AN ACT RELATING TO INSURANCE -- MOTOR VEHICLE APPRAISAL PROVISION (Requires an insurance company to directly pay the insured's chosen appraiser and the umpire appraiser, if applicable, upon receipt of a "direction to pay" executed by an insured or claimant.)

H7864

2026 -- H 7864
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LC004749
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STATE OF RHODE ISLAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2026
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A N A C T
RELATING TO INSURANCE -- MOTOR VEHICLE APPRAISAL PROVISION

Introduced By:
Representatives O'Brien, Slater, and Dawson

Date Introduced:
February 27, 2026

Referred To:
House Corporations
It is enacted by the General Assembly as follows:
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SECTION 1. Section 27-10.4-1 of the General Laws in Chapter 27-10.4 entitled "Motor
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Vehicle Appraisal Provision" is hereby amended to read as follows:
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27-10.4-1. Motor vehicle appraisal provision.
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(a) When the insurance company and the insured or claimant shall fail to agree as to the
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amount of the loss, the insured or claimant has the right to exercise the independent appraisal
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process outlined in this section.
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(1) The insured or claimant, and the insurer, shall each select their own disinterested Rhode
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Island licensed appraiser at their own expense. The insurer’s chosen appraiser shall inspect the
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damaged motor vehicle within four (4) business days after the written demand is received, provided
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the damaged motor vehicle is on the premises of the repair shop when the request is made.
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(2) If the insurer’s appraiser fails to inspect the damaged motor vehicle within four (4)
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business days the insurer shall forfeit its right to inspect the damaged vehicle prior to repairs, and
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negotiations shall be limited to labor and the price of parts and shall not, unless objective evidence
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to the contrary is provided by the insurer, involve disputes as to the existence of damage or the
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chosen manner of repair. The time limitations set forth in this subsection may be extended by
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mutual agreement between the auto body repair shop and the insurer.
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(b) If the two (2) appraisers are unable to resolve the dispute between the insurance
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company and the insured or claimant, then the two (2) appraisers shall submit to each other their
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best proposal to resolve the disagreement.

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(1) If the proposals differ by fifteen percent (15%) or less, the amount of the loss shall be
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the midpoint between them.
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(2) If the proposals differ by more than fifteen percent (15%), then, within three (3)
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business days, the appraisers shall submit the names of three (3) disinterested Rhode Island licensed
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appraisers to each other. The appraisers will endeavor to agree on the selection of one of the
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proposed candidates to act as umpire.
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(3) In the event the parties are unable to agree on a candidate to act as umpire, the insured
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or claimant shall choose an independent association for arbitration such as the American
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Association of Arbitrators or similar association to provide an umpire.
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(4) The umpire shall render a decision within five (5) days of appointment.
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(5) The agreement by the parties, or the umpire’s decision, will be binding on the parties,
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except for supplemental allowances for hidden damage, parts price increases, or any other
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reasonable charges related to the loss that have not already been paid for.
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(6) If the insured or claimant initiates this appraisal provision and the final award exceeds
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the insurer’s original offer by more than twenty-five percent (25%), the insurer must reimburse all
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of the insured or claimant’s appraisal costs. If the difference is less than twenty-five percent (25%)
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the parties shall split the cost of the umpire.
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(7) If the appraiser selected by the insurer, insured, or claimant does not comply with the
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provisions of § 27-9.1-4 and chapter 10.1 of this title or any other applicable Rhode Island law or
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regulation, their appraisal shall be deemed null and void and excluded from consideration from the
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umpire.
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(8) For the purposes of this section a “disinterested Rhode Island licensed appraiser” means
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a motor vehicle damage appraiser licensed pursuant to chapter 10.1 of this title who has not
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performed an appraisal, received payment or compensation of any type from the claimant or
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insured, or the insurer, in the previous thirty (30) days.
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(9) For the purposes of this section an “insurer’' means any “insurer” as defined in § 27-
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9.1-2.
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(10) Any appraiser that does not qualify as a “disinterested Rhode Island licensed
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appraiser” may be allowed by mutual agreement of both the parties.
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(11) Neither party shall waive any rights under the applicable insurance policy which are
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not part of the appraisal process.
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(12) The insurer shall not refuse to honor a "direction to pay" executed by an insured or
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claimant, indicating that the insured or claimant wishes to have the insurance company directly pay
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the insured's chosen appraiser and the umpire appraiser, if applicable.

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(c) The insurer shall not engage in any act or practice of intimidation, coercion, threat, or
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misrepresentation of consumer rights, for or against an insured person, claimant, or entity chosen
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in this process.
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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 -- MOTOR VEHICLE APPRAISAL PROVISION
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This act would require an insurance company to directly pay the insured's chosen appraiser
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and the umpire appraiser, if applicable, upon receipt of a "direction to pay" executed by an insured
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or claimant.
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This act would take effect upon passage.
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