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.

Plain-English Summary

When a car insurance claim is disputed — for example, if you and your insurance company disagree on how much your damaged vehicle is worth — both sides can hire their own appraisers to assess the value. Sometimes a neutral third-party appraiser, called an umpire, is also brought in to help settle the disagreement. Currently, the person filing the claim (the insured or claimant) is typically responsible for paying their chosen appraiser and may need to seek reimbursement from the insurance company separately.

This bill would change that process by requiring insurance companies to pay the insured's chosen appraiser and the umpire appraiser directly, as long as the insured or claimant signs and submits a document called a "direction to pay." This means the policyholder would no longer need to front the money for appraisal costs out of their own pocket and wait to be paid back.

This bill primarily affects Rhode Island residents who have auto insurance and find themselves in a dispute with their insurance company over a vehicle's value. It also affects insurance companies operating in Rhode Island, who would take on the responsibility of making these payments directly. The goal of the bill appears to be reducing the financial burden on everyday people navigating the claims dispute process.

As of now, the bill has been introduced in the Rhode Island House and referred to the House Corporations Committee, but the sponsor has requested it be postponed, meaning it is not currently moving forward in the legislative process.