230 R.I. Code R. 230-RICR-20-50-4.10

Current through October 25, 2024

Section 230-RICR-20-50-4.10 - Conduct - Company and Independent Adjusters

A. In addition to the requirements of § 4.9 of this Part, all Company and Independent Adjusters must also comply with the following:

1. An adjuster shall promptly inform an insured or claimant of his or her free choice in the selection of an auto body repair shop. Once the insured or claimant has advised the insurer that an auto body repair shop has been selected, the adjuster may not recommend that a different auto body repair shop be selected to repair the automobile.

2. No adjuster shall request or advise any motor vehicle owner or operator to operate his or her vehicle on any public thoroughfare for the purpose of obtaining a written estimate of damage at a drive-in claims center, unless it ascertained that the vehicle meets safety requirements as determined by the department of transportation. A vehicle is unsafe for driving under this section if the vehicle has

a. damage to its unitized body construction;

b. damage to its hood catch which would probably result in an unexpected opening;

c. damage to the front suspension;

d. metal in contact with any tire;

e. any door which can't be easily opened, or which opens unexpectedly;

f. inoperable tail lights;

g. broken glass affixed to the vehicle or a cracked windshield or

h. any other condition deemed to be unsafe by the department of transportation pursuant to rules and regulations.

3. Whenever an appraisal is written on behalf of an insurer, an adjuster shall assure that the appraisal contains the name of the insurance company ordering it, the insurance file number, the number of the appraiser's license, the proper identification number of the vehicle being inspected, a clear indication of all damage unrelated to the incident or accident that occasioned the appraisal of the vehicle, or old damage, and notice in boldface type, reading as follows:

PURSUANT TO RHODE ISLAND LAW, THE CONSUMER HAS THE RIGHT TO CHOOSE THE REPAIR FACILITY TO COMPLETE REPAIRS TO A MOTOR VEHICLE; AND AN INSURANCE COMPANY MAY NOT INTERFERE WITH THE CONSUMER'S CHOICE OF REPAIRER.

4. An adjuster adjusting a claim for motor vehicle physical damage shall notify the vehicle owner in writing if he or she intends to specify the use of aftermarket parts. To comply with this provision written notice may be provided on the original appraisal of the damaged vehicle.

5. For any automobile which is less than forty-eight (48) months beyond the date of manufacturer, the adjuster must provide, or assure that the insurer has provided, written notice to the vehicle owner that:

a. he or she may require the insurer to pay for and the auto body shop to install "original equipment manufacturer parts " or "OEM parts" in the repair of a motor vehicle; or

b. he or she may require the insurer to pay for and the auto body shop to install "non-original equipment manufacturer parts" (non-"OEM parts") in the repair of a motor vehicle.

(1) To comply with this provision, written notice may be provided on the appraisal written on behalf of the insurer.

6. An adjuster shall not require the use of aftermarket parts when negotiating repairs of vehicles which are less than forty-eight (48) months beyond the date of manufacture, unless written consent from the vehicle owner to install aftermarket parts has been obtained. This shall not apply to the repair or replacement of motor vehicle glass performed by licensed motor vehicle glass repair shops pursuant to R.I. Gen. Laws Chapter 5-38.5.

7. When "OEM part(s)" are used in the repair of a motor vehicle, no insurance company may require any repairer to use repair procedures that are not in compliance with the recommendations of the original equipment manufacturer.

8. Whenever aftermarket parts are used for repairs to physically damaged motor vehicles, the following standards shall apply:

a. The aftermarket parts shall be at least equal in kind and quality to the OEM parts in terms of fit, quality and performance;

b. To the extent practical, an insurance company shall not require the use of multiple aftermarket parts distributors to provide parts for a single repair;

c. Insurers specifying the use of aftermarket parts shall make allowances for the reasonable cost of any modifications to the aftermarket parts which may become necessary when making the repair, and for the cost of fitting, removing, and/or handling aftermarket parts which do not result in the vehicle being repaired to its condition prior to the loss;

d. If the aftermarket part specified by the insurer does not result in the vehicle being repaired to its condition prior to the loss, the insurer shall then specify the use of an OEM part;

e. The automobile body shop shall promptly notify the appraiser if the aftermarket part specified by the insurer does not result in the vehicle being repaired to its condition prior to the loss and permit the appraiser to reinspect the vehicle and make appropriate supplemental authorizations, if necessary;

f. The automobile body shop shall provide documentation of aftermarket parts, which do not meet the requirements of this section, as reasonably requested by the insurer. The insurer shall be permitted to exercise any available rights of recovery against the aftermarket parts distributor.

9. An adjuster shall not require that any insured or claimant use a particular rental car agency. In accordance with R.I. Gen. Laws § 27-9.1-4(17) adjusters are not precluded from providing the name(s) of Rhode Island licensed rental car agencies with which arrangements have been made with respect to rental services.

10. An adjuster shall not refuse to honor a 'direction to pay" executed by an insured or claimant to pay directly his or her motor vehicle replacement benefit, provided the rental agency is licensed in Rhode Island. In accordance with R.I. Gen. Laws § 27-9.1-4(18) the adjuster may question or challenge the amount charged in accordance with its policy.

11. If the claimant or insured has elected to have a vehicle repaired at an auto body shop of the claimant or insureds choice, the adjuster may not:

a. Modify any published manual (i.e. motors, mitchells, or any automated appraisal system) relating to auto body repair unless there is prior agreement between the insurer and the owner of the vehicle to do so. The owner of the vehicle may delegate the ability to agree to modifications to an auto body repairer in writing.

b. Refuse to include in the adjustment of the claim documented charges as identified through industry recognized software programs or systems for paint and refinishing materials in auto body repair claims;

c. Fail to use a manual or system in its entirety in the adjustment of the claim;

d. Limit or discount the reasonable repair costs based upon the charges that would have been incurred had the vehicle been repaired by the insurer's chosen shop(s).

12. § 4.10(A)(10)(a) of this Part does not apply to direct repair programs where an insurer and body shop have entered into a contract.

13. Where applicable, adjusters shall comply with the requirements of R.I. Gen. Laws § 31-46-1.1 regarding the classification of salvage vehicles.

14. Where applicable, adjusters shall comply with the provisions of the Child Support Interception Act pursuant to R.I. Gen. Laws Chapter 27-57.

15. A licensed adjuster is subject to all applicable statutes including but not limited to R.I. Gen. Laws Chapters 27-9.1 and 27-29 and the regulations promulgated thereunder.

16. A company or independent insurance adjuster's duties include determining the amount of money that an insurance company will pay for a motor vehicle damage claim. While a company or independent adjuster may rely upon the written appraisal in the settlement of the claim, an insurance adjuster cannot require an appraiser to either include or exclude damage on an appraisal provided however; the company or independent adjuster may provide the appraiser with information relating to damage unrelated to the incident or accident that occasioned the appraisal of the vehicle, or old damage, if the information to be provided by the company or independent adjuster is required to be included by the appraiser in the appraisal pursuant to R.I. Gen. Laws § 27-10.1-6.

230 R.I. Code R. 230-RICR-20-50-4.10

Amended effective 6/11/2019