Boston, Massachusetts, July 20 (TNSPol) – The American P&C Insurance Association issued the following press release:
Rhode Island Governor Daniel McKee vetoed S.870 / H.6324, auto body legislation on Friday, which was opposed by the American P&C Insurance Association (APCIA).
Governor McKee said in its veto letter that “overall the legislation will add costs without adding commensurate benefits to consumers”. The governor also said that the “legislation would add two types of costs (” marking “and” sublease services “) that insurers would be required to pay to body shops when repairing a vehicle covered by the None of these terms are defined and there are no clear limits on when these costs might be appropriate. “
APCIA Frank o’brien, Vice President of State Government Relations, thanked Governor McKee for the S-870 / H-6324 veto, this would allow the auto body industry to charge an undefined industry standard markup. “The legislation would likely increase repair costs and put upward pressure on the cost of insurance. As there is no definition or limit to the industry standard mark-up that body shops could charge, these additional costs could be significant and allow the auto body industry to recoup their profits at the expense of Rhode Island drivers who already pay some of the highest auto repair costs in the country. “
This was a rare veto for Governor McKee who only used the veto pen three more times during his tenure. McKee expressed concern that the measures could result in even higher costs for consumers and small businesses when the focus should be on cutting costs to help our economy grow.