Nebraska Administrative Code › Topic - INSURANCE, DEPARTMENT OF › Title 210 - NEBRASKA DEPARTMENT OF INSURANCE › Chapter 60 - UNFAIR PROPERTY AND CASUALTY SETTLEMENT PRACTICES RULE › Section 210-60-009 - Standards for prompt, fair and equitable settlements applicable to losses involving automobiles

Current through June 17, 2024
009.01 Where
				liability and damages are reasonably clear, insurers shall not recommend that
				third party claimants make claim under their own policies solely to avoid,
				delay or defer paying claims under such insurer's policy.
009.02 Insurers shall not require a claimant
				to travel an unreasonable distance either to inspect a replacement automobile,
				to obtain a repair estimate or to have the automobile repaired at a specific
				repair shop.
009.03 Insurers shall
				include the first party claimant's deductible, if any, in subrogation demands,
				unless requested not to by the first party claimant. Subrogation recoveries
				shall be shared on a proportionate basis no less than yearly with the first
				party claimant, unless the first party claimant has otherwise recovered the
				deductible amount. No deduction for expenses can be made from the deductible
				recovery unless an outside attorney is retained to pursue such collection and
				then the only expenses shared, on a pro rata basis, shall be legal
				expenses.
009.04 If the insurer
				designates any repairer owned or affiliated with the insurer, it shall assure
				that the repairs are performed in a skillful manner and shall comply with this
				subsection. If non-total losses are settled on the basis of a written estimate
				prepared by or for the insurer, the insurer shall supply the claimant a copy of
				the estimate upon which the settlement is based. The estimate prepared by or
				for the insurer shall be reasonable, in accordance with applicable policy
				provisions, and of an amount which will allow for repairs to be made in a
				skillful manner. If the claimant subsequently claims, based upon a written
				estimate which was obtained, that necessary repairs will exceed the written
				estimate prepared by or for the insurer, the insurer may (1) pay the difference
				between the written estimate and a higher estimate obtained by the claimant, or
				(2) promptly provide the claimant with the name of at least one quality repair
				shop that will make the repairs for the amount of the written estimate, or (3)
				contact the repair shop of the claimant's choice for repair, to negotiate the
				amount of the written estimate for repair. The insurer shall maintain
				documentation of all such communications.
009.05 When the amount claimed is reduced
				because of betterment or depreciation, all information for such reduction shall
				be contained in the claim file. Such deductions shall be measurable,
				discernable, itemized and specified as to dollar amount and shall be
				appropriate for the amount of deductions.
009.06 When the insurer elects to repair and
				designates a specific repair shop for automobile repairs, the insurer shall
				cause the damaged automobile to be restored to its condition prior to the loss
				within a reasonable period of time, at no additional cost to the first party
				claimant other than as stated in the policy.
009.07 Storage and Towing
The insurer shall provide reasonable notice to the claimant
				  prior to termination of payment for automobile storage charges and shall
				  document same as is required by section 004. Such insurer shall provide
				  reasonable time for removal of the vehicle from storage prior to the
				  termination of payment. Unless the insurer has provided the first party
				  claimant with the name of a specific towing company prior to the use of another
				  towing company, the insurer shall pay any and all reasonable towing charges
				  irrespective of the towing company used.