Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 20 - Insurance › Subchapter 50 - INSURANCE PRODUCERS AND OTHER NON INSURER LICENSEES › Part 4 - Insurance Claim Adjusters › Section 230-RICR-20-50-4.10 - Conduct - Company and Independent Adjusters

Current through June 14, 2024
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.