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

HB 7866 raises the threshold for declaring a vehicle a total loss from 80% to 85% of its value, directly affecting insurance companies and vehicle owners during claims processing. The bill amends the Unfair Claims Settlement Practices Act to update this percentage standard, requiring insurers to consider a vehicle a total loss only when repair costs exceed 85% of its value. This change aims to provide clearer criteria for total loss determinations without altering other claim settlement practices. The bill was introduced to the House Corporations committee on February 27, 2026, and remains pending.