Providence Journal 4:16 PM Thu, Dec 10, 2009
C. Eugene Emery Jr.
PROVIDENCE, R.I. - The Department of Business Regulation (DBR) has fined Allstate Insurance Co. $5,000 after concluding that a company representative violated a Rhode Island law that lets consumers choose where they want to have their vehicles repaired.
The law bans insurance companies from "interfering with the insured's or claimant's free choice of repair facility."
DBR hearing officer Elizabeth Kelleher Dwyer ruled that after Dennis D'Ambra, whose address was not available, informed Allstate claim representative Darlene Sczygiel that he wanted the work done at Providence Auto Body, she told him that the repair shop was not approved, without explaining that he could still have his car repaired there.
Instead, Sczygiel tried to get him to take his car to a drive-in claim center, saying the process would be faster.
In addition, Dwyer concluded that Allstate inappropriately delayed the appraisal and repair work at Providence Auto Body by 22 days.
There was undisputed testimony, according to Dwyer, that Sczygiel failed to directly inform D'Ambra of his right, under the law, to select his own auto body shop.
The decision says D'Ambra became so frustrated that he arranged to have his own insurance company pay for the repairs and get reimbursed by Allstate.
Allstate argued that it didn't violate the law because it never recommended a specific shop for the repairs.
But Dwyer said the law also prohibits insurance companies from interfering with a consumer's choice, and "Allstate took a number of actions which made it much more difficult for D'Ambra to have his vehicle repaired" at Providence Auto Body, which filed the complaint on his behalf.
Allstate has until Dec. 20 to appeal in Superior Court.
The Nov. 20 decision came 19 months after DBR held its hearing on the case.
Dwyer said the delay was caused by "the press of business. Our staff is very low. It doesn't normally take that long."
