§ 27-29-4.4. Auto body repair labor rate surveys.
(a) Every insurance carrier authorized to sell motor vehicle liability insurance 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 shall apply:
(i) "Auto body labor rate survey� is an analysis of information gathered from auto body
repair shops regarding the rates of labor that repair shops charge in a certain geographic
area.
(ii) "Contract rate� means any labor rate to which an auto body repair facility and an
insurer have agreed in a formal agreement and/or written contract.
(iii) "Direct repair program� means any methods through which an insurer refers, suggests,
or recommends a specific auto body repair facility, with whom the insurer has a formal
agreement and/or contract to provide auto body repair services, to insureds and/or
claimants.
(iv) "Independent auto body repair facility� means any auto body repair facility that does
not have a formal agreement and/or written contract with an insurer to provide auto
body repair services to insureds and/or claimants.
(v) "Prevailing auto body labor rate� means the rate determined and set by an insurer
as a result of conducting an auto body labor rate survey in a particular geographic
area and used by insurers as a basis for determining the cost to settle automobile
property damage claims.
(2) Each insurer must annually conduct a separate and distinct written auto body labor
rate survey for each classification of auto body shops as established by the department
of business regulation pursuant to § 5-38-5, to determine a separate and distinct prevailing auto body labor rate for each classification
of fully licensed 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 formal agreement or contract to provide auto
body repair services to insureds and/or claimants; rates paid as a result of subrogation,
rates obtained from auto body repair facilities in a different classification than
that being surveyed, or rates from a repair shop facility holding a limited or special
use license.
(4) Each auto body labor rate survey shall include the following:
(i) The name and address of each shop surveyed in the labor survey;
(ii) The total number of shops surveyed;
(iii) The prevailing rate established by the insurer for each classification of full collision
licensed auto body repair facilities; and
(iv) A description of the formula or method used to calculate or determine the specific
prevailing rate reported.
(5) Each insurer must report the results of their auto body labor rate survey to the department
of business regulation insurance division.
(6) The department of business regulation must promulgate regulations related to auto
body labor rate surveys by October 1, 2006, establishing the following:
(i) A questionnaire that must be used by all insurers in their 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 all surveys submitted for compliance
with this section and any rules and regulations promulgated by the department.
(b) Nothing contained in this section shall require an insurer to establish the prevailing
rate for each classification of full collision licensed auto body repair facilities
based solely on the survey results.