<?xml version='1.0' encoding='utf-8'?>
<regulation prefix="Regulation" num=".03" citation="COMAR 31.15.12.03" title_num="31" subtitle_num="15" chapter_num="12" heading="Duties of Insurer Following Determination of Total Loss of Motor Vehicle.">
  <paragraph num="A.">
    <text>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:</text>
    <paragraph num="(1)">
      <text>There is a good faith dispute as to the obligation of the insurer under the contract; or</text>
    </paragraph>
    <paragraph num="(2)">
      <text>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.</text>
    </paragraph>
  </paragraph>
  <paragraph num="B.">
    <text>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:</text>
    <paragraph num="(1)">
      <text>Make an offer of a cash settlement pursuant to Regulation .04 of this chapter; or</text>
    </paragraph>
    <paragraph num="(2)">
      <text>If authorized by the policy, replace the motor vehicle pursuant to Regulation .07 of this chapter.</text>
    </paragraph>
  </paragraph>
  <paragraph num="C.">
    <text>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:</text>
    <paragraph num="(1)">
      <text>30 days after receipt of notification of a claim; or</text>
    </paragraph>
    <paragraph num="(2)">
      <text>The time provided in the policy.</text>
    </paragraph>
  </paragraph>
  <paragraph num="D.">
    <text>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.</text>
  </paragraph>
</regulation>