RI Bill Would Slam Auto Insurers With Repair Suits, AIA Warns

Law360, New York (June 13, 2012, 4:43 PM EDT) -- The American Insurance Association on Wednesday urged Rhode Island Gov. Lincoln Chafee to veto a bill the group says would unleash a flood of lawsuits against insurance companies by handing auto body shops nationally unprecedented rights to directly sue insurers over auto repair costs.

Calling the bill passed this week by the General Assembly "reckless," AIA argued the proposed law would allow auto body shops to unilaterally set rates and sue insurers who do not agree to pay a shop's rates.

According to the group, the...
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