Alaska Administrative Code › Title 3 - Commerce, Community, and Economic Development › Part 2 - Division of Insurance › Chapter 26 - Trade Practices › Article 1 - Unfair Claims Settlement Acts or Practices › 3 AAC 26.080 - Additional standards for prompt, fair, and equitable settlements of motor vehicle claims

Current through May 31, 2024
(a) A person transacting a business of
				  insurance who participates in the investigation, adjustment, negotiation, or
				  settlement of a first-party or third-party motor vehicle claim shall
(1) apply one of the following settlement
				  methods if coverage provides for the adjustment of a motor vehicle total loss
				  on the basis of actual cash value or replacement with a vehicle of like kind
				  and quality:
(A) offer a comparable and
				  available replacement motor vehicle, with all applicable taxes, license fees,
				  destination or delivery charges, and other fees incident to transfer of
				  ownership of the motor vehicle paid, at no cost to the claimant other than the
				  deductible amount, if any, as stated in the coverage; the offer of a
				  replacement motor vehicle shall be made in writing ifrejected by the claimant;
				  or
(B) make a cash settlement based
				  upon the actual cost to purchase a comparable motor vehicle, including all
				  applicable taxes, license fees, destination or delivery charges, and other fees
				  incident to transfer of ownership, Jess the deductible amount, if any, as
				  stated in the coverage; the cost shall be determined by
(i) the cost of a comparable motor vehicle in
				  the local market area to the claimant, if that motor vehicle is available in
				  that area or was available during the last 90 days;
(ii) the average of two or more cost
				  quotations obtained for a comparable motor vehicle from two or more licensed
				  dealers located within the local market area, if a comparable motor vehicle is
				  not available in that area; if quotes from two or more licensed dealers are not
				  available from the local market area, the search area may be expanded to areas
				  surrounding the local market area in 25-mile increments until two quotes are
				  obtained;
(iii) a computerized
				  database valuation service that produces statistically valid fair market values
				  under (i) of this section;
(iv)
				  the average retail value of a comparable motor vehicle, ifthat value is
				  obtained from two industry sources published on a regular basis, at least once
				  every two months, that contain the average retail, wholesale, and finance
				  values for all makes and models for at least each of the last five model years,
				  as well as a listing for all major options; cost may be determined under this
				  subsubparagraph only if (i) - (iii) of this subparagraph do not identify any
				  comparable motor vehicles, and only with the consent of the claimant; or
(v) the cost of a comparable motor
				  vehicle using a basis that is allowable under the coverage, if supported by
				  documentation in the claim fi le and fully explained to the claimant; cost may
				  be determined under this subsubparagraph only if (i) - (iv) of this
				  subparagraph do not identify any comparable motor
				  vehicles;