Gerald L. Zimmerman, senior counsel for the National Association of Independent Insurers, said that several insurance-related bills scheduled to be considered by the Rhode Island Senate Corporations Committee would stifle competition in the insurance marketplace and ultimately do Rhode Island consumers more harm than good.
He attacked the proposals as imposing a number of unnecessary restrictions and limitations on insurers, especially related to credit scoring, direct repair and the use of replacement parts stating that “All these restrictions would add up to an insurance market where competition is stifled and consumers will have fewer choices.”
The legislation consists of the following:
S.B. 2348, which would place limitations on insurers using insurance credit scores to rate or underwrite insurance;
S.B. 2557, which would eliminate any citation for speeding less than 10 miles per hour from consideration for rating or underwriting purposes;
S.B. 2584, which requires motor vehicle damage appraisers to maintain valid appraiser’s licenses and legible copies of damage appraisals;
S.B. 2587, which allows the use of aftermarket parts for auto repair only with the consent of the owner, and if the vehicle is less than 36 months old or has less than 36,000 miles;
S.B. 2617, which augments the definition of “unfair claims settlement practices” regarding auto repair insurance to include any deviation from industry-accepted repair manuals;
S.B. 2644, which allows the Department of Business Regulation to license auto body repair shops and regulates repairs done, and creates a new body to license and oversee auto body repair facilities.
The NAII is working against the adoption of any of the measures.