurred had the vehicle been repaired by the insurer’s chosen shop(s). 15 |
|---|
| 170 | | - | SECTION 2. Section 27-10.1-6 of the General Laws in Chapter 27-10.1 entitled "Motor 16 |
|---|
| 171 | | - | Vehicle Damage Appraisers" is hereby amended to read as follows: 17 |
|---|
| 172 | | - | 27-10.1-6. Conduct of motor vehicle damage appraisers. 18 |
|---|
| 173 | | - | (a) Each appraiser, while engaged in appraisal duties, shall carry the license issued to that 19 |
|---|
| 174 | | - | appraiser by the department of business regulation and shall display it, upon request, to an owner 20 |
|---|
| 175 | | - | whose vehicle is being inspected, to the auto body shop representative involved, or to any 21 |
|---|
| 176 | | - | authorized representative of the department of business regulation. 22 |
|---|
| 177 | | - | (b) An insurer's assigned appraiser, or representative, shall promptly schedule an 23 |
|---|
| 178 | | - | appointment for appraisal of a damaged vehicle with the auto body repair shop, at an agreed upon 24 |
|---|
| 179 | | - | date and time, between normal business hours. 25 |
|---|
| 180 | | - | (b)(c) The appraiser shall leave a legible copy of his or her appraisal with the auto body 26 |
|---|
| 181 | | - | shop selected to make the repairs, which appraisal shall contain the name of the insurance company 27 |
|---|
| 182 | | - | ordering it, if any, the insurance file number, the number of the appraiser’s license, and the proper 28 |
|---|
| 183 | | - | identification number of the vehicle being inspected, and notice in boldface type, reading as 29 |
|---|
| 184 | | - | follows: 30 |
|---|
| 185 | | - | “PURSUANT TO RHODE ISLAND LAW, THE CONSUMER HAS THE RIGHT TO 31 |
|---|
| 186 | | - | CHOOSE THE REPAIR FACILITY TO COMPLET E REPAIRS TO A MOTOR VEHICLE; AND 32 |
|---|
| 187 | | - | AN INSURANCE COMPANY MAY NOT INTERFERE WITH THE CONSUMER’S CHOICE 33 |
|---|
| 188 | | - | OF REPAIRER.” All damage unrelated to the incident or accident that occasioned the appraisal of 34 |
|---|
| 170 | + | 27-9.1-6. Cease and desist and penalty orders. 16 |
|---|
| 171 | + | If, after a hearing, the director finds an insurer has engaged in an unfair claims practice, the 17 |
|---|
| 172 | + | director shall reduce the findings to writing and shall issue and cause to be served upon the insurer 18 |
|---|
| 173 | + | charged with the violation a copy of the findings and an order requiring the insurer to cease and 19 |
|---|
| 174 | + | desist from engaging in the act or practice, payment of a monetary penalty of one thousand dollars 20 |
|---|
| 175 | + | ($1,000) or treble damages, whichever is greater, for each violation, to the consumer, or consumers, 21 |
|---|
| 176 | + | who filed the complaint which resulted in a finding of a violation, and the director may, at the 22 |
|---|
| 177 | + | director’s discretion, order: 23 |
|---|
| 178 | + | (1) Payment of a monetary penalty of not more than ten thousand dollars ($10,000) for 24 |
|---|
| 179 | + | each violation, but not to exceed an aggregate penalty of one hundred thousand dollars ($100,000), 25 |
|---|
| 180 | + | unless the violation was committed flagrantly and in conscious disregard of this chapter, in which 26 |
|---|
| 181 | + | case the penalty shall not be more than twenty-five thousand dollars ($25,000) for each violation, 27 |
|---|
| 182 | + | but not to exceed an aggregate penalty of two hundred fifty thousand dollars ($250,000) pursuant 28 |
|---|
| 183 | + | to any hearing; and/or 29 |
|---|
| 184 | + | (2) Suspension or revocation of the insurer’s license if the insurer knew or reasonably 30 |
|---|
| 185 | + | should have known it was in violation of this chapter. 31 |
|---|
| 186 | + | 27-9.1-7. Penalty for violation of cease and desist orders. 32 |
|---|
| 187 | + | Any insurer which violates a cease and desist order of the director and, while the order is 33 |
|---|
| 188 | + | in effect, may, after notice and hearing and upon order of the director, be subject, at the discretion 34 |
|---|
| 191 | | - | LC002002/SUB A - Page 6 of 8 |
|---|
| 192 | | - | the vehicle, or old damage, shall be clearly indicated in the appraisal. 1 |
|---|
| 193 | | - | (c)(d) The appraiser shall not obtain a competitive estimate from another auto body shop 2 |
|---|
| 194 | | - | unless the owner of that other shop, or his or her authorized agent, has inspected the vehicle. No 3 |
|---|
| 195 | | - | competitive estimate shall be obtained by the use of photographs, telephone calls, or in any manner 4 |
|---|
| 196 | | - | other than a personal inspection. 5 |
|---|
| 197 | | - | (d)(e) No appraiser shall request that repairs be made in a specified auto body shop. 6 |
|---|
| 198 | | - | (e)(f) Every appraiser shall re-inspect damaged vehicles when supplementary allowances 7 |
|---|
| 199 | | - | are requested by the auto body shops. 8 |
|---|
| 200 | | - | (f)(g) No appraiser shall receive directly or indirectly any gratuity or other consideration 9 |
|---|
| 201 | | - | in connection with his or her appraisal services from any person except his or her employer, or, if 10 |
|---|
| 202 | | - | self-employed, his or her customers. 11 |
|---|
| 203 | | - | (g)(h) No appraiser shall traffic in automobile salvage if it is obtained in any way as a result 12 |
|---|
| 204 | | - | of appraisal services rendered by the appraiser. 13 |
|---|
| 205 | | - | (h)(i) No appraiser shall obtain an estimate from an unlicensed automobile body repair 14 |
|---|
| 206 | | - | shop nor shall any appraiser agree on a price for repairing a damaged motor vehicle with an 15 |
|---|
| 207 | | - | unlicensed automobile body repair shop. Nothing contained in this section shall be construed to 16 |
|---|
| 208 | | - | preclude an appraiser from dealing with any entity not subject to the licensing provisions of § 5-17 |
|---|
| 209 | | - | 38-4. 18 |
|---|
| 210 | | - | SECTION 3. Title 27 of the General Laws entitled "INSURANCE" is hereby amended by 19 |
|---|
| 211 | | - | adding thereto the following chapter: 20 |
|---|
| 212 | | - | CHAPTER 10.4 21 |
|---|
| 213 | | - | MOTOR VEHICLE APPRAISAL PROVISION 22 |
|---|
| 214 | | - | 27-10.4-1. Motor vehicle appraisal provision. 23 |
|---|
| 215 | | - | (a) When the insurance company and the insured or claimants fail to agree on the amount 24 |
|---|
| 216 | | - | of a loss, either has the right to exercise the independent appraisal process outlined in this section. 25 |
|---|
| 217 | | - | Agreements by the parties shall be binding. Each shall select a disinterested Rhode Island licensed 26 |
|---|
| 218 | | - | appraiser. The insurer's chosen appraiser shall inspect the damaged motor vehicle within three (3) 27 |
|---|
| 219 | | - | business days after the written demand is received; provided, the damaged motor vehicle is on the 28 |
|---|
| 220 | | - | premises of the repair shop when the request is made. If the insurer's appraiser fails to inspect the 29 |
|---|
| 221 | | - | damaged motor vehicle within the three (3) business days the insurer shall forfeit its right to inspect 30 |
|---|
| 222 | | - | the damaged vehicle prior to repairs, and negotiations shall be limited to labor and the price of parts 31 |
|---|
| 223 | | - | and shall not, unless objective evidence to the contrary is provided by the insurer, involve disputes 32 |
|---|
| 224 | | - | as to the existence of damage or the chosen manner of repair. The time limitations set forth in this 33 |
|---|
| 225 | | - | subsection may be extended by mutual agreement between the auto body repair shop and the 34 |
|---|
| 191 | + | LC002002 - Page 6 of 9 |
|---|
| 192 | + | of the director, to: 1 |
|---|
| 193 | + | (1) A monetary penalty of not more than twenty-five thousand dollars ($25,000) for each 2 |
|---|
| 194 | + | and every act or violation not to exceed an aggregate of two hundred fifty thousand dollars 3 |
|---|
| 195 | + | ($250,000) pursuant to any hearing; and/or 4 |
|---|
| 196 | + | (2) Suspension or revocation of the insurer’s license; and/or 5 |
|---|
| 197 | + | (3) Payment of a monetary penalty of one thousand dollars ($1,000) or treble damages, 6 |
|---|
| 198 | + | whichever is greater, for each violation, to the consumer, or consumers, who filed the complaint 7 |
|---|
| 199 | + | which resulted in a finding of a violation of the cease and desist order. 8 |
|---|
| 200 | + | SECTION 2. Section 27-10.1-6 of the General Laws in Chapter 27-10.1 entitled "Motor 9 |
|---|
| 201 | + | Vehicle Damage Appraisers" is hereby amended to read as follows: 10 |
|---|
| 202 | + | 27-10.1-6. Conduct of motor vehicle damage appraisers. 11 |
|---|
| 203 | + | (a) Each appraiser, while engaged in appraisal duties, shall carry the license issued to that 12 |
|---|
| 204 | + | appraiser by the department of business regulation and shall display it, upon request, to an owner 13 |
|---|
| 205 | + | whose vehicle is being inspected, to the auto body shop representative involved, or to any 14 |
|---|
| 206 | + | authorized representative of the department of business regulation. 15 |
|---|
| 207 | + | (b) An insurer's assigned appraiser, or representative, shall promptly schedule an 16 |
|---|
| 208 | + | appointment for appraisal of a damaged vehicle with the auto body repair shop, at an agreed upon 17 |
|---|
| 209 | + | date and time, during normal business hours. 18 |
|---|
| 210 | + | (b)(c) The appraiser shall leave a legible copy of his or her appraisal with the auto body 19 |
|---|
| 211 | + | shop selected to make the repairs, which appraisal shall contain the name of the insurance company 20 |
|---|
| 212 | + | ordering it, if any, the insurance file number, the number of the appraiser’s license, and the proper 21 |
|---|
| 213 | + | identification number of the vehicle being inspected, and notice in boldface type, reading as 22 |
|---|
| 214 | + | follows: 23 |
|---|
| 215 | + | “PURSUANT TO RHODE ISLAND LAW, THE CONSUMER HAS THE RIGHT TO 24 |
|---|
| 216 | + | CHOOSE THE REPAIR FACILITY TO COMPLETE REPAIRS TO A MOTOR VEHICLE; AND 25 |
|---|
| 217 | + | AN INSURANCE COMPANY MAY NOT INTERFERE WITH THE CONSUMER’S CHOICE 26 |
|---|
| 218 | + | OF REPAIRER.” All damage unrelated to the incident or accident that occasioned the appraisal of 27 |
|---|
| 219 | + | the vehicle, or old damage, shall be clearly indicated in the appraisal. 28 |
|---|
| 220 | + | (c)(d) The appraiser shall not obtain a competitive estimate from another auto body shop 29 |
|---|
| 221 | + | unless the owner of that other shop, or his or her authorized agent, has inspected the vehicle. No 30 |
|---|
| 222 | + | competitive estimate shall be obtained by the use of photographs, telephone calls, or in any manner 31 |
|---|
| 223 | + | other than a personal inspection. 32 |
|---|
| 224 | + | (d)(e) No appraiser shall request that repairs be made in a specified auto body shop. 33 |
|---|
| 225 | + | (e)(f) Every appraiser shall re-inspect damaged vehicles when supplementary allowances 34 |
|---|
| 228 | | - | LC002002/SUB A - Page 7 of 8 |
|---|
| 229 | | - | insurer. 1 |
|---|
| 230 | | - | (b) If the two (2) appraisers fail to agree on the amount of the loss, the insurer and the 2 |
|---|
| 231 | | - | insured or claimant shall select an impartial Rhode Island licensed appraiser as an umpire appraiser. 3 |
|---|
| 232 | | - | If the two (2) appraisers are unable to agree upon an umpire within three (3) business days, the 4 |
|---|
| 233 | | - | party making the initial demand for the loss to be set by appraisal shall select an umpire. The 5 |
|---|
| 234 | | - | appraisers shall then submit their differences to the umpire appraiser. The umpire appraiser shall 6 |
|---|
| 235 | | - | render a decision within three (3) business days, and written agreement by any two (2) of the three 7 |
|---|
| 236 | | - | (3) shall set the amount of the loss. The time limitations set forth in this subsection may be extended 8 |
|---|
| 237 | | - | by mutual agreement between the auto body repair shop and the insurer; 9 |
|---|
| 238 | | - | (c) The insurer shall not engage in any act or practice of intimidation, coercion, threat, or 10 |
|---|
| 239 | | - | misrepresentation of consumer rights, for or against and insured person, claimant, or entity chosen 11 |
|---|
| 240 | | - | in this process. 12 |
|---|
| 241 | | - | SECTION 4. This act shall take effect upon passage. 13 |
|---|
| 228 | + | LC002002 - Page 7 of 9 |
|---|
| 229 | + | are requested by the auto body shops. 1 |
|---|
| 230 | + | (f)(g) No appraiser shall receive directly or indirectly any gratuity or other consideration 2 |
|---|
| 231 | + | in connection with his or her appraisal services from any person except his or her employer, or, if 3 |
|---|
| 232 | + | self-employed, his or her customers. 4 |
|---|
| 233 | + | (g)(h) No appraiser shall traffic in automobile salvage if it is obtained in any way as a result 5 |
|---|
| 234 | + | of appraisal services rendered by the appraiser. 6 |
|---|
| 235 | + | (h)(i) No appraiser shall obtain an estimate from an unlicensed automobile body repair 7 |
|---|
| 236 | + | shop nor shall any appraiser agree on a price for repairing a damaged motor vehicle with an 8 |
|---|
| 237 | + | unlicensed automobile body repair shop. Nothing contained in this section shall be construed to 9 |
|---|
| 238 | + | preclude an appraiser from dealing with any entity not subject to the licensing provisions of § 5-10 |
|---|
| 239 | + | 38-4. 11 |
|---|
| 240 | + | SECTION 3. Title 27 of the General Laws entitled "INSURANCE" is hereby amended by 12 |
|---|
| 241 | + | adding thereto the following chapter: 13 |
|---|
| 242 | + | CHAPTER 10.4 14 |
|---|
| 243 | + | MOTOR VEHICLE APPRAISAL PROVISION 15 |
|---|
| 244 | + | 27-10.4-1. Motor vehicle appraisal provision. 16 |
|---|
| 245 | + | (a) When the insurance company and the insured or claimants fail to agree on the amount 17 |
|---|
| 246 | + | of a loss, either has the right to exercise the independent appraisal process outlined in this section. 18 |
|---|
| 247 | + | Agreements by the parties shall be binding. Each shall select a competent Rhode Island licensed 19 |
|---|
| 248 | + | appraiser. The insurer's chosen appraiser shall inspect the damaged motor vehicle within three (3) 20 |
|---|
| 249 | + | business days after the written demand is received; provided, the damaged motor vehicle is on the 21 |
|---|
| 250 | + | premises of the repair shop when the request is made. If the insurer's appraiser fails to inspect the 22 |
|---|
| 251 | + | damaged motor vehicle within the three (3) business days the insurer shall forfeit its right to inspect 23 |
|---|
| 252 | + | the damaged vehicle prior to repairs, and negotiations shall be limited to labor and the price of parts 24 |
|---|
| 253 | + | and shall not, unless objective evidence to the contrary is provided by the insurer, involve disputes 25 |
|---|
| 254 | + | as to the existence of damage or the chosen manner of repair. The time limitations set forth in this 26 |
|---|
| 255 | + | subsection may be extended by mutual agreement between the auto body repair shop and the 27 |
|---|
| 256 | + | insurer. 28 |
|---|
| 257 | + | (b) If the two (2) appraisers fail to agree on the amount of the loss, the insurer and the 29 |
|---|
| 258 | + | insured or claimant shall select an impartial Rhode Island licensed appraiser as an umpire appraiser. 30 |
|---|
| 259 | + | If the two (2) appraisers are unable to agree upon an umpire within three (3) business days, the 31 |
|---|
| 260 | + | party making the initial demand for the loss to be set by appraisal shall select an umpire. The 32 |
|---|
| 261 | + | appraisers shall then submit their differences to the umpire appraiser. The umpire appraiser shall 33 |
|---|
| 262 | + | render a decision within three (3) business days, and written agreement by any two (2) of the three 34 |
|---|
| 263 | + | |
|---|
| 264 | + | |
|---|
| 265 | + | LC002002 - Page 8 of 9 |
|---|
| 266 | + | (3) shall set the amount of the loss. The time limitations set forth in this subsection may be extended 1 |
|---|
| 267 | + | by mutual agreement between the auto body repair shop and the insurer; 2 |
|---|
| 268 | + | (c) The insurer shall not engage in any act or practice of intimidation, coercion, threat, or 3 |
|---|
| 269 | + | misrepresentation of consumer rights, for or against and insured person, claimant, or entity chosen 4 |
|---|
| 270 | + | in this process. 5 |
|---|
| 271 | + | SECTION 4. This act shall take effect upon passage. 6 |
|---|