Bill > H6053

This bill amends Rhode Island's Unfair Claims Settlement Practices Act to change how insurers determine whether a motor vehicle is a total loss. Specifically, the bill raises the threshold for declaring a vehicle a total loss from 75% to 85% of the vehicle's fair market value. This means that if the cost to repair a damaged vehicle to its pre-accident condition is less than 85% of the vehicle's value immediately before the damage occurred, the insurer cannot automatically declare it a total loss. The bill also requires insurers to compensate auto body repairers for procedures recommended by original equipment manufacturers (OEM) or industry-recognized collision repair programs like Alldata, Repairlogic, and CCC Repair Methods. Additionally, the bill clarifies that "fair market value" means the retail value of a vehicle as determined by a nationally recognized automotive industry valuation guide. The legislation provides some flexibility, allowing vehicle owners to request a total loss designation even if repair costs are below 85% of the vehicle's value, and it mandates that any value adjustments must be itemized, fair, and reasonable. The act will take effect immediately upon its passage.

Business and Industry

https://status.rilegislature.gov/