A BILL for an Act to create and enact a new section to chapter 26.1-40 of the North Dakota Century Code, relating to automobile ownership following damage resulting in a total loss.
Summary
HB 1243 would add a new section to North Dakota’s insurance code governing what happens when an insured vehicle is declared a total loss or constructive total loss. Under the bill, if an insurer makes that determination for a vehicle with physical damage coverage, the insured would have the option to keep the vehicle or let the insurer take ownership.
The bill also prohibits insurers from requiring the insured to pay anything, either from the insurance settlement or by other means, to get the vehicle back after a total-loss determination. In effect, the measure would standardize the right of vehicle owners to retain salvage or damaged vehicles without an added charge from the insurer.
Impact
If enacted, HB 1243 would amend chapter 26.1-40 of the North Dakota Century Code by creating a new rule for total-loss automobile claims. It would affect auto insurers, policyholders with physical damage coverage, and the handling of salvage vehicles after a collision or other covered loss. The bill would limit insurer discretion in total-loss settlements by guaranteeing an owner’s right to retain the vehicle and by barring any fee or deduction specifically tied to returning the vehicle.
Sentiment
The bill appears to have had limited support in the House, failing on second reading by a wide margin of 5 yeas to 86 nays. With no committee transcript available, there is no recorded floor or committee debate to indicate broader support or opposition arguments, but the vote suggests the chamber was generally unfavorable to the proposal.
Contention
The central point of contention is likely the bill’s restriction on insurer practices in total-loss claims. Supporters would view the measure as protecting consumer choice and preventing insurers from charging owners to keep their own vehicles, while opponents may have viewed it as an unnecessary mandate that could complicate claims handling or affect insurance costs and salvage valuations. The decisive negative vote indicates that concerns about regulating insurer settlement practices outweighed support for the consumer-protection approach.
A BILL for an Act to create and enact a new section to chapter 26.1-40 of the North Dakota Century Code, relating to automobile ownership following damage resulting in a total loss.
A BILL for an Act to create and enact a new section to chapter 26.1-40 of the North Dakota Century Code, relating to a prohibition on preferred automobile repair shops.