Nevada Administrative Code › Chapter 686A - Insurance: Trade Practices and Frauds › UNFAIR PRACTICES › Standards Concerning Claims › Section 686A.680 - Standards applicable to insurers under automobile policies

Current through June 11, 2024
1. An insurer that adjusts and settles a
				claim for an automobile total loss shall use the method set forth in paragraph
				(a) or (b).
(a) The insurer may elect to offer
				a replacement automobile which is a specific comparison automobile available to
				the claimant, with all applicable taxes, license fees and other fees incident
				to transfer of evidence of ownership of the automobile paid, at no cost other
				than any deductible provided in the applicable policy. The insurer may prorate
				license fees and limit payment to the unused period of the fees. The offer and
				any rejection of the offer must be documented in the claim file.
(b) The insurer may elect to make a cash
				settlement based upon the cost, less any deductible provided in the applicable
				policy, to purchase a comparable automobile including all applicable taxes,
				license fees and other fees incident to transfer of evidence of ownership of a
				comparable automobile. The cost must be determined using one of the following
				valuation methods:
(1) The average of the cost
				of two or more comparable automobiles which :
(I) Are currently available or were available
				within the most previous 90 days in the local market area; or
(II) If not currently available or available
				within the most previous 90 days in the local market area, are currently or
				were available within any extended period or in any expanded market area, so
				long as the extension or expansion is no greater than necessary to identify two
				or more such automobiles;
(2) The average of two or more price
				quotations for a comparable automobile obtained by the insurer from two or more
				licensed dealers located within the local market area; or
(3) The value of a comparable automobile as
				determined by any source of statistically valid fair market values for
				automobiles if the method used by the source to determine the value:
(I) Gives primary consideration to the value
				of automobiles in a claimant's local market area and considers data for
				automobiles outside that area only if relevant data for a claimant's local
				market area is not available or is insufficient to produce a statistically
				valid fair market value;
(II) Uses
				a database or other data resource that is capable of producing statistically
				valid fair market values for at least 85 percent of all makes and models of
				automobiles for the most recent 15 model years, taking into account the value
				of all major options for such automobiles; and
(III) Produces a statistically valid fair
				market value for an automobile that is based on current data available from the
				area surrounding the location in which a claimant's automobile was principally
				garaged or on any adjustment to those parameters that is necessary to ensure
				statistical validity.
Except as otherwise provided in subsection 2, the amount of a
				  cash settlement must not be less than the lowest valuation obtained using a
				  valuation method set forth in subparagraph (1), (2) or (3), as adjusted by any
				  deductible, taxes, license fees and other fees.