§431:10C-312  Payment of excise tax and
certificate of ownership fee.  (a)  When a replacement vehicle is provided
under section 431:10C-310 or section 431:10C-311, the insurer shall pay the
applicable general excise tax and ownership fee as follows:



(1)  If a cash settlement is provided, and if within
thirty days of the receipt of the settlement by the insured, the insured has
purchased a vehicle, the insurer shall reimburse the insured for the applicable
general excise tax and certificate of ownership fee incurred on account of the
purchase of the vehicle, but not exceeding the amount payable on account of the
value of the total loss vehicle.



(2)  If the insured purchases a vehicle with a market
value less than the amount of the settlement, then the insurer shall reimburse
only the amount of the applicable general excise tax and certificate of
ownership fee incurred by the insured.



(b)  If the insured cannot substantiate the
purchase and the payment of the taxes and fee, by submission to the insurer of
appropriate documentation within thirty-three days after the receipt of
settlement, the insurer shall not be required to reimburse the insured for the
taxes or fee.



(c)  In lieu of the reimbursement procedure set
out in subsection (a), the insurer may directly pay the required amounts of
general excise taxes and certificate of ownership fee to the insured at the
time of settlement.



(d)  Written notice of the payment procedure
outlined in this section shall be communicated to the insured at the time of
settlement, together with any form required by the insurer for applying for the
reimbursement. [L 1987, c 347, pt of §2]