Rhode Island is putting insurers on the clock - appraise fast or lose your say in key parts of a motor vehicle claim.
The state’s updated Motor Vehicle Appraisal Provision (H6054), now in effect, gives insurers four business days to have their appraiser inspect a damaged vehicle after a written demand - as long as the car is at the repair shop. Miss the deadline, and the insurer forfeits the right to inspect the car before repairs begin. From that point, negotiations are limited to labor and parts prices unless the insurer can offer solid evidence to challenge the damage or repair method.
For insurance professionals, this marks a significant shift. No more drawn-out appraisals or extended delays that could tilt negotiations. Claims teams will need tighter processes to ensure compliance. And appraisers must meet stricter standards: they must be licensed in Rhode Island and have no ties to either side in the last 30 days - unless both parties agree.
The law also reshapes how disputes get resolved. If the appraisers for both sides differ by 15% or less in their loss estimates, the final figure defaults to the midpoint. If the gap is greater, an umpire must be appointed, either by agreement or through an arbitration group like the American Association of Arbitrators. The umpire must issue a decision within five business days of being appointed.
There’s also a new cost risk for insurers: if the final award exceeds the insurer’s original offer by more than 25%, the insurer must pay all of the insured’s appraisal costs. If it doesn’t exceed 25%, the parties split the umpire’s cost.
The law, introduced by Representatives Baginski, Kazarian, Corvese, and Casey, signals a clear message: insurers must act swiftly and fairly, or face consequences that could hit both their processes and bottom line.
