The Rhode Island Supreme Court will hear an appeal regardingwhether auto insurers in the state must conduct a "labor ratesurvey," and use the results as the sole factor in determiningprevailing auto body labor rates.

As reported on Aug, 15 by NU Online, the Rhode Island SuperiorCourt ruled in Auto Body Association of Rhode Island (ABARI) vs.State of Rhode Island Department of Business Regulation (DBR) thatthe legislative intent of a 2006 statute was unambiguous when itstated, "Each insurer must conduct an auto body labor rate survey,in writing, annually to determine a prevailing auto body labor ratefor fully licensed auto body repair facilities."

In developing a regulation on the statute, the DBR had said itdid not interpret the legislative intent to mean that the surveyshould be used as the sole factor in determining and setting theprevailing auto body labor rate.

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