§ 27-29-4.4 - Auto body repair labor rate surveys. - Rhode Island Statutes

SECTION 27-29-4.4

   § 27-29-4.4  Auto body repair labor ratesurveys. – (a) Every insurance carrier authorized to sell motor vehicle liabilityinsurance in the state shall conduct an auto body repair labor rate survey,subject to and in accordance with the following provisions:

   (1) When used in this section the following definitions shallapply:

   (i) "Auto body labor rate survey" is an analysis ofinformation gathered from auto body repair shops regarding the rates of laborthat repair shops charge in a certain geographic area.

   (ii) "Prevailing auto body labor rate" means the ratedetermined and set by an insurer as a result of conducting an auto body laborrate survey in a particular geographic area, and used by insurers as a basisfor determining the cost to settle automobile property damage claims.

   (iii) "Independent auto body repair facility" means any autobody repair facility that does not have a formal agreement and/or writtencontract with an insurer to provide auto body repair services to insuredsand/or claimants.

   (iv) "Direct repair program" means any methods through whichan insurer refers, suggests, recommends a specific auto body repair facility,with whom the insurer has a formal agreement and/or contract to provide autobody repair services, to insureds and/or claimants.

   (v) "Contract rate" means any labor rate to which an autobody repair facility and an insurer have agreed in a formal agreement and/orwritten contract.

   (2) Each insurer must conduct an auto body labor rate survey,in writing, annually to determine a prevailing auto body labor rate for fullylicensed auto body repair facilities.

   (3) Insurers may not use an auto body labor rate survey,contract rates from auto body repair facilities with which it has a formalagreement or contract to provide auto body repair services to insureds and/orclaimants, or rates from a repair facility holding a special use license.

   (4) Each auto body labor rate survey shall include thefollowing:

   (i) The name and address of each shop surveyed in the laborsurvey;

   (ii) The total number of shops surveyed;

   (iii) The prevailing rate established by the insurer; and

   (iv) A description of the formula or method used to calculateor determine the specific prevailing rate reported.

   (5) Each insurer must report the results of their auto bodylabor rate survey to the department of business regulation insurance division.

   (6) The department of business regulation must promulgateregulations related to auto body labor rate surveys by October 1, 2006establishing the following:

   (i) A questionnaire that must be used by all insurers intheir labor rate survey;

   (ii) Date of reporting; and

   (iii) Number or percentage of shops to be surveyed.

   (7) The department of business regulation shall review allsurveys submitted for compliance with this section and any rules andregulations promulgated by the department.