The bill in question amends the "Unfair Claims Settlement Practices Act" by defining what constitutes unfair claims practices by insurers, such as misrepresenting policy facts, failing to acknowledge claims promptly, not attempting fair settlements, and compelling insured parties to sue for due amounts. It also addresses issues like settling for less than reasonable amounts, altering applications without consent, delaying investigations or payments, and not providing claim forms in a timely manner. The bill includes insertions and deletions to the existing law, notably increasing the damage threshold for requiring a licensed appraiser from $2,500 to $5,000 and extending the timeframe for an initial appraisal from three to four business days. It also clarifies the designation of a motor vehicle as a total loss and the definition of "fair market value," prohibits certain practices related to motor vehicle replacement services, and requires insurers to compensate auto body shops fairly using recognized software programs.

Additionally, the bill specifies that total loss claims on motor vehicles must have condition adjustments that align with nationally recognized retail value standards and mandates that insurers inform vehicle owners about the salvage or reconstructed title process in writing, obtaining written consent if the insurer is not retaining the salvage. It corrects the chapter number for the title concerning salvage and reconstructed titles from chapter 1 to chapter 46. The bill also outlines that insurers cannot refuse to pay for necessary sublet services in auto repairs and clarifies that the provisions do not interfere with direct repair program contracts, while ensuring that insurers cannot limit or discount reasonable repair costs if an insured chooses their own repair shop. The increase in the damage amount requiring a licensed appraiser's assessment to $5,000 and the bill is set to take effect upon passage.

Statutes affected:
640: 27-9.1-4