3 Colo. Code Regs. § 702-5-2-15-5

Current through Register Vol. 47, No. 24, December 25, 2024
Section 3 CCR 702-5-2-15-5 - Rules
A. Total Loss Claims
1. The insurer shall develop and maintain written procedures that will be consistently used when determining the value of a vehicle declared a total loss.
2. Claims files shall include the credible source used for valuation by vendor name and the methodology for determining the amount of the loss. Claims files shall document that the valuation considered unique characteristics of a total loss vehicle, such as classic status, unique finishes, mileage and/or, special accessories.
B. Payment for Temporary Replacement of Damaged Motor Vehicles
1. An insurer shall provide payment to a third-party claimant for a collision damage waiver required by a motor vehicle rental company when the third-party claimant does not have collision coverage, or coverage does not extend to a rental vehicle through his or her own motor vehicle insurance. The insurer may request the following:
a. Verification that the third-party claimant did not have collision coverage on the damaged vehicle, at the time of loss, or that the collision coverage on his/her automobile policy does not extend to rental vehicles; and
b. Verification that the Collision Damage Waiver was signed by the third-party claimant and collision coverage was secured.
2. Payments for third-party coverage for a replacement motor vehicle must begin the day of the loss if the vehicle is inoperable and coverage is confirmed and liability accepted or, if drivable, begin the date the vehicle is scheduled for repairs and left at the repair facility. The replacement motor vehicle must be of a comparable class and shall not be discontinued until:
a. Three (3) business days after payment for the total loss of the motor vehicle was mailed, via US Postal Service, to the last known address of the third-party claimant or after a reasonable settlement offer has been made and communicated in writing, which includes electronic mail delivery, in compliance with § 10-3-1104(1)(h), C.R.S.; or,
b. One (1) day after payment for the total loss of the motor vehicle was transmitted via overnight delivery to the last known address of the third-party claimant or directly to the financial account of the third-party claimant; or,
c. Payment is made directly to the entity repairing the motor vehicle and the repaired vehicle is returned to the third-party claimant or the third-party claimant has a reasonable opportunity to take possession of the vehicle from the repair facility.
3. The insurer shall issue payment within three (3) business days of the date of the third-party claimant accepts, in writing, the written settlement offer, and the insurer has received a transferrable title to the vehicle. If the insurer receives the transferrable title and the settlement acceptance on separate dates it shall issue payment within three (3) business days from the latest date of receipt.
4. An insurer shall not be required to pay for a replacement motor vehicle or any portion of such expense directly related to:
a. Delays by the third-party claimant; or
b. Delays by a repair facility selected by the third-party claimant unless the repair facility is a participating preferred repair shop.
C. Failure to comply with this regulation constitutes an unfair or deceptive act or practice in the business of insurance.

3 CCR 702-5-2-15-5

38 CR 17, September 10, 2015, effective 10/1/2015
38 CR 18, September 25, 2015, effective 10/15/2015
39 CR 01, January 10, 2016, effective 2/1/2016
39 CR 05, March 10, 2016, effective 4/1/2016
41 CR 01, January 10, 2018, effective 2/14/2018
40 CR 21, November 10, 2017, effective 4/1/2018
41 CR 19, October 10, 2018, effective 11/1/2018
42 CR 18, September 25, 2019, effective 1/1/2020
42 CR 23, December 10, 2019, effective 1/1/2020
44 CR 13, July 10, 2021, effective 6/3/2021
44 CR 08, April 25, 2021, effective 8/1/2021
45 CR 03, February 10, 2022, effective 3/2/2022
45 CR 22, November 25, 2022, effective 12/15/2022
46 CR 11, June 10, 2023, effective 4/27/2023