Rhode Island Updates Unfair Claims Practices Act

Rhode Island Gov. Daniel McKee has signed legislation amending the state’s Unfair Claims Practices Act to change the definition of unfair claims settlement practices by insurers and motor vehicle damage appraisers.

Senate Bill 0925, which was signed last week, also creates a new chapter in the act allowing damaged vehicles to be appraised by a third party when the insurer and driver can’t agree on the amount of a loss. It took effect immediately.

Amendments to the Unfair Claims Practices Act require insurers to ‘acknowledge and compensate an auto body repairer for documented procedures identified as necessary by the original equipment manufacturer, paint manufacturer, when included in the repairer’s appraisal, or when requested by the repairer.’