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

This bill amends the Unfair Claims Settlement Practices Act to raise the threshold for declaring a vehicle a total loss from 80% to 85% of its actual cash value. The legislation also adds specific provisions requiring insurers to honor consumer requests to pay directly to chosen rental car companies, auto body shops, and restoration companies up to $5,000. Additionally, the bill mandates that insurers use complete, industry-recognized repair manuals and software systems when assessing vehicle damage and requires licensed appraisers for vehicles with damage exceeding $2,500. These changes directly affect insurance companies, policyholders, and repair facilities by establishing clearer standards for claims handling and vehicle repair processes.