Rhode Island legislators reconsidering appraisal deadline bill

A bill has been introduced in the Rhode Island House that would increase the minimum number of days insurance companies must complete vehicle damage appraisals, as requested by auto body repair shops, from three to four.

H 7604 would also increase the penalty for failure to have an appraisal performed by a licensed appraiser from $2,500 to $5,000. It is similar to a bill that was introduced in the Senate last year that the Judiciary Committee recommended be held for further study.

The bill would update the definition of “fair market value”  under the Unfair Claims Settlement Act to include not only values commonly used by the automotive industry, but also those recognized by the insurance industry.

Upon introduction, H 7604 was referred to the House Corporations Committee. As of Tuesday, the bill hadn’t been added to a committee meeting agenda.

In July, Gov. Daniel McKee signed a bill into law that changed Rhode Island’s appraisal process.

After the appraisal clause is enacted, the insurance company’s appraiser has four days to inspect the vehicle. If it is not inspected by the deadline, the insurance company forfeits its right to inspect the vehicle before repairs, and “negotiations shall be limited to labor and the price of parts and shall not, unless objective evidence to the contrary is provided by the insurer, involve disputes as to the existence of damage or the chosen manner of repair.”

The law additionally provides an opportunity for the time limitations to be extended by mutual agreement between the auto body repair shop and the insurer.

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