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

SB 3105 expands the definition of unfair claims practices under the state's Insurance Code to provide clearer protections for policyholders and claimants. The bill specifically targets insurance companies by adding numerous prohibited actions, such as delaying claim investigations, refusing to pay without a reasonable review, and misleading consumers about coverage limits or deadlines. It also introduces strict timelines for insurers to respond to claims and conduct appraisals, particularly for vehicle damage exceeding $2,500, and mandates that insurers honor requests to pay directly to a consumer's chosen rental car company or auto body shop. By codifying these standards, the legislation aims to ensure that insurance providers handle claims fairly and transparently while giving consumers more control over their repair and replacement options.