The bill amends the "Unfair Claims Settlement Practices Act" to redefine certain unfair claims practices by insurers, particularly regarding the designation of a motor vehicle as a total loss. It establishes that an insurer cannot classify a vehicle as a total loss if the cost to repair it is less than seventy-five percent (75%) to eighty percent (80%) of its fair market value prior to the damage. Additionally, it allows consumers to designate a vehicle as a total loss when the seventy-five percent threshold is met but does not exceed the eighty percent mark.

The bill also mandates that insurers compensate auto body repairers for following procedures recommended by original equipment manufacturers (OEMs) or recognized collision repair industry programs, such as Alldata, Repairlogic, CCC Repair Methods, and I-Car. This includes ensuring that documented charges for necessary sublet services incurred during the repair process are honored. The act is set to take effect upon passage.

Statutes affected:
902: 27-9.1-4
902  SUB A: 27-9.1-4