This bill amends the Unfair Claims Settlement Practices Act to define "unfair claims practices" and outline specific acts that constitute unfair claims practices by an insurer. The bill adds new language that requires insurers to provide contact information of their direct supervisor upon request, provide all contact information including an email address in correspondence acknowledging an attorney's letter of representation, and notify claimants of the reassignment of their claim to another adjuster within twelve business days. The bill also adds language prohibiting insurers from engaging in acts of intimidation, coercion, threat, or misrepresentation of consumer rights related to rental car services. Additionally, the bill adds language requiring insurers to honor a "direction to pay" executed by an insured or claimant indicating their choice of rental car company for motor vehicle replacement services.

The bill also adds language requiring insurers to compensate auto body shops for documented charges using industry-recognized software programs or systems for paint, body, and refinishing materials. It also adds language requiring insurers to comply with certain requirements related to appraisals of damaged motor vehicles, including having an appraisal performed by a licensed appraiser unaffiliated with the repair facility and performing a physical inspection of the damaged vehicle. The bill also adds language requiring insurers to perform an initial appraisal within three business days of a request from an auto body repair shop and a supplemental appraisal inspection within four business days of a request. Finally, the bill adds language specifying that a motor vehicle cannot be designated a total loss if the cost to rebuild or reconstruct it to its pre-accident condition is less than 75% of its fair market value.

Statutes affected:
5418  as amended: 27-9.1-4
5418: 27-9.1-4