31.15.12.03

.03 Duties of Insurer Following Determination of Total Loss of Motor Vehicle.

A. Scope. The deadlines set by §§B—D of this regulation do not apply to a claim for damage that results in the total loss of a motor vehicle if:

(1) There is a good faith dispute as to the obligation of the insurer under the contract; or

(2) There are factors beyond the control of the insurer that prevent the insurer from complying with the deadlines set by §§B—D of this regulation, including a vehicle that is limited in production, specialty in nature, or older than 10 model years at the time of the total loss.

B. First-Party Claimants—In General. Except as provided in §C of this regulation, within 10 business days after an insurer determines that a motor vehicle of a first-party claimant is a total loss, the insurer shall:

(1) Make an offer of a cash settlement pursuant to Regulation .04 of this chapter; or

(2) If authorized by the policy, replace the motor vehicle pursuant to Regulation .07 of this chapter.

C. First-Party Claimants—Unrecovered Theft Loss. In the case of an unrecovered theft loss of the motor vehicle of a first-party claimant, an insurer shall make an offer for the total loss within the later of:

(1) 30 days after receipt of notification of a claim; or

(2) The time provided in the policy.

D. Third-Party Claimants. Within 10 days after an insurer determines that a motor vehicle of a third-party is a total loss, the insurer shall make an offer of a cash settlement pursuant to Regulation .04 of this chapter.