230 R.I. Code R. 230-RICR-20-50-3.7

Current through December 3, 2024

Section 230-RICR-20-50-3.7 - Conduct

A. A licensee shall inform the Department in writing of any change of address or any change of name within thirty (30) days of the change.

B. If a licensee holds an insurance license in any other state, he or she shall immediately notify the Department if his or her insurance license is suspended or revoked or not renewed for any reason.

C. Licensees shall comport themselves in accordance with all Rhode Island laws including but not limited to R.I. Gen. Laws § 27-10.1-6 and all regulations issued thereunder.

D. Each appraiser, while engaged in appraisal duties, shall carry the license issued to that appraiser and shall display it, upon request, to an owner whose vehicle is being inspected, to the auto body shop representative involved, or to any authorized representative of the Department.

E. The appraiser shall prepare and leave a legible copy of his or her independent appraisal with the auto body shop selected to make the repairs at time of initial inspection. All damage unrelated to the incident or accident that occasioned the appraisal of the vehicle, or old damage, shall be clearly indicated in the appraisal.

1. The appraisal shall contain the name of the insurance company ordering it, if any, the insurance file number, the number of the appraiser's license, and the proper identification number of the vehicle being inspected and a notice in boldface type, reading as follows:

a. 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.

2. If it becomes impracticable, due to unforeseeable circumstances, to leave a legible copy of the appraisal at the time of initial inspection, whether due to unavailability of the required information or for other good explained reason, the appraiser shall leave a document with all of the information listed in § 3.7(E)(1) of this Part and a statement of the reason that the appraiser cannot leave a copy of the appraisal with the shop at time of initial inspection. In addition, the appraiser shall either leave, fax or e-mail a legible copy of the appraisal to the auto body shop within a period not later than 24 hours from the initial inspection by the appraiser.

F. The appraiser shall perform an initial appraisal within three (3) business days after a request is received from an auto body shop provided that the damaged motor vehicle is on the premises of the repair shop when the request is made. This requirement may be modified by the mutual agreement of the auto body repair shop and the insurer.

G. The appraiser shall not obtain a competitive estimate from another auto body shop unless the owner of that other shop, or his or her authorized agent, has inspected the vehicle. No competitive estimate shall be obtained by the use of photographs, telephone calls, or in any manner other than a personal inspection.

H. No appraiser shall request that repairs be made in a specified auto body shop. Once the insured or claimant has advised the insurer that an auto body repair shop has been selected, the appraiser may not recommend that a different auto body repair shop be selected to repair the automobile.

I. Every appraiser shall re-inspect damaged vehicles when supplementary allowances are requested by the auto body shops within four (4) business days after a request is made, unless the request was not for supplementary allowances but for allowances previously considered, discussed and disallowed, in which case they would not be supplementary. In the course of inspection for supplementary allowance visits, the appraiser shall not adjust allowances previously considered and approved, unless agreed to by the auto body shop. The purpose of the supplementary allowance is solely to re-inspect hidden or supplemental damage not visible during initial inspection. This does not prohibit the insurer from informing the owner of the vehicle or investigating further if it finds that work was not done in accordance with the appraisal. This requirement may be modified by the mutual agreement of the auto body repair shop and the insurer.

J. No appraiser shall receive or pay directly or indirectly any gratuity or other consideration in connection with his or her appraisal services from or to any person except his or her employer, or, if self-employed, his or her customers.

K. No appraiser shall traffic in automobile salvage if it is obtained in any way as a result of appraisal services rendered by the appraiser.

L. No appraiser shall obtain an estimate from an unlicensed automobile body repair shop nor shall any appraiser agree on a price for repairing a damaged motor vehicle with an unlicensed automobile body repair shop. Nothing contained in this subsection shall be construed to preclude an appraiser from dealing with any entity not subject to the licensing provisions of R.I. Gen. Laws § 5-38-4.

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

N. No appraiser 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

1. damage to its unitized body construction;

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

3. damage to the front suspension;

4. metal in contact with any tire;

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

6. inoperable tail lights;

7. broken glass affixed to the vehicle or a cracked windshield; or

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

O. An appraiser appraising a claim for motor vehicle physical damage shall assure that the vehicle owner is notified 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.

P. An appraiser 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.

Q. For any automobile which is less than forty-eight (48) months beyond the date of manufacturer, the insurer must provide a written notice to the vehicle owner that:

1. 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

2. 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.

R. 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.

S. The aftermarket parts and OEM parts requirements of this part do 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.

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

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

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

3. 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;

4. 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;

5. 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;

6. 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.

U. All persons, partnerships, corporations, or individuals engaged in the motor vehicle physical damage appraisal business shall operate separate and apart from any body repair shop, or motor vehicle repair shop, of any new or used automobile dealership. Those engaged in this business shall retain a permanent established address affording themselves to the general public during normal business hours.

V. Records shall be maintained for at least 5 years after the termination of the appraisal and shall be open to examination by the Department at all times. Appraisers shall maintain records of all appraisals not left with the shop pursuant to § 3.7(E)(2) of this Part for production to the Department on demand.

W. An appraiser shall make an independent appraisal of any motor vehicle damage and shall not be influenced by the adjuster or insurer requiring the appraisal, nor the body shop representative selected by the claimant to repair the vehicle.

X. If the claimant or insured elects to have a vehicle repaired at an auto body shop of the claimant or insureds choice, the appraiser may not:

1. 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.

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

3. Fail to use a manual or system in its entirety in the appraisal of a motor vehicle

4. 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).

5. § 3.7(X) of this Part does not apply to direct repair programs where an insurer and body shop have entered into a contract.

Y. Appraisers shall not terminate an appraisal or inspection from the time it begins until it is completed during the normal business hours of the shop unless it becomes impracticable whether due to unavailability of required information or for other good explained reason.

Z. Appraisers shall conduct themselves in a professional manner by fair and honorable dealings and shall refrain from intimidation and/or threats.

AA. Appraisers are expected to contact the auto body shop in advance to establish an opportunity for an On-Site Visit.

BB. If the appraiser asks the auto body shop to create access to a compartment of the vehicle, the appraiser shall allow reasonable collision access time. In the event that a vehicle has been disassembled, the appraiser may require the auto body shop to re-assemble the vehicle, and the appraiser shall allow reasonable re-assembly time.

230 R.I. Code R. 230-RICR-20-50-3.7

Amended effective 6/11/2019
Amended effective 12/24/2019