The bill proposes amendments to the "Unfair Claims Settlement Practices Act," specifically addressing the conduct of insurers in handling claims. It outlines various unfair practices, such as misrepresenting policy details, failing to acknowledge claims promptly, not attempting fair settlements, and forcing insured parties to sue for due amounts. The bill also targets unfair practices in auto insurance claims, prohibiting insurers from coercing consumers to use specific rental car companies, refusing to honor rental benefit payments, modifying appraisal manuals without consent, and failing to compensate auto body shops fairly. It mandates that appraisals for damages over $2,500 be conducted by licensed appraisers and sets time frames for appraisals. If an insurer's appraiser does not inspect a damaged vehicle within the specified time, the insurer loses the right to inspect before repairs.

Furthermore, the bill revises the criteria for designating a motor vehicle as a total loss, stating that a vehicle cannot be considered a total loss if the rebuild or reconstruction costs are less than seventy-five percent of its pre-accident fair market value. It expands the definition of "fair market value" and introduces "consumer accessible fair market value," which must be publicly available and VIN-specific. The bill also ensures that insurance companies cannot refuse to pay for necessary sublet services during repairs and cannot limit or discount reasonable repair costs if the insured chooses their own repair shop. The bill aims to protect consumers and auto body repair shops from unfair insurance practices and would take effect upon passage.

Statutes affected:
2461: 27-9.1-4