Vetoed by Governor Lincoln Chafee

Vote Smart's Synopsis:

Vote to pass a bill authorizing auto body shops to take civil action against insurance companies.

Highlights:

• Authorizes an insured individual to select any rental company or auto body shop regardless of the insurance company's preference (Sec. 3).

• Prohibits an insurance company from limiting or reducing the “reasonable” repair costs if the insured individual's chosen auto body shop is different from the insurance company's preference (Sec. 3). 

• Requires the insurance company to negotiate with the auto body shop chosen by the insured individual and reach an agreed price with the auto body shop (Sec. 3). 

• Prohibits an insurance company from refusing to pay an auto body shop for the documented charges of an insured individual's repair claims (Sec. 3).

• Authorizes an auto body shop to take civil action against the insurance company if they are unable to reach an agreed price (Sec. 3).

• Requires an insurance company to have an independent appraisal performed if a vehicle's estimated damage exceeds $2,500 (Sec. 3). 

• Specifies that each violation by the insurance company of the listed regulations is punishable by a fine of no more than  $5,000 (Sec. 3). 

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill authorizing auto body shops to take civil action against insurance companies.

Highlights:

• Authorizes an insured individual to select any rental company or auto body shop regardless of the insurance company's preference (Sec. 3).

• Prohibits an insurance company from limiting or reducing the “reasonable” repair costs if the insured individual's chosen auto body shop is different from the insurance company's preference (Sec. 3). 

• Requires the insurance company to negotiate with the auto body shop chosen by the insured individual and reach an agreed price with the auto body shop (Sec. 3). 

• Prohibits an insurance company from refusing to pay an auto body shop for the documented charges of an insured individual's repair claims (Sec. 3).

• Authorizes an auto body shop to take civil action against the insurance company if they are unable to reach an agreed price (Sec. 3).

• Requires an insurance company to have an independent appraisal performed if a vehicle's estimated damage exceeds $2,500 (Sec. 3). 

• Specifies that each violation by the insurance company of the listed regulations is punishable by a fine of no more than  $5,000 (Sec. 3). 

Full Bill Text