ENROLLED
Page 1 of 2
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
ACT No. 1032
Regular Session, 2010
HOUSE BILL NO. 1011
BY REPRESENTATIVE HARRISON AND SENATOR THOMPSON
AN ACT1
To enact R.S. 22:1892(B)(5), relative to property and casualty insurance claims payment;2
to provide for the adjustment and settlement of first-party motor vehicle total losses;3
to provide a definition; and to provide for related matters.4
Be it enacted by the Legislature of Louisiana:5
Section 1. R.S. 22:1892(B)(5) is hereby enacted to read as follows: 6
ยง1892. Payment and adjustment of claims, policies other than life and health and7
accident; personal vehicle damage claims; extension of time to respond to claims8
during emergency or disaster; penalties; arson-related claims suspension9
* * *10
B.11
* * *12
(5) When an insurance policy provides for the adjustment and settlement of13
first-party motor vehicle total losses on the basis of actual cash value or replacement14
with another of like kind and quality, and the insurer elects a cash settlement based15
on the actual cost to purchase a comparable motor vehicle, such costs shall be16
derived by using one of the following:17
(a) A fair market value survey conducted using qualified retail automobile18
dealers in the local market area as resources. If there are no dealers in the local19
market area, the nearest reasonable market can be used.20
(b) The retail cost as determined from a generally recognized used motor21
vehicle industry source; such as, an electronic database, if the valuation documents22
generated by the database are provided to the first-party claimant, or a guidebook23
that is available to the general public. If the insured demonstrates, by presenting two24 ENROLLEDHB NO. 1011
Page 2 of 2
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
independent appraisals, based on measurable and discernable factors, including the1
vehicle's preloss condition, that the vehicle would have a higher cash value in the2
local market area than the value reflected in the source's database or the guidebook,3
the local market value shall be used in determining the actual cash value.4
(c) A qualified expert appraiser selected and agreed upon by the insured and5
insurer. The appraiser shall produce a written nonbinding appraisal establishing the6
actual cash value of the vehicle's preloss condition.7
(d) For the purposes of this Paragraph, local market area shall mean a8
reasonable distance surrounding the area where a motor vehicle is principally9
garaged, or the usual location of the vehicle covered by the policy.10
* * *11
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: