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 fairly when liability is clear. It also specifies acts like refusing to pay claims without a reasonable investigation and attempting to settle for less than what is reasonable. The bill introduces changes to the law, including increasing the damage amount requiring a licensed appraiser's evaluation from $2,500 to $5,000 and extending the timeframe for an insurer's appraiser to perform an initial appraisal from three to four business days. Additionally, if an insurer's appraiser fails to inspect the vehicle within the time limits, the insurer forfeits the right to inspect before repairs, and negotiations will be limited to labor and parts prices.

The bill also includes provisions to prevent insurers from declaring a vehicle a total loss if the rebuild cost is less than seventy-five percent of its fair market value, with an expanded definition of "fair market value." It mandates that any vehicle value adjustments be itemized, fair, and reasonable, and requires written consent from vehicle owners for obtaining salvage and reconstructed titles if the insurer does not retain the salvage. Insurers are prohibited from refusing to pay for necessary sublet services at auto body repair shops and cannot limit or discount repair costs based on their own shop preferences. The threshold for a licensed appraiser's appraisal is increased, and a citation regarding salvage and reconstructed titles is corrected. The act would be effective upon passage.

Statutes affected:
7287: 27-9.1-4