The bill proposes amendments to the "Unfair Claims Settlement Practices Act," specifically targeting actions by insurers that would be considered unfair when handling claims. It outlines various prohibited practices such as misrepresenting policy details, not promptly acknowledging claims, failing to attempt fair settlements, and forcing insured parties to sue for rightful amounts. The bill also addresses the need for reasonable investigation before refusing to pay claims, timely affirmation or denial of coverage after investigation, and prohibits attempts to settle for less than what is reasonably due.

Significant insertions to the bill focus on the settlement of auto insurance claims, including the prohibition of insurers from altering published auto repair manuals without consent, the requirement to use manuals or systems in full for vehicle appraisals, and the obligation to compensate 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, sets timelines for vehicle appraisals and inspections, and outlines penalties for insurers who do not comply. Additionally, the bill redefines when a vehicle is considered a total loss and introduces the concept of "consumer accessible fair market value" for determining a vehicle's worth. It ensures that insurers cannot limit repair costs if an insured chooses their own repair shop. The act will be effective upon passage.

Statutes affected:
7605: 27-9.1-4