PRIA Logo™
Rhode IslandH78662026 Regular SessionHouseWALLET

AN ACT RELATING TO INSURANCE -- UNFAIR CLAIMS SETTLEMENT PRACTICES ACT .

Sponsored By: Jacquelyn M. Baginski (Democratic)

Became Law

Personalized for You

How does this bill affect your finances?

Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.

Free to download

Bill Overview

Analyzed Economic Effects

8 provisions identified: 7 benefits, 1 costs, 0 mixed.

Fairer total-loss payouts and titles

Your insurer cannot call a car a total loss unless rebuild cost is at least 85% of its fair market value. You may choose a total loss if rebuild cost is 75% to under 85% of fair market value. Fair market value uses the retail value from a current national pricing guide, and any condition deductions must follow that guide and be itemized, fair, and reasonable. If the insurer does not keep the salvage, it must give you written steps for salvage and reconstructed titles and get your written consent that you will handle salvage duties and possible costs.

Independent appraisals and quick inspections

If your car’s damage is over $2,500, a licensed, independent appraiser must inspect it in person. The insurer must quickly set an appraisal time with your repair shop, inspect within 3 business days of the shop’s request, and do any needed supplemental inspection within 4 business days. If the insurer misses these times, it loses the right to inspect before repairs and cannot use that missed inspection to limit negotiations.

Faster, fairer claim handling rules

The law requires insurers to move quickly and act fairly on your claim. They must give needed claim forms within 10 days of your request and answer your claim within 30 days unless you agree to more time. They must investigate before denying, then promptly say if it is covered, and explain any denial or compromise offer in clear, accurate terms. Insurers cannot misstate your policy or your filing deadline, lowball you to force a lawsuit, or demand duplicate proof after you file a proof of loss. Payments must show which coverage applies, and failure to follow section 31-47-12.1 counts as an unfair practice.

Stronger rental car rights during claims

Insurers cannot pressure you to use a certain rental company. You can direct the insurer to pay your licensed rental company of choice. If the insurer causes a delay, it must extend your rental coverage by the same amount of time. If the insurer questions the rental charge, it must tell the rental company in writing at or before payment.

You can direct who gets paid

You can direct your insurer to pay a licensed restoration company up to $5,000 and to pay your licensed auto body shop directly. For public adjusters, a signed direction-to-pay lets the insurer issue one check to the licensed adjuster for up to 10% of the settlement and a separate check to you for the rest. Insurers cannot settle with unlicensed public adjusters. Even with a direction-to-pay, the insurer can still question coverage, whether charges relate to the loss, or amounts, and mortgage rights do not change unless the mortgagee also signs.

Your repair shop choice is protected

If you choose your own repair shop, the insurer cannot cut reasonable repair costs based on its preferred shop’s prices. If an insurer owns a repairer or makes you use one, it must ensure repairs are done in a workmanlike way. These auto-claim rules apply to all insurers when a Rhode Island–registered vehicle is repaired in Rhode Island, even if the policy came from another state.

Insurers must pay documented shop work

Insurers cannot change repair manuals or appraisal systems on their own and must use them fully. They must pay shops for documented charges shown in current industry software, including standard markups. They must also pay for OEM-required or recommended procedures and parts listed in the appraisal, and for necessary sublet services like towing, diagnostics, calibrations, release fees, and the admin time to arrange them, plus an industry-standard markup.

Direct repair contracts waive some protections

When an insurer and a repair shop have a direct repair program (DRP) contract, some protections do not apply. These contracts can waive certain rules about manuals, appraisal systems, and paying based on software and markups. If you use a DRP shop, the contract terms can change these protections.

Sponsors & Cosponsors

Sponsor

  • Jacquelyn M. Baginski

    Democratic • House

Cosponsors

  • Nathan W. Biah

    Democratic • House

  • Stephen M. Casey

    Democratic • House

  • Anthony J. DeSimone

    Democratic • House

  • Scott A. Slater

    Democratic • House

Roll Call Votes

All Roll Calls

Yes: 99 • No: 9

Senate vote • 6/11/2026

INSURANCE -- UNFAIR CLAIMS SETTLEMENT PRACTICES ACT In Concurrence

Yes: 33 • No: 5

House vote • 6/9/2026

UNFAIR CLAIMS SETTLEMENT ACT PASSAGE

Yes: 66 • No: 4

Actions Timeline

  1. Effective without Governor's signature — Chapter 287

    6/26/2026Governor

  2. Transmitted to Governor

    6/18/2026Governor

  3. Senate passed in concurrence

    6/11/2026Senate

  4. Placed on Senate Calendar (06/11/2026)

    6/9/2026Senate

  5. House read and passed

    6/9/2026House

  6. Placed on House Calendar (06/09/2026)

    6/8/2026House

  7. Committee recommends passage

    6/8/2026

  8. Scheduled for consideration (06/08/2026)

    6/6/2026

  9. Committee recommended measure be held for further study

    4/28/2026

  10. Scheduled for hearing and/or consideration (04/28/2026)

    4/24/2026

  11. Committee postponed at request of sponsor (03/26/2026)

    3/23/2026

  12. Scheduled for hearing and/or consideration

    3/20/2026

  13. Introduced, referred to House Corporations

    2/27/2026House

Bill Text

  • H7866 - As Introduced

    2/27/2026

    HTMLPDF

Related Bills

Back to State Legislation