PROVIDENCE, R.I. - Who would want to stop repairers from matching insurance deductibles in order to attract business? In Rhode Island, the state house of representatives is reviewing a bill with just that intent. House bill 7994 gives the state the power to revoke or deny the license of a body shop that offers customers rebates or discounts to offset their auto-policy deductibles. The bill adds language to Section 5-38-10 of the state’s General Laws Setting as ground for denial, suspension or revocation of a license “rebating or offering to rebate the customer’s insurance policy deductible as an inducement to the customer to have the vehicle repaired at the licensee’s automobile repair shop.” Current restrictions in that section similarly revoke, deny or suspend shop licenses for dismantling an automobile without the written authorization of the owner, defrauding a customer or refusing to surrender the vehicle once towing and repair charges are paid, and failure to comply with the safety standards set by the industry. The bill is set for a hearing by the House Corporations Committee on March 19.
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