The bill amends the "Unfair Claims Settlement Practices Act" by defining various unfair practices by insurers, such as misrepresenting policy facts, not promptly acknowledging claims, and not attempting to settle claims fairly. It includes changes to the law, such as increasing the damage threshold for requiring a licensed appraiser from $2,500 to $5,000 and extending the time 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 damaged vehicle if they fail to do so within the allotted time, and it limits negotiations to labor and parts prices unless the insurer provides objective evidence. Other changes address claim settlements, the use of appraisal manuals or systems, and the acknowledgment of necessary procedures identified by manufacturers.

Additionally, the bill specifies that a motor vehicle cannot be considered a total loss if the cost to rebuild is less than seventy-five percent of its pre-accident fair market value, which must be determined using a nationally recognized retail value compilation. Adjustments to the retail value of a totaled vehicle must be itemized and reasonable. Insurers must inform vehicle owners in writing about salvage and reconstructed title requirements if they do not retain the salvage and obtain written consent. The bill corrects a citation from chapter 1 to chapter 46 and prohibits insurers from refusing to pay for necessary sublet services during repairs. The bill aims to ensure fair insurance claim settlements for motor vehicle accidents and would take effect upon passage.

Statutes affected:
2210: 27-9.1-4