AIA Commends Rhode Island Legislature's Actions

The Rhode Island General Assembly adjourned its 2008 legislative session without passing any adverse auto body repair legislation, concluding the legislative session on a positive note for the property/casualty insurance industry, according to the American Insurance Association (AIA).

“AIA commends the General Assembly for its actions this session,” said Laura Kersey, AIA Northeast Region Assistant Vice President. “The outcome is a victory for AIA and the other members of the Rhode Island Automobile Insurers Coalition.”

The industry was successful in defeating a number of proposals that would have had a negative impact on consumers and insurers, including bills that would have interfered with an insurer's concierge service, required insurer appraisals of all vehicles with damage over $1500, and prohibited insurers from having any ownership interest in a repair facility.

Also defeated were bills that would have increased insurer physical damage loss costs by requiring insurers to pay a 7% sales tax on a total loss vehicle, and requiring insurers to have the title of vehicles determined to be a total loss stamped "for salvage parts only".

“We feel strongly that the decisions made by the General Assembly this session will ultimately benefit consumers throughout the state,” said Kersey. “We are pleased with the outcome of the session and are fully aware that auto body issues will continue to dominate insurance industry issues next session. To that end, we look forward to further educating consumers and lawmakers about the impact onerous legislation would have on the state of Rhode Island and its policyholders,” concluded Kersey.