Regulation .03 Duties of Insurer Following Determination of Total Loss of Motor Vehicle.
Regulation .03 Duties of Insurer Following Determination of Total Loss of Motor Vehicle.LinkCopy Citation
A.
Scope. The deadlines set by §§B—D of this regulation do not apply to a claim for damage that results in the total loss of a motor vehicle if:
(1)
There is a good faith dispute as to the obligation of the insurer under the contract; or
(2)
There are factors beyond the control of the insurer that prevent the insurer from complying with the deadlines set by §§B—D of this regulation, including a vehicle that is limited in production, specialty in nature, or older than 10 model years at the time of the total loss.
B.
First-Party Claimants—In General. Except as provided in §C of this regulation, within 10 business days after an insurer determines that a motor vehicle of a first-party claimant is a total loss, the insurer shall:
(1)
Make an offer of a cash settlement pursuant to Regulation .04 of this chapter; or
(2)
If authorized by the policy, replace the motor vehicle pursuant to Regulation .07 of this chapter.
C.
First-Party Claimants—Unrecovered Theft Loss. In the case of an unrecovered theft loss of the motor vehicle of a first-party claimant, an insurer shall make an offer for the total loss within the later of:
(1)
30 days after receipt of notification of a claim; or
(2)
The time provided in the policy.
D.
Third-Party Claimants. Within 10 days after an insurer determines that a motor vehicle of a third-party is a total loss, the insurer shall make an offer of a cash settlement pursuant to Regulation .04 of this chapter.