Two Bills Address Relationship between Auto Repair Shops and Insurance Companies

May 18, 2021

Two bills were introduced in the Rhode Island House of Representatives by Rep. William O’Brien concerning the relationship between auto repair shops and insurance companies.

The first bill, H 6234, would amend the state Unfair Claims Settlement Practices Act by:

1) clarifying that the unfair practice of refusing to compensate an auto body shop for documented charges can be identified by the use of current version automotive industry software programs, including Mitchell’s RMC, PMC Logic and Micromix, and prohibiting an insurer from discounting documented charges by failing to use a system in its entirety, including an automotive industry standard markup, and

2) making it an unfair practice to refuse to pay an auto body repair shop for documented necessary sublet services for specialty or unique services such as towing, transportation, suspension, alignment, electronic calibrations, diagnostic work and mechanical work.

For text of H 6234, CLICK HERE.

The second bill, H 6235, would define a motor vehicle Used Part as a “motor vehicle replacement part that is a used original equipment manufacturer part” and create standards for insurance companies and automobile body shops to follow in physically damaged motor vehicles with used parts.

For text of H 6235, CLICK HERE.

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