Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 400 - RULES GOVERNING UNFAIR CLAIM SETTLEMENT PRACTICES › Section 14VAC5-400-80 - Claims settlement standards applicable to automobile insurance

Current through Register Vol. 40, No. 24, July 15, 2024
A. Where liability
				is reasonably clear, an insurer shall not recommend that a third party claimant
				make a claim under its own policy solely to avoid paying a claim under the
				insured's policy .
B. An insurer
				shall not require a claimant to travel unreasonably either to inspect a
				replacement automobile, to obtain a repair estimate, or to have the automobile
				repaired at a specific repair shop.
C. An insurer shall include the insured's
				deductible, if any, in subrogation demands. Subrogation recoveries shall be
				shared on a proportionate basis with the insured, unless the deductible amount
				has been otherwise recovered. No deduction for expenses can be made from the
				deductible recovery unless an outside attorney is retained to collect such
				recovery. The deduction may then be for only a pro rata share of the allocated
				loss adjustment expense.
D. When an
				insurer prepares an estimate of the cost of automobile repairs, the estimate
				shall be an amount for which the damage may reasonably be expected to be
				satisfactorily repaired. The insurer shall give a copy of the estimate to the
				claimant and may furnish to the claimant the names of one or more conveniently
				located qualified repair shops. A total loss valuation shall be provided to the
				claimant upon request.
E. 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 itemized and specified as to dollar amount and shall be
				appropriate for the amount of deductions.
F. When an insurer elects to repair and the
				automobile is repaired in a repair shop designated by the insurer as a repair
				shop that will repair the automobile for the amount offered by the insurer, the
				insurer shall cause the damaged automobile to be restored to its condition
				prior to the loss at no additional cost to the claimant other than as stated in
				the policy and within a reasonable period of time.
G. An insurer shall provide reasonable notice
				to a claimant prior to termination of payment for automobile storage charges.
				The insurer shall provide reasonable time for the claimant to remove the
				automobile from storage prior to the termination of payment.
H. If towing is a result of a covered loss,
				unless the insurer has provided a claimant with the names of specific towing
				companies prior to the claimant's use of another towing company, the insurer
				shall pay all reasonable towing charges irrespective of the towing company used
				by the claimant.
I. Prior to
				termination of payment for transportation or rental reimbursement expenses, the
				insurer shall provide reasonable time for the claimant to receive payment for
				automobile repairs . In the event of a total loss, the insurer shall provide
				reasonable time for a claimant to receive payment for a replacement
				automobile.
Statutory Authority: §§
											12.1-13,
					 38.2-223, and
					 38.2-510 of the Code of
					 Virginia.