AN ACT RELATING TO INSURANCE -- UNFAIR CLAIMS SETTLEMENT PRACTICES ACT

HB 5572 amends the Unfair Claims Settlement Practices Act to require insurers to use standard industry software (like Mitchell's RMC) for vehicle damage appraisals and pay repair shops based on documented charges from that system. It directly affects car insurance claimants and auto body repair shops by guaranteeing consumers the right to choose their repair shop or rental car company (via "direction to pay" forms) and preventing insurers from arbitrarily discounting charges. Key provisions include mandating unaffiliated appraisals for damage over $2,500, requiring insurers to pay for manufacturer-recommended repair procedures, and banning insurers from using altered or incomplete appraisal systems. The bill aims to standardize fair compensation for repairs while giving consumers more control over their claims process.