11 NCAC 04 .0417 DRIVE-IN CLAIM SERVICE FACILITIES

No insurer shall require any claimant to use a drive-in claim service operated by the insurer. The claimant's voluntary
utilization of a drive-in claim service shall not prejudice the right of either party to obtain independent appraisals and
negotiate settlement on the basis of such appraisals.

History Note: Authority G.S. 58-2-40; 58-63-65;
Eff. December 15, 1979.

11 NCAC 04 .0419 MOTOR VEHICLE REPAIR ESTIMATES

The commissioner shall consider as prima facie violative of G.S. 58-63-15(11) the failure by an insurer to adhere to
the following procedures concerning repair estimates on covered motor vehicle damage claims submitted when such
failure is so frequent as to indicate a general business practice:
(1) If the insurer requires the claimant to obtain more than two estimates of property damage, the cost,
if any, of such additional estimates shall be borne by the insurer.
(2) No insurer shall refuse to inspect the damaged vehicle if a personal inspection is requested by the
claimant. However, if the damaged vehicle is situated other than where it is normally used or cannot
easily be moved, the insurer may satisfy the requirements of this Section by having a competent l o c a l
appraiser inspect the damaged vehicle.
(3) When the insurer elects to have the claimant's property repaired, the insurer shall, if so requested by
the claimant, furnish the claimant with a legible front and back copy of its estimate. This estimate
shall contain the name and address of the insurer and, if the estimate was prepared by a repair
service, the name and address of that service. If there is a dispute concerning pre-existing damage
to the vehicle which the insurer does not intend to have repaired, the extent of such damage shall be
clearly stated in the estimate.
(4) If requested by a claimant, an insurer shall provide to the claimant copies of the estimate and all
supplements thereto that it uses to offer a settlement.

History Note: Authority G.S. 58-2-40; 58-63-65;
Eff. December 15, 1979;
Amended Eff. April 1, 1993; April 1, 1989.

11 NCAC 04 .0425 DEFINITIONS

As used in this Section the following terms shall be construed as follows:
(1) "After market part" means a part made by a nonoriginal manufacturer.
(2) "Insurer" includes any person authorized to represent the insurer with respect to a claim and who is
acting within the scope of the person's authority.
(3) "Nonoriginal manufacturer" means any manufacturer other than the original manufacturer of a part.
(4) "Part" means a sheet metal or plastic part that generally is a component of the exterior of a motor
vehicle, including an inner or outer panel.

History Note: Authority G.S. 58-2-40;
Eff. April 1, 1989.

11 NCAC 04 .0426 LIKE KIND AND QUALITY

No insurer shall require the use of an after market part in the repair of a motor vehicle unless the after market part is at
least equal to the original part in terms of fit, quality, performance and warranty. Insurers specifying the use of after
market parts shall include in the estimate the costs of any modifications made necessary by the use of after market
parts.

History Note: Authority G.S. 58-2-40;
Eff. April 1, 1989.

11 NCAC 04 .0427 DISCLOSURE REQUIREMENTS

(a) Every insurer that writes motor vehicle insurance in this state and that intends to require or specify the use of a f t e r
market parts must disclose to its policyholders in writing, either in the policy or on a sticker attached thereto, the
following information in no smaller print than ten point type:

IN THE REPAIR OF YOUR COVERED AUTO UNDER THE PHYSICAL DAMAGE COVERAGE P R O V I S I O N S OF T H I S P O L I C Y ,
WE MAY REQUIRE OR SPECIFY THE USE OF AUTOMOBILE PARTS NOT MADE BY THE ORIGINAL M A N U F A C T U R E R .
THESE PARTS ARE REQUIRED TO BE AT LEAST EQUAL IN TERMS OF FIT, QUALITY, PERFORMANCE AND
WARRANTY TO THE ORIGINAL MANUFACTURER PARTS THEY REPLACE.

(b) An insurer must disclose to a claimant in writing, either on the estimate or on a separate document attached to the
estimate, the following information in no smaller print than ten point type:

THIS ESTIMATE HAS BEEN PREPARED BASED ON THE USE OF AUTOMOBILE PARTS NOT MADE BY T H E O R I G I N A L
MANUFACTURER. PARTS USED IN THE REPAIR OF YOUR VEHICLE BY OTHER THAN THE ORIGINAL
MANUFACTURER ARE REQUIRED TO BE AT LEAST EQUAL IN TERMS OF FIT, QUALITY, PERFORMANCE AND
WARRANTY TO THE ORIGINAL MANUFACTURER PARTS THEY ARE REPLACING.

All after market parts installed on a motor vehicle shall be clearly identified on the estimate and invoice for such repair.

History Note: Authority G.S. 58-2-40;
Eff. April 1, 1989.