Rhode Island Senator Introduces Insurer Unfair Claims Practices Bill
March 7, 2013
March 7, 2013—Rhode Island state Sen. Maryellen Goodwin (D-1) has introduced Rhode Island Senate Bill 465, which amends current state law regarding insurance unfair claims practices.
The bill proposes that a motor vehicle designated as a total loss if the cost to rebuild or reconstruct the vehicle to pre-accident condition is less than 75 percent of the fair market value constitutes an unfair claims practice.
At the owner’s request and with express written authorization, an insurance company can agree to deem a vehicle a total loss even if the cost to rebuild the vehicle is less than the 75 percent fair market value of the motor vehicle.
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