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2012 -- S 2661 | |
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LC01807 | |
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STATE OF RHODE ISLAND | |
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IN GENERAL ASSEMBLY | |
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JANUARY SESSION, A.D. 2012 | |
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A N A C T | |
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RELATING TO INSURANCE -- UNFAIR COMPETITION AND PRACTICES | |
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Introduced By: Senator Maryellen Goodwin | |
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Date Introduced: March 01, 2012 | |
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Referred To: Senate Judiciary | |
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It is enacted by the General Assembly as follows: | |
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SECTION 1. Section 5-38-5 of the General Laws in Chapter 5-38 entitled "Automobile |
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Body Repair Shops" is hereby amended to read as follows: |
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5-38-5. Rules and regulations. -- The auto collision repair licensing advisory board shall |
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with the director's approval: |
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(1) Establish any rules, regulations, and procedures that it deems appropriate, and all |
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those rules, regulations, and procedures constitute a public record. |
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(2) Establish standards for sanitary, hygienic, and healthful conditions of the work |
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premises and facilities used by persons licensed by the board. |
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(3) Establish minimum requirements for the licenser of auto body repair shops. |
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(4) Establish minimum requirements for the certification of auto repair technicians, other |
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than those whose work is limited to glass repair and/or replacement. |
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(5) Establish three (3) classifications of full collision licensees based upon the amount |
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and type of equipment maintained and used by the auto body shop, the number of certified |
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technicians employed by the auto body shop, certification and compliance with environmental |
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agencies such as the EPA, and any other criteria the board believes necessary to classify auto |
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body shops. |
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SECTION 2. Section 27-29-4.4 of the General Laws in Chapter 27-29 entitled "Unfair |
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Competition and Practices" is hereby amended to read as follows: |
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27-29-4.4. Auto body repair labor rate surveys. -- (a) Every insurance carrier |
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authorized to sell motor vehicle liability insurance in the state shall conduct an auto body repair |
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labor rate survey, subject to and in accordance with the following provisions: |
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(1) When used in this section the following definitions shall apply: |
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(i) "Auto body labor rate survey" is an analysis of information gathered from auto body |
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repair shops regarding the rates of labor that repair shops charge in a certain geographic area. |
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(ii) "Prevailing auto body labor rate" means the rate determined and set by an insurer as a |
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result of conducting an auto body labor rate survey in a particular geographic area, and used by |
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insurers as a basis for determining the cost to settle automobile property damage claims. |
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(iii) "Independent auto body repair facility" means any auto body repair facility that does |
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not have a formal agreement and/or written contract with an insurer to provide auto body repair |
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services to insureds and/or claimants. |
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(iv) "Direct repair program" means any methods through which an insurer refers, |
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suggests, recommends a specific auto body repair facility, with whom the insurer has a formal |
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agreement and/or contract to provide auto body repair services, to insureds and/or claimants. |
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(v) "Contract rate" means any labor rate to which an auto body repair facility and an |
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insurer have agreed in a formal agreement and/or written contract. |
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(2) Each insurer must conduct an auto body labor rate survey for each classification of |
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auto body shops as defined by the department of business regulation, in writing, annually to |
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determine a prevailing auto body labor rate for each classification of fully licensed auto body |
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repair facilities. |
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(3) Insurers may not use an auto body labor rate survey, contract rates from auto body |
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repair facilities with which it has a formal agreement or contract to provide auto body repair |
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services to insureds and/or claimants, rates paid as a result of subrogation, or rates from a repair |
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facility holding a special use license. |
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(4) Each auto body labor rate survey shall include the following: |
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(i) The name and address of each shop surveyed in the labor survey; |
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(ii) The total number of shops surveyed; |
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(iii) The prevailing rate established by the insurer; and |
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(iv) A description of the formula or method used to calculate or determine the specific |
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prevailing rate reported. |
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(5) Each insurer must report the results of their auto body labor rate survey to the |
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department of business regulation insurance division. |
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(6) The department of business regulation must promulgate regulations related to auto |
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body labor rate surveys by October 1, 2006 establishing the following: |
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(i) A questionnaire that must be used by all insurers in their labor rate survey; |
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(ii) Date of reporting; and |
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(iii) Number or percentage of shops to be surveyed. |
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(7) The department of business regulation shall review all surveys submitted for |
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compliance with this section and any rules and regulations promulgated by the department. |
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SECTION 3. This act shall take effect upon passage. |
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LC01807 | |
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EXPLANATION | |
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BY THE LEGISLATIVE COUNCIL | |
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OF | |
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A N A C T | |
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RELATING TO INSURANCE -- UNFAIR COMPETITION AND PRACTICES | |
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*** | |
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This act would direct the establishment of three classifications for auto body shops. |
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This act would take effect upon passage. |
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LC01807 | |
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