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Monday, 14 June 2021 22:52

Rhode Island Collision Repairers Seek to Clarify Concerns with 2 House Bills

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...programs such as Mitchell's RMC, PMC Logic, Paint, Micromix or a paint manufacturer's programs. An insurer shall not discount documented charges by failing to use a system in its entirety, including an automotive industry standard markup.”

 

§27-9.1-4(25)(v) says: "When a vehicle is deemed a total loss, if the insurer is not retaining the salvage, the insurer must notify the owner of the vehicle in writing of the requirements of obtaining both a salvage title and a reconstructed title from the department of motor vehicles pursuant to chapter 1 of title 31," and would be amended to add: "and must obtain, in writing, the owner's consent and acknowledgement that the insurer is not retaining the salvage and include a statement of the owner's obligation and potential costs to dispose of or otherwise retain the salvage.”

 

Lastly, the Rhode Island Unfair Claims Settlement Practices Act would be expanded to add, “(27) Refusing to pay an auto body repair shop for documented necessary sublet services paid out to vendors or incurred by the auto body repair shop, for specialty or unique services performed in the overall repair process, including costs and labor incurred to research, coordinate, administrate or facilitate the necessary sublet service, and an automotive industry standard markup. Examples of sublet services include, but are not limited to, towing, transportation, suspension, alignments, electronic calibrations, diagnostic work, mechanical work and paid charges to release a vehicle.”

 

House Bill 6235 seeks to add six standards to Section 27-10.2-1 of the General Laws in Chapter 27-10.2, "Motor Vehicle Replacement Parts,” related to used parts insurance companies request during the collision repair.

 

First, HB 6235 includes a definition of used parts: “a motor vehicle replacement part that is a used original equipment manufacturer part.” It would then amend Chapter 27-10.2 to include the following:

 

“27-10.2-4. Standards for use of used parts. Whenever used parts are used for repairs to physically damaged motor vehicles, the following standards shall apply:

 

"(1) The used parts shall be at least equal in kind and quality to the OEM parts in terms of fit, quality, performance and warranty, and be from...


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