The bill proposes amendments to the "Unfair Claims Settlement Practices Act," specifically targeting actions by insurers that would be considered unfair when handling claims. These actions include misrepresenting policy details, not promptly acknowledging claims, failing to offer fair settlements, and forcing insured parties to initiate lawsuits to receive due payments. The bill also addresses issues such as insurers not conducting reasonable investigations before refusing claims, delaying decisions on coverage after investigations, and attempting to settle for less than what is reasonably due to claimants.

Significant insertions to the bill focus on the settlement of auto insurance claims, prohibiting insurers from altering published auto repair manuals without consent, not fully utilizing manuals or systems for vehicle appraisals, and refusing to pay auto body shops for documented charges based on recognized software programs. The bill mandates acknowledgment and compensation for procedures deemed necessary by original equipment or paint manufacturers. It sets requirements for timely vehicle appraisals and inspections, with penalties for insurers who do not comply. The bill also redefines how a vehicle is considered a total loss and introduces a "consumer accessible fair market value" that must be VIN-specific and publicly available. It prohibits negotiations with unlicensed public adjusters and ensures that insurers cannot limit repair costs based on their preferred shop rates. The act will be effective upon passage.

Statutes affected:
2461: 27-9.1-4