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Proposed Bill Would Limit Auto Claims Investigation Period, Require Insurers To Make Loan Payments

 Tuesday, November 9, 2021

 Repairer Driven News

A committee of the Massachusetts Legislature has held a hearing on a bill that would limit the amount of time insurance companies have to investigate the cause of a loss, and would require the insurer to make payments for the vehicle while the investigation is ongoing.

The bill, H.1151, filed by state Rep. Joseph D. McKenna, a Republican representing the 18th Worcester district, would amend existing state law by adding a requirement that any investigations into the cause of a loss be concluded within 30 days of the occurrence of the event that caused the loss.

In addition, the investigating insurance company would be required to make any premium payments due to the financial institution holding title to the vehicle during the course of its investigation.

If the loss were determined to be fraudulent, the insurance company would be allowed to recover those payments from its insured.

Violations would be punishable by a fine of up to $10,000, to be determined by the state’s commissioner of insurance.
AutoLegislation & Regulation