The bill amends the "Unfair Claims Settlement Practices Act" to redefine certain unfair claims practices by insurers. It establishes that an insurer cannot designate a motor vehicle as a total loss if the cost to rebuild or reconstruct the vehicle to its pre-accident condition is less than seventy-five percent (75%) to eighty percent (80%) of its fair market value immediately preceding the damage. The consumer may designate the motor vehicle a total loss when the seventy-five percent (75%) threshold is met but is less than eighty percent (80%) of the fair market value.

Additionally, the bill mandates that insurers must compensate auto body repairers for procedures recommended by original equipment manufacturers (OEMs) or recognized collision repair industry programs, including Alldata, Repairlogic, CCC Repair Methods, and I-Car, upon the initial request from the repairer.

The bill also includes provisions requiring insurers to perform appraisals within three (3) business days after a request for an initial or supplemental appraisal. If the insurer fails to do so, it forfeits its right to contest the claim.

The act is set to take effect upon passage.

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