With so much legislative and regulatory activity each year, property and casualty insurers can always count on plenty of tracking and implementation issues. Some of the perennial topics that are addressed and find their way to enactment or adoption are those impacting claims and trade practices—and 2011 has been no exception.
A quick look at some total-loss developments this year
Certainly an area of continuing interest in claims processing is total-loss settlements. Rhode Island's HB 5894, effective Oct. 1, 2011, deletes the current exemption from sales tax of proceeds applicable to total-loss motor-vehicle insurance settlements. After that date, total-loss claimants will have to pay sales tax on the full value of replacement vehicles. Insurers are directed in Bulletin 2011-04, as amended, to include the state sales tax, currently set at 7 percent, in calculations of total-loss claim payments.
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