A Rhode Island State Superior Court ruled that auto insurers in the state must conduct a "labor rate survey" and use the results as the sole factor in determining prevailing auto body labor rates.
In reaching this determination, the R.I. Providence/Bristol County Superior Court in Providence, R.I., ruled that a 2006 legislative statute on the matter was unambiguous, contrary to the arguments of the state's Department of Business Regulation (DBR).
According to the court's decision, the statute states, in part, "Each insurer must conduct an auto body labor rate survey, in writing, annually to determine a prevailing auto body labor rate for fully licensed auto body repair facilities."
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