§431:10C-313  Insurer practices regarding
loss of use, storage and towing, and betterment.  (a)  In motor vehicle
property damage liability claims in which liability is reasonably clear, the
insurer shall pay for the reasonable and necessary costs, in direct proportion
to the extent of its liability, incurred in the rental of another motor vehicle
as long as the loss of use claim is submitted and substantiated.



(b)  (1)  The insurer shall provide reasonable notice
to an insured prior to termination of payment for motor vehicle storage charges
and document the notice in the claim file.  Sufficient notice to the insured to
allow the insured to remove the vehicle from storage prior to the termination
of payment shall constitute reasonable notice.



(2)  The insurer shall pay any and all reasonable
towing charges, irrespective of the towing company used by the insured, unless
the insurer has provided the insured with the name of a specific towing company
prior to the insured's use of another towing company.  Any determination of
reasonable towing charges shall consider policy coverage as well as the cost
and distances involved in each claim.



(3)  An insurer shall make no advance charge
deductions for storage and towing charges unless excessive charges have
resulted from the insured's own actions.  The insurer shall itemize each
advance charge deduction and maintain in its claim file documentation of the
reasons and dollar amounts involved in each deduction.



(c)  Betterment deductions are allowable only
if the deductions:



(1)  Reflect a measurable decrease in market value
attributable to the poorer condition of, or prior damage to, the insured
vehicle;



(2)  Are for prior wear and tear, missing parts and
rust damage that is reflective of the general overall condition of the vehicle
considering its age; provided that any deductions for this type of damage shall
not exceed $500; and



(3)  Are measurable, itemized, specified as to dollar
amount, and documented in the insurer's claim file.



(d)  No insurer shall require the insured or
claimant to supply parts for replacement. [L 1987, c 347, pt of §2]