Following Rhode Island’s example, the Coalition for Fair Insurance Practices announced on June 4 that it is calling for state legislatures across the country to enact legislation to remove barriers to free trade in the insurance replacement segment of the auto rental industry.
The Rhode Island Senate, and its committee on Commerce, Housing and Municipal Government, is currently considering this type of legislation.
“We are very encouraged by the progress this legislation has made in Rhode Island, and having Rhode Island lead the way on what will be a national push for legislation like this has several important advantages,” coalition co-founder Ken Blum said in a statement.
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“If Bill 8239 is passed, the next step will be to begin work on passing similar legislation in other states. In order to do that, we must reach out to consumers and businesses impacted by these unfair claims practices and urge them to support legislation in their state. That makes education the No. 2 priority for us, behind getting the law passed.”
The proposed legislation would give consumers in Rhode Island the right to control which auto rental company they rent their replacement vehicle from when an insurance company provides an auto rental benefit.
Violation of the Unfair Claims Practices Act can result in fines for the insurer of $10,000 per violation, as well as suspension and revocation of the insurer’s license.
