NAIC Unfair Claims Settlement Practices Model Act (MDL-900) and Model Regulation (MDL-902) mdl902-s8a-total-loss-methods: Settle first party automobile total losses by a comparable replacement vehicle or a cash settlement derived from an approved valuation method, with a thirty-five-day right of recourse

What does mdl902-s8a-total-loss-methods require?

Where the policy settles first party auto total losses at actual cash value or replacement of like kind and quality, the insurer must either offer a comparable replacement vehicle (same maker, same model year or newer, comparable body style, options and mileage, in condition at least as good, on offer at a licensed dealer reasonably near the insured's home), paying taxes, licence and transfer fees with the offer and any rejection documented, or pay cash equal to the cost of a comparable vehicle including those fees, derived from two or more comparable vehicles in the local market within the last ninety days, or in proximate areas including the nearest major metropolitan area, or from dealer quotations, or from a statistically valid source that weights the local market, covers at least eighty-five per cent of makes and models over fifteen model years with major options, and uses current data around the garaging location. If within thirty-five days of the claim draft the insured reports that a comparable vehicle cannot be bought for the market value, the insurer reopens the file and must locate a vehicle, pay the difference, offer a replacement or invoke appraisal, unless its settlement documentation identified a specific available comparable vehicle by identification number. A settlement that deviates from these methods must be supported by documentation of the vehicle's condition, with every deduction including salvage measurable, itemised and explained to the claimant.