By mandating impartiality, the law seeks to create a more equitable claims resolution process for Rhode Island drivers.

Rhode Island Gov. on July 2 signed a bill into law that changes the process for resolving appraisal disputes between auto insurers and policyholders in the state.

The act, introduced as HB 6054 in March, aims to promote fairness and transparency when disputes arise over vehicle property damage claims, by allowing the claimant to invoke a right to appraisal.

The legislation requires that both the insurer and the claimant designate their own “disinterested Rhode Island licensed appraiser at their own expense.” The insurer’s choice has four business days to complete the appraisal, or the insurer forfeits its right to inspect the damaged vehicle prior to repairs. In that case, negotiations will 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 allows the time limit to be extended by mutual agreement between the auto body repair shop and the insurer.

The law also stipulates how discrepancies between the two independent appraisals will be handled.

The law addresses concerns over conflicts of interest in the appraisal process, where previously, either party — most often the insurer — could exert undue influence over the selection of an umpire in appraisal disputes. By mandating impartiality, the law seeks to create a more equitable claims resolution process for Rhode Island drivers.

Passed unanimously in committee with a 4-0 partisan vote in favor by Democrats, the bill marks 100% legislative progression and is now set for implementation statewide.

The new law requires every policy to include the right to appraisal provision.