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 provisions related to the appraisal of motor vehicles, requiring that appraisals be performed by a licensed appraiser unaffiliated with the repair facility and setting time limits for initial and supplemental appraisals. The bill also adds provisions related to the designation of a motor vehicle as a total loss, including defining "fair market value" and allowing for a vehicle to be deemed 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. Additionally, the bill prohibits insurers from refusing to honor a "direction to pay" executed by an insured or claimant indicating that they want the insurance company to directly pay their motor vehicle replacement rental benefit to a rental car company of their choice.

This bill also increases the threshold for requiring an appraisal by a licensed appraiser for vehicle damage from $2,500 to $5,000. It corrects a citation regarding salvage and reconstructed titles and includes provisions related to negotiating or settling claims with unlicensed public adjusters, refusing to pay auto body repair shops for necessary sublet services, and the relationship between insurance companies and auto body repair facilities.

Statutes affected:
640: 27-9.1-4