NAIC Unfair Claims Settlement Practices Model Act (MDL-900) and Model Regulation (MDL-902)
Model Regulation section 8: automobile insurance total loss, repair, subrogation, storage and crash parts – NAIC Unfair Claims Settlement Practices Model Act (MDL-900) and Model Regulation (MDL-902)

NAIC Unfair Claims Settlement Practices Model Act (MDL-900) and Model Regulation (MDL-902) mdl902-s8h-j-storage-towing-betterment-crash-parts: Give notice before ending storage payments, pay reasonable towing, limit betterment deductions to measurable and documented items, and require identified crash parts of like kind and quality

What does mdl902-s8h-j-storage-towing-betterment-crash-parts require?

The insurer must give reasonable notice before terminating payment of storage charges, document the decision and allow reasonable time to move the vehicle; unless it named a specific towing company before the insured used another, it pays all reasonable towing charges regardless of the company used. Betterment may be deducted only where it reflects a measurable fall in market value because the vehicle was in poorer condition or already damaged, or the general overall condition considering age, with wear, tear and rust capped at one thousand dollars and missing parts capped at replacement cost; every deduction must be measurable, itemised, specified in dollars and documented, and no insured or claimant may be required to supply parts. Replacement crash parts (exterior sheet metal and plastic parts) manufactured after the rule's effective date must carry permanent non-removable manufacturer identification, accessible after installation where possible, and an insurer may require their use only where they match the original part in kind and quality (fit, quality and performance), taking account of any modification costs.

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