Section 2191.2 - Automobile Theft and Loss Reporting(a) Purpose. This section implements and interprets Insurance Code Section 1874.6.
(b) Automobile Theft and Loss Reporting. All insurers issuing private passenger automobile insurance in California shall report, either directly or through an authorized representative, to the National Insurance Crime Bureau (NICB), formerly the National Automobile Theft Bureau, all private passenger automobiles involving in total losses as follows:
1. All total thefts of a private passenger automobile, having a wholesale value in excess of $2000.00, shall be reported within five (5) working days from the receipt of sufficient information from the insured.2. All total losses involving private passenger automobile salvage where the vehicle is of the current model year or the four immediately preceding model years, however sustained, including claimant, shall be reported to the NICB within five (5) working days after he sale of salvage; or, if the insured, or third party claimant, is permitted to retain salvage, within five (5) working days after the date of loss payment.3. The information reported to the NICB shall include the vehicle's Vehicle Identification Number (VIN), the vehicle's make, model, model year and any other information, as required by the NICB. Where possible, this information shall be obtained from the Automobile Inspection Report completed pursuant to Section 2191 of this Article.(c) Theft Loss Verification Procedures. Notwithstanding any provision of the Unfair Practices Act (Insurance Code Sections 790 et seq.) and Regulations to the contrary:
1. No insurer shall pay a claim filed by an insured, or a third party claimant, under comprehensive or other coverage for the total theft of a private passenger automobile with a wholesale market value in excess of $2000.00, unless the claim has first been reported to and either acknowledged by the NICB or no information indicating unresolved questionable circumstances about the claim has been received from the NICB within 10 working days from the date the insurer transmitted the report to the NICB.2. Notwithstanding any provision of the Unfair Practices Act (Insurance Code Sections 790 et seq.) and Regulations to the contrary, an insurer may defer payment of a total theft loss claim filed under comprehensive or other coverage in accordance with the following: (A) An insurer may defer the payment of such a claim for five (5) calendar days following receipt of an acknowledgement from the NICB of the Insurer's report. If no further communication is received from the NICB during this five (5) day period indicating unresolved questionable circumstances, the insurer shall continue with the processing of the claim in accordance with the provisions of this section and other provisions of the Unfair Practices Act (Insurance Code section 790 et seq.) and Regulations.(B) If the NICB indicates in its acknowledgement or response to the insurer that coverage is in effect by more than one insurer for the same private passenger automobile or that the private passenger automobile has been previously reported as stolen and unrecovered, or that previous claims on the automobile have been reported, the insurer shall promptly investigate, attempt to resolve any discrepancy and report to the Fraud Division of the Department of Insurance, as required by Section 1872.4 of the Insurance Code.(C) If the NICB discovers an erroneous vehicle identification number (VIN) and the NICB is unable to resolve the discrepancy internally, the NICB shall send a standardized inquiry to the insurer. A response to the inquiry shall be returned within five (5) working days by the insurer and the insurer shall notify the Fraud Division as required by Section 1872.4 of the Insurance Code. If the NICB and the insurer are unsuccessful, after due diligence in resolving the VIN error after a thirty-day (30-day) period from the date of the receipt by the insurer of sufficient information from the insured, the insurer shall proceed with the final processing of the claim.(D) If the NICB indicates in its response to the insurer its belief, or if the insurer believes, that a fraudulent claim is being made by any claimant, the insurer shall report this information to the Fraud Division of the Department of Insurance as required by Section 1872.4 of the Insurance Code, suspend the processing of the claim and promptly begin an investigation. The insurer shall promptly provide such information to the NICB and shall cooperate fully with the NICB and the Department of Insurance in any investigation of potentially criminal or fraudulent acts.(d) Definitions. 1. As used in this section, "private passenger automobile" means a motor vehicle of the private passenger or station wagon type, any four-wheel vehicle with a load capacity of 1,500 pounds or less, or a motorcycle.2. As used in this section, and as provided in Section 544 of the Vehicle Code, "total salvage loss" means a private passenger automobile which has been wrecked, destroyed, or damaged, to such an extent that the owner, leasing company, financial institution, or the insurance company which has insured the vehicle, considers it uneconomical to repair the vehicle and because of this, the vehicle is not repaired by or for the person who owned the vehicle at the time of the event resulting in the damage.3. As used in this section, "total theft" means the theft of a private passenger automobile.Cal. Code Regs. Tit. 10, § 2191.2
1. New section filed 4-1-93; operative 5-1-93 (Register 93, No. 14). Note: Authority cited: Section 1874.6, Insurance Code. Reference: Section 1874.6, Insurance Code.
1. New section filed 4-1-93; operative 5-1-93 (Register 93, No. 14).