The bill proposes amendments to the "Unfair Claims Settlement Practices Act," specifically addressing the conduct of insurers in handling claims and the process of designating a motor vehicle as a total loss. It outlines various unfair practices, such as misrepresenting policy facts, failing to acknowledge claims promptly, not attempting fair settlements, and coercing insured parties to use specific rental car companies or auto body shops. The bill also mandates that appraisals for auto damages over $2,500 be conducted by licensed appraisers and sets time frames for these appraisals. If an insurer's appraiser does not inspect a damaged vehicle within the set time, the insurer loses the right to inspect before repairs, and negotiations are limited to labor and parts prices.

The bill introduces new legal language defining "fair market value" and establishes that a vehicle cannot be considered a total loss if the cost to rebuild or reconstruct is less than seventy-five percent of its fair market value prior to the accident. It also introduces the concept of a "consumer accessible fair market value," which must be publicly available and reflect the vehicle's unique characteristics. Insurers are required to provide written notice to the owner about the requirements for obtaining salvage and reconstructed titles, and must obtain the owner's written consent. The act is intended to take effect upon passage, aiming to provide a transparent and accessible method for determining the value of damaged or totaled vehicles for both the insurance industry and consumers.

Statutes affected:
7605: 27-9.1-4