The bill amends the "Unfair Claims Settlement Practices Act" by defining 26 specific acts that constitute unfair practices by insurers, such as misrepresenting policy facts, failing to promptly acknowledge claims, and not attempting to effectuate fair settlements. It includes significant changes such as raising the damage estimate threshold for a licensed appraiser's appraisal from $2,500 to $5,000 and extending the time frame for an insurer's appraiser to perform an initial appraisal from three to four business days. The bill also states that insurers forfeit the right to inspect a vehicle prior to repairs if they fail to inspect within the allotted time for initial or supplemental appraisals. These insertions aim to ensure fair and timely handling of claims by insurance companies.

Furthermore, the bill expands the definition of "fair market value" for vehicles deemed total losses and requires insurers to inform and obtain written consent from owners about salvage and reconstructed titles if the insurer does not retain the salvage. It also prohibits insurers from refusing to pay for necessary sublet services during auto repairs and from limiting or discounting repair costs based on the use of their preferred repair shops. The bill corrects a citation regarding salvage and reconstructed titles and states that it will take effect upon passage.

Statutes affected:
2210: 27-9.1-4