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

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

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

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

(c)  Betterment deductions are allowable onlyif the deductions:

(1)  Reflect a measurable decrease in market valueattributable to the poorer condition of, or prior damage to, the insuredvehicle;

(2)  Are for prior wear and tear, missing parts andrust damage that is reflective of the general overall condition of the vehicleconsidering its age; provided that any deductions for this type of damage shallnot exceed $500; and

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

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