S.B. 314                                                  VETOES

Senate Bill No. 314

AN ACT concerning

Motor Vehicle Liability Insurance - Valuation of Motor Vehicles

FOR the purpose of requiring a certain insurer to use a certain value or average price
to determine the fair market value of a motor vehicle that is totally destroyed in
an accident; establishing that the determination of fair market value is subject
to certain adjustments the Maryland Insurance Commissioner to adopt
regulations that establish standards and procedures for the settlement of claims
involving the total loss of a certain motor vehicle and the determination of the
motor vehicle's total loss value; and generally relating to the valuation of motor
vehicles under motor vehicle liability insurance.

BY adding to

Article - Insurance

Section 27-914 27-304.1

Annotated Code of Maryland

(2002 Replacement Volume and 2002 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Insurance

27-914.

(A) TO DETERMINE THE FAIR MARKET VALUE OF A MOTOR VEHICLE THAT IS
TOTALLY DESTROYED IN AN ACCIDENT, AN INSURER THAT ISSUES OR DELIVERS A
POLICY OF MOTOR VEHICLE LIABILITY INSURANCE IN THE STATE SHALL USE;

(1) THE VALUE OF THE MOTOR VEHICLE IN EFFECT ON THE RELEVANT
DATE AS SET FORTH IN THE PUBLICATION OF USED CAR VALUES ADOPTED FOR USE
BY THE STATE DEPARTMENT OF TRANSPORTATION; OR .

(2) THE AVERAGE PRICE OF COMPARABLE MOTOR VEHICLES IN THE
LOCAL MARKET AREA THAT MEET MINIMUM STATE SAFETY AND EMISSION
STANDARDS AND OTHER CUSTOMARY AND REASONABLE CONDITION STANDARDS
CONTAINED IN THE PUBLICATION OF USED CAR VALUES ADOPTED FOR USE BY THE
STATE DEPARTMENT OF TRANSPORTATION.

(B) THE DETERMINATION OF FAIR MARKET VALUE UNDER SUBSECTION (A) OF
THIS SECTION IS SUBJECT TO ADJUSTMENT UP OR DOWN BASED ON;

(1) CLEARLY DEFINED AND DISCLOSED CONDITION, EQUIPMENT, AND
MILEAGE GUIDELINES USED BY THE INSURER TO DETERMINE THE VALUE OF THE
MOTOR VEHICLE ON THE RELEVANT DATE; AND

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