(a)  When the insurance company and the insured or claimants fail to agree on the amount of a loss, either has the right to exercise the independent appraisal process outlined in this section. Agreements by the parties shall be binding. Each shall select a disinterested Rhode Island licensed appraiser. The insurer’s chosen appraiser shall inspect the damaged motor vehicle within three (3) business days after the written demand is received; provided, the damaged motor vehicle is on the premises of the repair shop when the request is made. If the insurer’s appraiser fails to inspect the damaged motor vehicle within the three (3) business days the insurer shall forfeit its right to inspect the damaged vehicle prior to 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 time limitations set forth in this subsection may be extended by mutual agreement between the auto body repair shop and the insurer.

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Terms Used In Rhode Island General Laws 27-10.4-1

  • Appraisal: A determination of property value.
  • Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
  • person: may be construed to extend to and include co-partnerships and bodies corporate and politic. See Rhode Island General Laws 43-3-6

(b)  If the two (2) appraisers fail to agree on the amount of the loss, the insurer and the insured or claimant shall select an impartial Rhode Island licensed appraiser as an umpire appraiser. If the two (2) appraisers are unable to agree upon an umpire within three (3) business days, the party making the initial demand for the loss to be set by appraisal shall select an umpire. The appraisers shall then submit their differences to the umpire appraiser. The umpire appraiser shall render a decision within three (3) business days, and written agreement by any two (2) of the three (3) shall set the amount of the loss. The time limitations set forth in this subsection may be extended by mutual agreement between the auto body repair shop and the insurer.

(c)  The insurer shall not engage in any act or practice of intimidation, coercion, threat, or misrepresentation of consumer rights, for or against an insured person, claimant, or entity chosen in this process.

History of Section.
P.L. 2023, ch. 342, § 3, effective June 26, 2023; P.L. 2023, ch. 343, § 3, effective June 26, 2023.