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Rhode IslandS31152026 Regular SessionSenateWALLET

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

Sponsored By: Hanna M. Gallo (Democratic)

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 5 benefits, 0 costs, 0 mixed.

Clear rules for totaled car payouts

An insurer can label a car a total loss only if repair costs are at least 85% of its pre-damage retail value. You may request total-loss treatment when repair costs are 75% to under 85% of that value. Insurers must use a current national retail value guide. If the insurer does not keep the salvage, it must tell the owner in writing about salvage and reconstructed-title rules.

Direct pay to adjusters and shops

If you sign a direction-to-pay, your insurer must pay your chosen licensed auto body shop directly. For property restoration work, the insurer must pay your licensed contractor directly for up to $5,000. If you hire a licensed public adjuster and sign a direction-to-pay letter, the insurer must pay the adjuster’s fee by separate check, up to 10% of the settlement, and pay you or your loss payee the balance. Insurers cannot negotiate claims with unlicensed public adjusters.

Fair appraisals and pay for car repairs

For Rhode Island–registered cars repaired in Rhode Island, these rules apply no matter where the policy was issued. If damage is over $2,500, a licensed, unaffiliated appraiser must inspect the car in person. The insurer’s appraiser must schedule quickly and do the first appraisal within 3 business days, and any supplement within 4 business days, or the insurer loses the right to inspect before repairs. Insurers must pay for documented OEM-required procedures, sublet services and related labor, and use current estimating software and standard markups. They cannot discount because their preferred shop is cheaper, or change repair manuals or cherry-pick from them. Insurers that own or require a shop must ensure workmanlike repairs. Private shop–insurer contracts remain valid, and direct-repair program contracts can have their own terms.

Faster, fairer insurance claim handling

The law strengthens claim handling. Insurers must answer your claim within 30 days unless you agree to more time. They must give needed claim forms within 10 days, explain any denial or low offer, and say which coverage each payment uses. They cannot misrepresent policy terms, lowball you to force a lawsuit, or rely on altered applications. They must investigate reasonably, decide coverage promptly after the investigation, and not mislead you about time limits to sue. Failing to follow these duties is an illegal claims practice.

Rental car choice and extended coverage

Insurers cannot pressure you to use a certain rental company. If you give a direction to pay, the insurer must pay your chosen licensed rental company directly. If the insurer causes delays, it must extend rental coverage for the length of the delay. Rental companies must be licensed under section 31-5-33.

Sponsors & Cosponsors

Sponsor

  • Hanna M. Gallo

    Democratic • Senate

Cosponsors

  • Frank A. Ciccone, III

    Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 99 • No: 9

House vote • 6/9/2026

CLAIMS SETTLEMENT PRACTICES ACT PASSAGE IN CONCURRENCE

Yes: 66 • No: 4

Senate vote • 6/3/2026

RELATING TO INSURANCE -- UNFAIR CLAIMS SETTLEMENT PRACTICES ACT Passage

Yes: 33 • No: 5

Actions Timeline

  1. Effective without Governor's signature — Chapter 286

    6/26/2026Governor

  2. Transmitted to Governor

    6/18/2026Governor

  3. House passed in concurrence

    6/9/2026House

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

    6/8/2026House

  5. Committee recommends passage in concurrence

    6/8/2026

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

    6/6/2026

  7. Referred to House Corporations

    6/4/2026House

  8. Senate read and passed

    6/3/2026Senate

  9. Placed on Senate Calendar (06/03/2026)

    5/29/2026Senate

  10. Committee recommends passage

    5/28/2026

  11. Scheduled for consideration (05/28/2026)

    5/26/2026

  12. Committee recommended measure be held for further study

    5/21/2026

  13. Scheduled for hearing and/or consideration (05/21/2026)

    5/15/2026

  14. Introduced, referred to Senate Judiciary

    3/13/2026Senate

Bill Text

  • S3115 - As Introduced

    3/13/2026

    HTMLPDF

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