The bill amends the "Unfair Claims Settlement Practices Act" to redefine what constitutes an unfair claims practice 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. Additionally, it allows consumers to designate a vehicle as a total loss when the cost to repair falls between these two percentages.

The bill also requires insurers to compensate auto body repairers for procedures recommended by original equipment manufacturers (OEMs) or recognized collision repair industry programs, such as Alldata, Repairlogic, CCC Repair Methods, and I-Car, upon the initial request from the repairer.

Furthermore, the bill includes a provision that mandates insurers to perform an appraisal within three (3) business days after a request for an initial or supplemental appraisal. If the insurer fails to do so, it shall forfeit its right to contest the claim.

The changes are set to take effect upon passage of the bill.

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