Section Ins 1002.15 - Determining Amount of Motor Vehicle Total Loss Claims(a) In adjusting motor vehicle total loss property damage liability and collision and comprehensive damage claims for actual cash value, insurers shall determine total losses consistent with the RSA 261:22, VI standards and settlements based upon the motor vehicle's fair market value using one of the following methods: (1) The fair market value derived from the application of a methodology that the department accepts as a statistically valid method of establishing fair market value in the local market area; or(2) The fair market value derived from documented sales costs of no fewer than 2 motor vehicles of the same make, model, and year as the total loss motor vehicle that have occurred within the previous 90 days within the local market area. If documented sales costs information of a motor vehicle of the same make, model, and year as the total loss motor vehicle is unavailable, then the insurer shall use: a. Documented sales costs of no fewer than 2 motor vehicles of like, kind, and quality that have occurred within the previous 90 days within the local market area; orb. An average sales price derived from written quotations for a motor vehicle that is the same make, model, and year as the total loss motor vehicle, obtained by the insurer from at least 2 different licensed dealerships located within the local market area, that engage in the buying and selling of motor vehicles of like kind and quality in the ordinary course of their business.(b) The following deviations from the valuation methods in (a)(1) through (a)(2) shall be permitted: (1) For construction equipment as defined in RSA 259:42 and commercial motor vehicles as defined in RSA 259:12-e, data may be collected from outside the local market area but only to the extent necessary to obtain sufficient data as required in (a)(1) through (a)(2) above; and(2) If the insurer can demonstrate that the motor vehicle is a make or model vehicle not customarily found in the local market area, data may be collected from outside the local market area but only to the extent necessary to obtain sufficient data as required in (a)(1) through (a)(2) above.(c) If the insured or claimant disagrees with the value derived from (a) through (b) above and can demonstrate that disagreement by presenting to the insurer, within 20 days of receipt of the settlement payment, evidence from 2 reliable sources that the motor vehicle would have a higher fair market value in the local market area or deviation under (b) than the settlement payment, then the insurer shall recalculate a new fair market value considering this reliable evidence in determining a revised total loss settlement. Reliable evidence shall be limited to the sources listed in (a)(2) or deviation under (b). However, the reliable evidence right of the insured or claimant shall not apply if the insurer included in its documentation at the time of settlement a written notification of the availability and location in the local market area of a specified and comparable vehicle of the same manufacturer, same year, similar body style, and similar options, in as good or better condition as the total loss vehicle, which could have been purchased for an amount equal or less than the fair market value of the total loss vehicle as determined by the insurer. The documentation shall include the vehicle identification number.(d) In conjunction with a total loss settlement offer, the insurer shall provide to the insured or claimant a report which explains the basis for the valuation underlying the offer.(e) Fair market value as determined in (a)(1) through (2) above shall be adjusted to reflect motor vehicle condition, mileage, accessories, and options. Insurers shall consider usual and customary documentary preparation fees in determining fair market value.(f) The insured or claimant has the right to a rental for at least the applicable insurance policy period for insureds or 5 business days after the insurer makes an offer consistent with RSA 417:4, XV(a)(4), whichever is earlier.(g) If the insured or claimant chooses to keep the motor vehicle, the settlement payment shall be the difference between the total loss value as determined in (a) through (e) above and the salvage value for a motor vehicle of like, kind, and quality. Salvage value shall be calculated based on the salvage value available in the northeast of the United States or upon the salvage value available to the insurer from any salvage facility that is utilized by the insurer in the normal course of the insurer's business. Any costs that the insurer would have incurred for storage or transportation to any salvage facility shall be deducted from the salvage value.(h) The methodology required by (a)(1) above shall be developed and submitted according to the following: (1) In order for a methodology to be acceptable, the insurer, or vendor on behalf of the insurer, shall submit to the department a description of its methodology or model accompanied by supporting details. Supporting details shall include a discussion of how the valuation process or model is designed and an analytical or statistical validation of the assumptions, parameters, data elements, and results of the process or model. Any methodology that is not analytically or statistically valid shall be rejected;(2) The department shall publish a list annually, at the beginning of the calendar year, of accepted valuation guides and methodologies. Insurers shall be required to use one of the department's accepted methodologies;(3) If there are any changes made to the process or methodology provided to the department pursuant to (a)(1) above, the insurer or vendor shall provide the department with details as to the changes being made so that the department can determine whether the process or method shall remain on the accepted list; and(4) Information submitted to the department pursuant to this section shall be: a. Considered confidential and commercial information under RSA 91-A:5, not subject to disclosure; andb. Treated as confidential by the commissioner, pursuant to RSA 400-A:25.N.H. Admin. Code § Ins 1002.15
Amended by Volume XXXV Number 45, Filed November 12, 2015, Proposed by #10962, Effective 10/26/2015, Expires 10/26/2025.Amended by Volume XLI Number 10, Filed March 11, 2021, Proposed by #13173, Effective 4/26/2021, Expires 4/26/2031.