Corporations

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.

Provides that motor vehicle rental companies be entitled to establish non-liability for toll violations, administrative fees, and fines by providing a rental or lease agreement as prima facie evidence that a lessee was the vehicle operator.

This bill amends the Unfair Claims Settlement Practices Act to raise the threshold for declaring a vehicle a total loss from 80% to 85% of its actual cash value. The legislation also adds specific provisions requiring insurers to honor consumer requests to pay directly to chosen rental car companies, auto body shops, and restoration companies up to $5,000. Additionally, the bill mandates that insurers use complete, industry-recognized repair manuals and software systems when assessing vehicle damage and requires licensed appraisers for vehicles with damage exceeding $2,500. These changes directly affect insurance companies, policyholders, and repair facilities by establishing clearer standards for claims handling and vehicle repair processes.

Provides that motor vehicle rental companies be entitled to establish non-liability for toll violations, administrative fees, registration penalties, and fines by providing a rental or lease agreement as prima facie evidence against a lessee.

Requires all public utilities to maintain a customer service facility within the state to perform services such as addressing customer inquiries and accepting bill payments.