American Property Casualty Insurance Association Applauds Rhode Island Governor for Veto of Auto Body Bills

BOSTON, Massachusetts, July 20 (TNSPol) -- The American Property Casualty Insurance Association issued the following news release:

Rhode Island Governor Daniel McKee vetoed S.870/H.6324, auto body legislation Friday, that was opposed by the American Property Casualty Insurance Association (APCIA).

Gov. McKee said in his 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 ("markup" and "sublet services") that insurers would be required to pay to auto body shops when repairing a vehicle covered by insurance. Neither of these terms are defined and there are no clear limitations of when those costs might be appropriate."

APCIA's Frank O'Brien, vice president of state government relations, thanked Gov. McKee for the veto of S-870/ H-6324, that would allow the autobody 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 of or limit to the industry standard markup that body shops could charge, these additional costs could be significant and allow the autobody industry to pad their profits at the expense of Rhode Island drivers who already pay among the highest auto repair cost in the nation."

This was a rare veto for Gov. McKee who has only used the veto pen three other times while in office. McKee expressed concern that the measures may drive costs even higher for consumers and small businesses when the focus should be on reducing costs to help our economy grow.