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

This bill updates the state's Unfair Claims Settlement Practices Act to provide consumers with stronger protections against specific unfair behaviors by insurance companies. It directly affects policyholders, claimants, and auto body repair shops by explicitly defining a broader range of actions as unfair, such as delaying claim investigations, refusing to pay without a reasonable explanation, and coercing consumers into using specific rental car companies. Key provisions mandate that insurers must respond to claims within thirty days, conduct physical inspections for vehicles with damage over $2,500, and honor requests to pay directly to a customer's chosen repair shop or rental agency. Additionally, the legislation prohibits insurers from unilaterally modifying repair manuals or refusing to pay documented charges based on industry-standard software for auto body work.