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

SB 877 amends the Unfair Claims Settlement Practices Act to define additional actions as unfair practices by insurance companies. It requires insurers to honor a consumer's choice for direct payment of motor vehicle replacement rental benefits to a rental car company and repair benefits to an auto body shop. The bill also mandates that insurers compensate auto body shops based on industry-recognized software and manufacturer-recommended procedures, and requires physical appraisals by licensed, unaffiliated appraisers for vehicle damage exceeding $2,500. These changes directly affect insurance companies, policyholders, auto body shops, and rental car companies involved in vehicle damage claims.