Section 45.25.200 - Payment and approval of claims(a) A manufacturer shall pay a new motor vehicle dealer for all warranty work. The manufacturer may not deny a claim for warranty work to resolve a condition discovered and properly repaired by the dealer during the course of a separate repair, if the dealer provides the required documentation demonstrating the need for the repair. A manufacturer shall pay the new motor vehicle dealer for the approved warranty repairs in accordance with the schedule of compensation that applies to the repairs when the new motor vehicle dealer makes the repairs.(b) A new motor vehicle dealer shall submit a claim for warranty work to the manufacturer within 90 days after the new motor vehicle dealer completes the work on the new motor vehicle. The new motor vehicle dealer shall submit the claim in the manner that the manufacturer requires.(c) Within 30 days after the manufacturer receives a claim from a new motor vehicle dealer under (b) of this section, the manufacturer shall approve or disapprove the claim in writing or electronically. If a manufacturer does not disapprove a claim as required by this subsection, the claim is considered approved. The manufacturer shall pay the claim within 30 days after the approval of the claim.(d) If a manufacturer disapproves a claim that the new motor vehicle dealer submits under (b) of this section, a manufacturer shall notify the new motor vehicle dealer in writing or electronically and shall state the reasons for disapproving the claim. A new motor vehicle dealer may correct and resubmit the claim within 30 days after the new motor vehicle dealer receives the written or electronic notice that the manufacturer disapproved the claim.(e) A manufacturer may not initiate or conduct an audit to determine the validity of paid claims for new motor vehicle dealer warranty work unless the manufacturer initiates the audit within one year after the payment of the claim. The manufacturer may not perform more than one audit in a calendar year to determine the validity of paid claims for new motor vehicle dealer warranty work.(f) A manufacturer may not initiate or conduct an audit to determine the validity of paid incentive claims unless the manufacturer initiates the audit within one year after the payment of the claim or the conclusion of the incentive program, whichever event occurs later. The manufacturer may not perform more than one audit in a calendar year to determine the validity of paid incentive claims.(g) Notwithstanding the limitations under (e) and (f) of this section, if a manufacturer reasonably suspects fraud, the manufacturer may audit a dealer for fraudulent claims during any period in which an action for fraud may be commenced under applicable state law.Added by SLA 2018, ch. 50,sec. 12, eff. 9/30/2018.