The bill amends Section 27-9.1-4 of the "Unfair Claims Settlement Practices Act" to redefine 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-five percent (85%) of its fair market value. Additionally, the bill allows consumers to designate the vehicle as a total loss when the cost meets the seventy-five percent (75%) threshold but is less than eighty-five percent (85%) of the fair market value. The bill modifies the existing language regarding the percentage threshold for total loss designation, changing it from eighty percent (80%) to eighty-five percent (85%). The act will take effect upon passage.

Statutes affected:
7866: 27-9.1-4