Oregon Administrative Rules › Chapter 836 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, INSURANCE REGULATION › Division 80 - TRADE PRACTICES › Section 836-080-0240 - Standards for Prompt and Fair Total Loss Settlements - Automobile Insurance

Current through Register Vol. 63, No. 7, July 1, 2024
(1) When
			 an automobile insurance policy provides for the adjustment and settlement of
			 collision or comprehensive coverage total losses on the basis of actual cash
			 value or replacement with another comparable automobile or one of like kind and
			 quality, the insurer shall adjust and settle the claim as provided in this
			 rule.
(2) The insurer may elect to
			 offer a replacement automobile that is at least comparable to the insured
			 automobile. A replacement automobile is at least comparable if it is the same
			 make, is of the same or a newer year, is of a similar body style, has similar
			 options and mileage as the insured automobile, is in as good or better overall
			 condition and is available for inspection within a reasonable distance of the
			 insured's residence. The insurer shall pay all applicable taxes, license fees
			 and other fees incident to the transfer of evidence of ownership of the
			 automobile at no cost other than any deductible provided in the policy. The
			 offer and any rejection thereof must be documented in the claim file.
(3) The insurer may elect to make a cash
			 settlement, less any deductible provided in the policy, but including all
			 applicable taxes, license fees and other fees incident to transfer of ownership
			 of another comparable automobile. When an insurer makes a cash settlement, the
			 insurer shall furnish the insured copies of the information used by the insurer
			 for the purpose of determining the amount of the cash settlement. The insurer
			 shall comply with the provisions of the Uniform Electronic Transactions Act
			 (ORS 84.001 to
			 84.061) and ORS
			 84.070 if the insurer provides
			 this information electronically. If the information includes documentation of a
			 specific and comparable automobile that the insurer intends to rely upon to
			 preclude reopening the claim file under section (6) of this rule, the insurer
			 shall prominently disclose that intention. The value of the automobile for
			 purposes of a cash settlement may be based upon one of the following standards:
(a) A valuation obtained from a computerized
			 database source that produces statistically valid and fair market values for
			 automobiles, on the basis of the following criteria:
(A) The source shall produce values for at
			 least 85 percent of all makes and models of private passenger automobiles for
			 the last 15 model years;
(B) The
			 source shall rely upon values of vehicles that are currently available or were
			 available within the last 90 days from the date of loss for all vehicles and
			 shall apply appropriate standards of comparability;
(C) For all vehicles of five model years or
			 less of age, the values must be derived primarily from verifiable data or
			 inventory from licensed dealers;
(D) The source shall monitor the average
			 retail price of private passenger automobiles when there is insufficient data
			 or inventory from licensed dealers to ensure statistically valid market area
			 values;
(E) The source shall give
			 primary consideration to the values of vehicles in the local market area and
			 may consider data on vehicles outside the area; and
(F) The source shall produce fair market
			 values based on current data available from the area surrounding the location
			 where the insured vehicle was principally garaged or a necessary expansion of
			 parameters, such as time and area, to assure statistical validity.