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Rhode Island bills would impact collision industry

Legislation affects salvage vehicles, appraisals
Friday, March 18, 2011 - 00:00
Rhode Island state Sen. Maryellen Goodwin, D-District 1, Providence, has introduced Senate Bill 661 and Senate Bill 685, which if passed would impact the collision repair industry. S.B. 661 would prohibit an appraiser or insurance carrier from deeming a motor vehicle a total loss vehicle if restoration to the pre-accident condition is less than 75 percent of the market value of the vehicle before the damages took place. S.B. 685 would place restrictions on motor vehicle damage appraisers.

S.B. 661 provides:

  1. 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 section shall be construed to preclude an appraiser from dealing with any entity not subject to the licensing provisions of Section 5-38-4.

  • No appraiser or insurance carrier shall deem a motor vehicle a total loss if the cost to rebuild or reconstruct the motor vehicle to its pre-accident condition is less than 75 percent of the fair market value of the motor vehicle immediately preceding the time it was damaged. “Fair market value” shall mean the retail value of a motor vehicle as set forth in a current edition of a nationally recognized compilation of retail values commonly used by the automotive industry to establish values of motor vehicles. Nothing herein shall be construed to require a vehicle be deemed a total loss if the total cost to rebuild or reconstruct the motor vehicle to its pre-accident condition is greater than 75 percent of the fair market value of the motor vehicle immediately preceding the time it was damaged.

     

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