§431:10C-311  Total loss motor vehicle
claims:  cash settlement.  (a)  When an insurer elects under section
431:10C-309 to offer the insured a cash settlement for a total loss motor
vehicle claim, the following shall apply:



(1)  The cash settlement shall be based upon the
retail value of the motor vehicle as determined from a source or sources which
are reflective of the market value of the total loss vehicle.



(2)  The use of dealer quotations (when the vehicle is
available at the quoting dealer's lot) and newspaper advertisements may be used
in lieu of the source generally used by the insurer, if the claim file reflects
that the vehicle was not quoted in the source generally used by the insurer or
the source was not reflective of the market value.  Dealer quotations and
newspaper advertisements shall not be considered sole sources reflective of
market values.  When dealer quotations are used, the vehicle identification
number shall be contained in the insured's claim file;



(3)  Estimates from at least three licensed dealers
may be used when vehicles are not quoted in the source usually used by the
insurer and are not available for replacement.  Dealer estimates shall take
into consideration the condition of the insured vehicle prior to the loss; and



(4)  The documentation of the determination of the
total loss vehicle market value shall be maintained in the insurer's claim
file.



(b)  If within thirty days of the receipt of
the settlement by the insured (i) the insured cannot purchase a comparable
vehicle of like kind and quality for the market value determined by the insurer
before applicable deductions, and (ii) the insured has located, but not
purchased, a comparable vehicle of like kind and quality in excess of such
market value, the following procedure shall apply:



(1)  The insurer shall locate a comparable vehicle of
like kind and quality for the insured for the market value determined by the
insurer at the time of settlement.  Any comparable vehicle shall be available
through licensed dealers;



(2)  The insurer shall either pay the insured the
difference between the market value before applicable deductions and the cost
of the comparable vehicle of like kind and quality which the insured has
located, or negotiate and effect the purchase of this vehicle for the insured;



(3)  The insurer may conclude the loss settlement as
provided for under the appraisal section of the insurance contract in force at
the time of loss.  This appraisal shall be considered as binding against both
parties, but shall not preclude or waive any other rights either party has
under the insurance contract or at common law; or



(4)  The insurer shall provide written notice to the
insured at the time of settlement that if within thirty days of the receipt of
the settlement by the insured, the insured cannot purchase a comparable vehicle
of like kind and quality for the market value determined by the insurer before
applicable deductions and the insured has located, but not purchased a
comparable vehicle of like kind and quality in excess of such market value, the
insurer shall reopen its claim file.



(c)  Deductions of the kind commonly referred
to as "get ready to go" and "dealer prep" or dealer
preparation charges are prohibited. [L 1987, c 347, pt of §2]