2012 -- S 2674

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LC01813

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

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A N A C T

RELATING TO INSURANCE - UNFAIR COMPETITION AND PRACTICES

     Introduced By: Senators Ruggerio, and Goodwin

     Date Introduced: March 01, 2012

     Referred To: Senate Judiciary

It is enacted by the General Assembly as follows:

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     SECTION 1. Chapter 27-29 of the General Laws entitled "Unfair Competition and

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Practices" is hereby amended by adding thereto the following section:

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     27-29-4.7. Auto body repair - Posted auto body labor rates. – Every insurer adjusting

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motor vehicle property damage claims must reimburse a licensed auto body shop its posted auto

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body labor rate when determining the amount required to repair a damaged vehicle to pre-

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accident condition, provided that the auto body shop’s posted labor rate does not exceed the

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reimbursement amount approved by the vehicle’s manufacturer for work performed at a licensed

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dealership in the state of Rhode Island.

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO INSURANCE - UNFAIR COMPETITION AND PRACTICES

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     This act would require every insurer adjusting a motor vehicle property damage claim to

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reimburse licensed auto body facilities their posted labor rates when determining the amount

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required to repair the damaged vehicle to pre-accident condition.

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     This act would take effect upon passage.

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LC01813

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