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Rhode Island legislature targets discounts on deductibles

DISCOUNTING

The Rhode Island legislature is considering a new bill that would give the state the power to revoke or deny the license of a body shop that offers customers rebates or discounts to offset their insurance policy deductibles.

House Bill 7994, introduced by Rep. Timothy Williamson (D-Coventry,West Warwick), adds language to section 5-3810 of the state's general laws that establishes criteria for denying, suspending or revoking body repair shop licenses.

The new language would permit the state to revoke a license "For rebating or offering to rebate the customers insurance policy deductible as an inducement to the customer to have the vehicle repaired at the licensee's body repair ...

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