West Virginia Code of State Rules › Agency 114 - Insurance Commission › Title 114 - LEGISLATIVE RULE INSURANCE COMMISSIONER › Series 114-14 - Unfair Trade Practices › Section 114-14-7 - Standards For Prompt, Fair And Equitable Settlements Applicable To Automobile Insurance

Current through Register Vol. XLI, No. 28, July 12, 2024
7.1. Applicability.
				-- This section is applicable to claims arising under motor vehicle collision and
				comprehensive coverage. The provisions of section 6 of these rules are applicable to
				these claims except to the extent that such provisions are inconsistent with the
				specific provisions of this section.
7.2. Definition of terms. -- The following shall
				govern the construction of the terms used in this section:
a. "Agreed price" means the amount agreed to by
				the insurer and the insured, or their representatives, as to the reasonable cost to
				repair damages to the motor vehicle resulting from the loss, without considering any
				deductible or other deductions;
b.
				"Designated representative" means a person designated by the insured to represent
				him or her in negotiations with the insurer in an attempt to settle the claim. The
				designated representative may be a member of the insured's immediate family or any
				other person named by the insured who may legally act on his or her behalf and who
				so acts without compensation of any kind;
c. "Motor vehicle" has the meaning ascribed in
				subsection (b), section one, article one, chapter seventeen-a of the Code of West
				Virginia of 1931, as amended;
d.
				"Official used car guide" means a valuation source that has been approved by the
				Commissioner for setting the minimum value of a motor vehicle which is the subject
				of a total loss claim. In order to be approved by the Commissioner as an official
				used car guide, the valuation source must meet the following criteria:
1. All valuation sources must:
A. Produce statistically valid fair market values
				based on current data available primarily 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;
B. Produce values for at least eighty-five percent
				(85%) of all makes and models of private passenger automobiles for the last fifteen
				(15) model years and include all major options. A sufficient number of vehicles
				shall be used for each year, make and model to represent a cross-section sufficient
				to determine fair market values;
C.
				Produce for examination by the Commissioner, at the time the request for approval is
				made or as soon thereafter as practicable, the source of the data in a manner that
				can be verified by the Commissioner;
D.
				Make available for examination by the Commissioner, at the time the request for
				approval is made or as soon thereafter as practicable, any contracts or agreements
				between the valuation source and insurers, which the valuation source may assert is
				a trade secret pursuant to W. Va. Code §
												47-22-1(d);
				and
E. Produce for examination any other
				information determined by the Commissioner to be helpful or necessary in determining
				the statistical validity of the values produced by the valuation source, or
				otherwise bearing on the integrity of the valuation source, including the existence
				of and resolution of consumer complaints based upon total loss valuations performed
				by the source. If the information meets the definition of trade secret pursuant to
				W. Va. Code §
												47-22-1(d),
				then the valuation source may make available for examination by the Commissioner,
				without filing the same, any information requested pursuant to this subparagraph. If
				the information meets the definition of trade secret pursuant to W. Va. Code §
												47-22-1(d)
				and, after having been made available for examination by the Commissioner, the
				Commissioner determines that the information pertains to the existence of or
				resolution of consumer complaints, the valuation source shall propose a reasonable
				method for protection of the information.
2. A valuation source that is other than a
				valuation manual, including a computerized database, must meet the criteria set
				forth in subparagraphs A, B, C, D and E of paragraph one of this subdivision, and in
				addition must:
A. Give primary consideration to
				the values of vehicles in the local market area but if necessary to obtain a
				reasonable cross-section of the market, may consider vehicles in the next closest
				area;
B. Rely upon values of vehicles
				that are currently available or were available within ninety days from the date of
				loss for all vehicles and apply appropriate standards of comparability;
C. Rely upon values derived primarily from
				verifiable data or inventory from licensed dealers which have minimum sales of one
				hundred motor vehicles per year in the local market area, for vehicles of five model
				years or less of age;
D. 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; and
E. Clearly indicate and
				describe the condition at which the vehicle is being valued, if the valuation source
				uses several price ranges for the same model vehicle depending on the condition of
				the vehicle. Documentation of the condition of the insured vehicle must be made a
				part of the written valuation. Deductions made for the condition of the insured
				vehicle must be reasonably based on a physical attribute that has the effect of
				decreasing the vehicle's value.
e. "Substantially similar vehicle" means a motor
				vehicle of the same make, model, year and substantially the same condition,
				including all major options of the insured vehicle. Mileage may not exceed that of
				the insured vehicle by more than 4,000 miles unless mutually acceptable to both the
				insurer and the insured.