The bill amends the "Unfair Claims Settlement Practices Act" by specifying actions that constitute unfair practices by insurers, such as misrepresenting policy facts, failing to promptly acknowledge communications, and not attempting in good faith to settle claims. It introduces new language that prohibits insurers from refusing to honor a "direction to pay" executed by an insured or claimant, allowing direct payment of property damage benefits to a chosen restoration company, with certain conditions. The bill also addresses the use of published manuals for auto body repair appraisals and the acknowledgment of necessary procedures identified by manufacturers.

Further amendments include a forfeiture of the insurer's right to inspect a damaged vehicle if they do not perform timely appraisals, and a provision that a vehicle cannot be considered a total loss if the rebuild cost is less than seventy-five percent of its pre-accident fair market value. Additionally, the bill outlines the procedure for settling claims with a public adjuster involved, requiring insurers to issue separate checks for the adjuster's fee and the balance to the insured or other interested parties. The act will take effect on January 1, 2025.

Statutes affected:
2681  SUB A: 27-9.1-4
2681: 27-9.1-4