A new law took effect Tuesday that says insurers must use estimating systems "in their entirety."

Rhode Island has again been successful in passing some unique legislation to address repairer complaints over some insurers selective use of P-pages when appraising collision-damaged vehicles.

The Rhode Island House and Senate on Tuesday both voted to override the veto of Governor Donald L. Carcieri on two collision repair bills. House Bill 5549 now makes it an unfair claims settlement practice for an insurer to modify any estimating system without a prior agreement with the shop, or fail to use the system in its entirety when appraising collision damage.

The law, which became effective immediately upon passage on Tuesday, further states that it is also an unfair claims settlement practice for an insurer to refuse payment of any documented paint and materials charges dictated by recognized estimating software.

Norm Duquette, an estimator at Providence Auto Body in Rhode Island, explained the need for this legislation. "Each system has it own procedures, its own instruction manual if you want to call it that, what is included and what is not included. Ninety percent of the insurance companies out there want to pick and choose certain items in the book. If it means they have to pay more money out, they don't want to do it. They tell you what estimating system they want you to use, and then they don't want to pay for the items that their system says are required for the repair."

The law contains a provision for DRP shops, stating that these practices shall not be considered an unfair claims settlement practice if they are done with a DRP facility.

John Petrarca, owner of Providence Auto Body and president of the Auto Body Association of Rhode Island said, "It's a big win. Unless insurers are forced to do something, they are not going to do it." "I put a copy of the bill on my desk this morning," Duquette said. HB 5549 further requires that insurers may not limit the amount paid for a repair if consumer elects to have their vehicle repaired at a shop of their choice, based on the charges of a DRP shop, should the consumer have elected to use the insurer's shop. Also on Tuesday, the Rhode Island House and Senate overrode a veto a second collision repair bill designed to educate consumers about their right to choose a repair facility.

House Bill 5547 requires insurers, beginning on January 1, 2008, to put the following disclosure on all proof of financial responsibility cards, PURSUANT TO RHODE ISLAND LAW, THE CONSUMER HAS THE RIGHT TO CHOOSE THE REPAIR FACILITY TO COMPLETE REPAIRS TO A MOTOR VEHICLE. AN INSURANCE COMPANY MAY NOT INTERFERE WITH THE CONSUMER'S CHOICE OF REPAIRER.

Petrarca said that these successes are due to shop owner involvement in the legislative process in Rhode Island. "We have been working at this for years, and we will be right back in January to continue working. We're not doing anything special," Petrarca explains. "The problem in this industry is that nobody gets engaged. They think it can't be changed. But it can be changed. The more people you get engaged, the more you explain your plight, the more they listen. Our legislature is one hundred percent behind us because I think we have proved our case.

"We get out and talk to our representatives at their fundraising events. When you get one of those fundraising tickets in the mail and you throw in the trash, that's a missed opportunity. State house hearings are very formal, you only get three minutes to explain your case, but when you go to a fundraiser, you are speaking to the same people on a personal level. Our legislators are real people, they are businessmen, they're school teachers, they understand what we are telling them."