Environment
No direct effect
Neutral — no direct effect identified.
Benefits
- No material direct effect identified.
Risks
- No material direct effect identified.
StateRhode IslandTo Governor
HB 7866: AN ACT RELATING TO INSURANCE -- UNFAIR CLAIMS SETTLEMENT PRACTICES ACT
Jackie Baginski
HB 7866 status: To Governor — 06/26/2026 Effective without Governor's signature (updated Jun 26, 2026).
Source
OpenStates
Confidence
Low
Analysis basis
OpenStates summary
01
What this bill does
Official summary alongside an AI-generated read on where it stands and why.
Overall Score
47OUT OF 100
Score:47/100 civic fit
Risk:Moderate Risk
Impact:Moderate Impact 40/100
Constitutionality95%
Bipartisan70%
Public opinion50%
Bill summary
What changes
The legislation amends the Unfair Claims Settlement Practices Act to raise the threshold for declaring a vehicle a total loss from 80% of its value to 85%.
Who is affected
Automobile insurance policyholders, insurance companies operating in Rhode Island, and vehicle repair shops.
Requirements and enforcement
Insurance companies must now only declare a vehicle a total loss if repair costs meet or exceed 85% of the vehicle's value.
Costs and funding
Potentially higher repair costs for insurance companies; variable impact on consumer insurance premiums.
When it takes effect
Effective June 26, 2026.
Potential benefits
Policyholders may retain vehicles that were previously designated for total loss; potentially reduces the number of vehicles removed from the road.
Risks and tradeoffs
Safety risks associated with returning heavily damaged vehicles to the road; potential for consumers to be left with compromised, repaired vehicles.
What is still unknown
The long-term impact on insurance premium pricing and the actual quality control on repairs mandated under the higher threshold.
02
Impact analysis
✦ AI analysisModeled effects across six domains, estimated from bill text and comparable legislation.
Economy
Mixed / Neutral
50%
Benefits
- Increases the threshold to declare a total loss, potentially reducing the frequency of total loss insurance payouts.
- Allows vehicle owners to retain their vehicles more often when damage costs are below the new 85% threshold.
- Potentially decreases demand for total loss vehicle processing, benefiting policyholder retention.
Risks
- May increase repair costs for insurance companies by requiring repairs rather than total settlements.
- Could lead to higher insurance premiums if repair costs are consistently near the 85% threshold.
- Risk of consumers holding depreciated assets that have been extensively repaired.
Society
Mixed / Neutral
50%
Benefits
- Provides consumers more control over keeping their current vehicle after an accident.
- May avoid the inconvenience and stress of involuntary vehicle replacement.
- Potentially beneficial for consumers who prefer repairing known vehicles over searching for replacements.
Risks
- Risk of consumers being stuck with vehicles that have suffered significant structural or safety-critical damage.
- Possible reduction in 'diminished value' compensation options for consumers.
- Increased risk of owning a vehicle with hidden defects after significant repair work.
Technology Industry
No direct effect
Neutral — no direct effect identified.
Benefits
- No material direct effect identified.
Risks
- No material direct effect identified.
Civic Accountability
No direct effect
Neutral — no direct effect identified.
Benefits
- No material direct effect identified.
Risks
- No material direct effect identified.
Public Health & Safety
Mixed / Neutral
40%
Benefits
- Encourages the repair and continued maintenance of existing vehicles.
- Limits the rapid cycling of vehicles out of use through total loss declarations.
- Promotes resource efficiency by keeping functional assets in service.
Risks
- Increased risk of vehicles with significant structural damage remaining on public roads.
- Potential for substandard repairs to be performed to keep costs under the 85% threshold.
- Compromised safety integrity in older or heavily damaged vehicles if not repaired to factory standards.
03
How trustworthy & consequential it is
Sourcing already shown above, this is what the analysis found worth flagging.
Source
OpenStates
Official bill text or data from OpenStates.
Confidence
Low
Information is limited or incomplete.
Analysis basis
OpenStates summary
Source used for this bill's analysis.
Source note
The shift to an 85% threshold for total loss may increase the risk of significantly damaged vehicles being returned to service, posing potential public safety concerns.
Analysis scope
Source provided is a summary abstract; full legislative text detailing implementation nuances is not available.
04
Where it stands
Official record- IntroducedComplete
- CommitteeComplete
- Chamber votesComplete
- Final agreementComplete
- GovernorCurrent
- EnactedUpcoming
05
How it affects your district
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06
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