To make your draft letter
to the automobile insurance company
more consistent
with the laws of Ohio,
vet and edit your draft letter
against the laws of Ohio
that I copied and pasted below.

In the “What I would do today” module
of wasyourcartotaledorstolen.com,
I told you that,
if I had not yet agreed
to a valuation amount
for my total-loss vehicle,
then I would write a letter
to the automobile insurance company.

In that letter:

I would find fault
with the valuation methodology
that the automobile insurance company’s
valuation-services vendor
used to produce their valuation
of my total-loss vehicle.
If the automobile insurance company
sent me a deeply flawed
market valuation report
like the CCC market valuation report
that Travelers sent to me
or like the CCC market valuation report
that Maria’s insurance company
sent to her, then I might argue
that the valuation services vendor
had motive, means, and opportunity
to generate an unfair, inaccurate,
low valuation for my total-loss vehicle.
I would reject
the automobile insurance company’s
valuation offer.
I would propose
that the automobile insurance company
value my total-loss vehicle
at my total-loss vehicle’s
J.D. Power Buy from Dealer price.
I would argue
that the J.D. Power Buy from Dealer price
for my total-loss vehicle
is a fair and unbiased calculation
of my total-loss vehicle’s
actual cash value.

Some parts of my letter would be different
depending on whether my total-loss claim
was a first-party claim or a third-party claim.

Then, in the “Let’s get to work” module,
I offered you
polite and muscular model letters
in docx format that,
if you wish to do so,
you can use as the starting point
for your letter
to the automobile insurance company
if you have not yet settled
your total-loss claim.

I suggested that you edit your draft letter
to make your letter consistent
with your total-loss vehicle’s
J.D. Power valuation,
make your letter consistent
with the CCC market valuation report
or other market valuation report
that you received
from the automobile insurance company,
and, if your total-loss claim
is a first-party claim,
make your letter consistent
with what your automobile insurance policy says.

Now I take you through another way
in which you may wish
to edit your draft letter.

The laws that regulate
how automobile insurance companies
are required to value total-loss vehicles
and settle total-loss claims
are different in different states.

Hence, if you are using
my model letters
as the starting point for your letter
to the automobile insurance company,
then you or the attorney with whom you meet
will need to vet your draft letter
against the laws of your state.

You or the attorney
will need to edit your draft letter
to make it fully consistent
with the laws of your state.

To make it possible for you
to vet and edit your draft letter
against the laws of your state,
I have copied and pasted below
what I believe to be
the most relevant and useful provisions
of the laws of Ohio
that regulate
how automobile insurance companies
that do business in Ohio
are required to value total-loss vehicles
and settle total-loss claims.

If you read through the excerpts
of the laws below,
you may be able to make
some of the required changes,
modifications, and deletions
to your draft letter yourself.

Where you are not sure what changes,
modifications, or deletions to make
to your draft letter,
you may want to leave them
for the attorney to make
when you meet with her or him.

If you have not done so already
(and you wish to do so),
download one of my starter documents.

If your total-loss claim is a first-party claim, download
Marlow_First_party_Not_yet_settled_letter.docx.

If your total-loss claim is a third-party claim, download
Marlow_Third_party_Not_yet_settled_letter.docx.

If you have not done so already,
in your word-processing software,
use “Find and replace” ➞ “Replace all”
to replace the specifics
of my fictitious total-loss claim
with the specifics
of your total-loss claim.

Print the draft document.

Your draft docucment
will be easier to work with
if you print it on only one side
of the paper.

Follow the instructions
that I embedded in the draft document.

Depending on whether your total-loss claim
is a first-party claim
or a third-party claim
and depending on whether you choose
to work with my polite model letter,
to work with my muscular model letter,
or to blend the two model letters;
you need to know or need to find
or need to ask an attorney
the answers to one
of the following sets of questions:

Questions for a first-party claim.

Questions for a third-party claim.

vet_your_draft_letter_against_your_state_s_lawsChapter

If your total-loss claim
is a first-party claim,
then, to adapt
my first-party model letters
to the laws of your state,
you need to know or need to find
or need to ask an attorney
the answers to these sets of questions.

In my polite model letter
and in my muscular model letter,
I suggest that you add, leave in,
or take out certain sentences
depending on what your state’s laws
say about a particular aspect of the law.

To decide what to do
if you are using either of my model letters
as the starting point for your letter,
here are the questions
that you need to know or need to find
or need to ask an attorney
the answers to.

FIRST-PARTY total-loss claim.

I’ve included these questions
in the docx model letters
just before each letter.

In your printout of the docx document,
underneath each question,
you will find Yes ( ) No ( ) check offs.

FIRST-PARTY total-loss claim.

When, in a section of the law,
you find the answer to a question,
you may wish to download a PDF
of that section of the law.

To do so,
at the end of that section of the law,
click “Verify statute or Download PDF.”

You may wish to print those PDFs.

On each printout,
next to the paragraph of the law
that answers a question,
you may wish to write down
the question that the paragraph answers.

(Do not write down
just the question number because,
when you edit your starter document,
the question numbers will adjust
to your changes.)

If you follow this procedure,
then those marked-up PDF printouts
may facilitate your conversation
with the attorney with whom you meet.

FIRST-PARTY total-loss claim.

questions_of_law_for_first_party_total_loss_claimsChapter

To adapt
my polite first‑party model letter
to the laws of your state,
you need to know or need to find
or need to ask an attorney
the answer to this question.

If your state’s laws mention N.A.D.A. Guides
as an approved source
of valuations of total-loss vehicles,
then, most likely,
your state’s commissioner of insurance
has approved J.D. Power
as an authorized source of valuations
for total-loss vehicles.

In 2015, J.D. Power acquired
NADA’s Used Car Guide
and www.nadaguides.com.

The company has rebranded
NADA Guides as J.D. Power
and rebranded www.nadaguides.com
as www.jdpower.com.

Whether your state’s laws
mention N.A.D.A. Guides or not,
to be sure of the correct answer
to this question,
ask the attorney with whom you meet.

Does your state’s
commissioner of insurance
approve J.D. Power
as an authorized source
of valuations for total-loss vehicles?

FIRST-PARTY total-loss claim.

questions_of_law_for_first_party_polite_letterSubchapter

To adapt
my muscular first‑party model letter
to the laws of your state,
you need to know or need to find
or need to ask an attorney
the answers to these questions.

In many states, state law says that,
for a comp vehicle to qualify
as substantailly similar
to a total-loss vehicle,
the comp vehicle must be
the same make, same model,
same model year, same trim level,
same major options,
and have similar mileage.

In some states, state law goes on
to limit the mileage difference
between a comp vehicle
and a total-loss vehicle.

For example, the New Jersey
administrative code that governs
automobile physical damage claims
says:

“ ‘Substantially similar vehicle’ means
a vehicle of the same make, model, year
and condition, including all major options
of the insured vehicle. Mileage
must not exceed that of the insured vehicle
by more than 4,000 miles.”

Do your state’s laws say that,
for a comp vehicle to qualify
as substantially similar or comparable
to a total-loss vehicle,
the comp vehicle’s mileage
must be similar
to the total-loss vehicle’s mileage?
Do your state’s laws go on
to limit the mileage differences
between total-loss vehicles
and substantially similar
or comparable vehicles?

FIRST-PARTY total-loss claim.

In most states,
courts have decided that the state’s
automobile insurance regulations
take away
a first-party claimant’s right to sue
his or her automobile insurance company
for punitive damages
(also called exemplary damages)
if his or her automobile insurance company
not only acts in breach of contract
but also engages
in reprehensible bad-faith misconduct.

These court decisions typically argue
that only the state’s
commissioner of insurance
can fine or otherwise punish
an automobile insurance company
for engaging
in unfair claim settlement practices
and in reprehensible misconduct.

In a few states, however,
the laws that regulate
how automobile insurance companies
that do business in the state
are required to value total-loss vehicles
and settle total-loss claims
explicitly give total-loss claimants
the right to sue
his or her automobile insurance company
for punitive or exemplary damages
if his or her automobile insurance company
not only acts in breach of contract
but also engages
in reprehensible bad-faith misconduct.

Do court decisions in your state
take away your right to sue
your automobile insurance company
for punitive or exemplary damages
if your automobile insurance company
not only acts in breach of contract
but also engages
in reprehensible bad-faith misconduct?

Most likely, you will need
to pose this question
to the attorney with whom you meet
because the answer to this questions
depends on court decisions.

Or do the regulatory laws of your state
explicitly give you the right to sue
your automobile insurance company
for punitive or exemplary damages
if your automobile insurance company
not only acts in breach of contract
but also engages
in reprehensible bad-faith misconduct?

You may be able to find
the answer to this question
in your state’s laws below.

FIRST-PARTY total-loss claim.

In many states, court decisions say
that an automobile insurance company
is not responsible for the validity
of valuation opinions
that it buys
from other corporations.

The regulatory laws of a few states
say that an automobile insurance company
is responsible
for the validity of valuations
that it uses
to value claimants’ total-loss vehicles.

Do the regulatory laws of your state
hold your automobile insurance company
responsible for the validity
of its valuation of your total loss vehicle?

FIRST-PARTY total-loss claim.

(The discussion and question that follow
are the same as for question 1. above
for the polite model letter.)

In 2015, J.D. Power acquired
NADA’s Used Car Guide
and www.nadaguides.com.

The company has rebranded
NADA Guides as J.D. Power
and rebranded www.nadaguides.com
as www.jdpower.com.

Whether your state’s laws
mention N.A.D.A. Guides or not,
to be sure of the correct answer
to this question,
ask the attorney with whom you meet.

Does your state’s
commissioner of insurance
approve J.D. Power
as an authorized source
of valuations for total-loss vehicles?

FIRST-PARTY total-loss claim.

questions_of_law_for_first_party_muscular_letterSubchapter

Keep an eye out
for paragraphs of the law
that may prove useful to you
if your automobile insurance company
does not agree to the valuation amount
for your total-loss vehicle
that you propose in your letter.

While you are looking for the answers
to the previous questions
for your first-party total-loss claim,
you may wish to keep an eye out
for answers to a few questions
that are outside the scope
of your letter
to your automobile insurance company.

The answers to these questions
may prove useful to you
if your automobile insurance company
does not agree to the valuation amount
that you propose in your letter.

For each of these questions too,
you may wish
to download, print, and mark up
a PDF of the section of the law
that answers the question.

FIRST-PARTY total-loss claim.

If you dispute the valuation amount
that your automobile insurance company
proposes for your total-loss vehicle,
the laws of your state may require
your automobile insurance company
to go ahead and pay you
the amount of money
that is not in dispute.

The amount of money
that is not in dispute
includes the valuation amount
for your total-loss vehicle
that your automobile insurance company
proposed.

To require
your automobile insurance company
to go ahead and pay you
the valuation amount
that is not in dispute,
the laws of your state
may say something like this:

If an insurer and the insured
or third-party claimant are unable to agree
on the value of the automobile,
an insurer shall pay the insured
or third-party claimant
the amount of the automobile’s value
that is not in dispute
as provided in section 3,
chapter 65, Oregon Laws 2009.

An insurer is not obligated
to pay the undisputed amount
until the insured
or third-party owner of the automobile:

(a) Agrees to execute documents
sufficient to transfer ownership
of the automobile
to the insurer; and
(b) Authorizes the insurer,
at the insurer’s expense,
to move the automobile
to a disclosed location
selected by the insurer,
where the automobile
will remain available
for inspection and evaluation
for not fewer than 14 calendar days.
After the expiration of the 14-day period,
the insurer may proceed
with the salvage sale of the automobile.

If you dispute the valuation amount
that your automobile insurance company proposes for your total-loss vehicle,
do the laws of your state require
your automobile insurance company
to go ahead and pay you
the amount of money
that is not in dispute?

FIRST-PARTY total-loss claim.

In the laws below,
you may find that your state legislators
have given you a right of recourse.

If you have a right of recourse
and your automobile insurance company
refuses to value your total-loss vehicle
at its actual cash value,
then you may be able
to get additional money
from your automobile insurance company
if you exercise your right of recourse.

FIRST-PARTY total-loss claim.

If your state’s legislators
have given you a right of recourse,
they may also have given
your automobile insurance company
dubious ways to preclude or satisfy
your exercise of your right of recourse.

Your automobile insurance company
may be able to preclude your exercise
of your right of recourse if,
when they send you a settlement check,
they identify
an allegedly substantially similar vehicle
for sale at a local automobile dealership
that you allegedly can buy
for their valuation amount.

Likewise,
your automobile insurance company
may be able to satisfy your exercise
of your right of recourse if,
after you exercise your right of recourse,
they identify
an allegedly substantially similar vehicle
for sale at a local automobile dealership
that you allegedly can buy
for their valuation amount.

FIRST-PARTY total-loss claim.

If either of these possibilities come to pass,
you likely will want to inspect
your automobile insurance company’s
candidate right-of-recourse vehicle
to determine if that vehicle
is, in fact, substantially similar
to your total-loss vehicle—
same make, same model, same model year,
same major options, similar mileage,
and same or better condition.

You likely will want to verify
that your automobile insurance company’s
candidate right-of-recourse vehicle
is for sale at the automobile dealership
that your automobile insurance company
alleges at the price that
your automobile insurance company alleges.

FIRST-PARTY total-loss claim.

If the laws of your state
give you a right of recourse,
counting from the day
that your automobile insurance company
puts the initial settlement check in the mail,
you likely have only so many days
in which to exercise your right of recourse
or you lose your right of recourse.

FIRST-PARTY total-loss claim.

Do the laws of your state
give you a right of recourse?
If you have a right of recourse,
do the laws of your state allow
an automobile insurance company
to preclude your exercise
of your right of recourse if,
when they send you a settlement check,
they identify
a substantially similar vehicle
for sale at a local automobile dealership
that you can buy
for their valuation amount?
If you have a right of recourse,
do the laws of your state allow
your automobile insurance company
to satisfy your exercise
of your right of recourse if,
after you exercise your right of recourse,
they identify
a substantially similar vehicle
for sale at a local automobile dealership
that you can buy
for their valuation amount?
If you have a right of recourse,
how many days
after your automobile insurance company
sends you a settlement check
do you have to exercise
your right of recourse
before you lose it?

FIRST-PARTY total-loss claim.

In some states, the law allows
an automobile insurance company
to take away
a first-party claimant’s right of recourse
if the automobile insurance company
invokes the appraisal clause
in the claimant’s automobile insurance policy.

In your state,
do you lose your right of recourse
if your automobile insurance company
invokes the appraisal clause
in your automobile insurance policy?

FIRST-PARTY total-loss claim.

The laws of some states prohibit
an automobile insurance company
from saying that,
if you cash or deposit a settlement check,
then, thereby, you agree to the settlement.

Such a prohibition may use such language
as this:

“No insurer shall issue a check or draft
in payment of a claim that contains
any language or provision that implies
or states that acceptance of the check or draft
constitutes a final settlement or release
of any or all future obligations
arising out of the loss.”

Do the laws of your state prohibit
an automobile insurance company
from saying that, if you cash or deposit
a settlement check, then, thereby,
you agree to the settlement?

FIRST-PARTY total-loss claim.

questions_of_law_in_case_first_party_letter_failsSubchapter

The legislators of a few states
give rights to first-party claimants
that legislators of other states
take away from first-party claimants.

Are your state legislators right givers?

Or right takers?

At least one state
has a consumer-protection law that says
an automobile insurance company
cannot require a first-party total-loss claimant
to resolve a claim-settlement dispute
through private arbitration unless
the claimant’s automobile insurance policy
allows the claimant to resolve the dispute
through a small-claims lawsuit instead.

Do your state’s consumer-protection laws
give first-party total-loss claimants
the right to have a dispute resolved
through a small-claims lawsuit
in lieu of having that dispute resolved
through private arbitration?

FIRST-PARTY total-loss claim.

In a few states,
if a party to a written contract
not only breaches the terms of the contract
but also acts in bad faith,
the laws of the state
regard that act of bad faith
as a tort against the non-breaching party
to the contract.

In your state,
if your automobile insurance company
not only breaches the terms
of your automobile insurance policy
but also acts in bad faith,
does their bad-faith misconduct
give you a cause of action
against them under tort law?
If the answer
to the previous question is yes,
then is your cause of action under tort law
exempt from your automobile insurance policy’s arbitration clause?

FIRST-PARTY total-loss claim.

To skip over questions
for a third-party claim, click here.

FIRST-PARTY total-loss claim.

questions_of_first_party_consumer_protection_lawsSubchapter

If your total-loss claim
is a third-party claim,
then, to adapt
my third-party model letters
to the laws of your state,
you need to know or need to find
or need to ask an attorney
the answers to these sets of questions.

THIRD-PARTY total-loss claim.

I’ve included these questions
in the docx model letters
just before each letter.

In your printout of the docx document,
underneath each question,
you will find Yes ( ) No ( ) check offs.

THIRD-PARTY total-loss claim.

When, in a section of the law,
you find the answer to a question,
you may wish to download a PDF
of that section of the law.

To do so,
at the end of that section of the law,
click “Verify statute or Download PDF.”

You may wish to print those PDFs.

On each printout,
next to the paragraph of the law
that answers a question,
you may wish to write down
the question that the paragraph answers.

(Do not write down
just the question number because,
when you edit your starter document,
the question numbers will adjust
to your changes.)

If you follow this procedure,
then those marked-up PDF printouts
may facilitate your conversation
with the attorney with whom you meet.

THIRD-PARTY total-loss claim.

questions_of_law_for_third_party_total_loss_claimsChapter

To adapt
my polite third‑party model letter
to the laws of your state,
you need to know or need to find
or need to ask an attorney
the answer to this question.

In 2015, J.D. Power acquired
NADA’s Used Car Guide
and www.nadaguides.com.

The company has rebranded
NADA Guides as J.D. Power
and rebranded www.nadaguides.com
as www.jdpower.com.

Whether your state’s laws
mention N.A.D.A. Guides or not,
to be sure of the correct answer
to this question,
ask the attorney with whom you meet.

Does your state’s
commissioner of insurance
approve J.D. Power
as an authorized source
of valuations for total-loss vehicles?

THIRD-PARTY total-loss claim.

questions_of_law_for_third_party_polite_letterSubchapter

To adapt
my muscular third‑party model letter
to the laws of your state,
you need to know or need to find
or need to ask an attorney
the answers to these questions.

In some states, state law goes on
to limit the mileage difference
between a comp vehicle
and a total-loss vehicle.

For example, the New Jersey
administrative code that governs
automobile physical damage claims
says:

Do your state’s laws say that,
for a comp vehicle to qualify
as substantially similar or comparable
to a total-loss vehicle,
the comp vehicle’s mileage
must be similar
to the total-loss vehicle’s mileage?
Do your state’s laws go on
to limit the mileage differences
between total-loss vehicles
and substantially similar
or comparable vehicles?

THIRD-PARTY total-loss claim.

(The discussion and question that follow
are the same as for question 1. above
for the polite model letter.)

In 2015, J.D. Power acquired
NADA’s Used Car Guide
and www.nadaguides.com.

The company has rebranded
NADA Guides as J.D. Power
and rebranded www.nadaguides.com
as www.jdpower.com.

Whether your state’s laws
mention N.A.D.A. Guides or not,
to be sure of the correct answer
to this question,
ask the attorney with whom you meet.

Does your state’s
commissioner of insurance
approve J.D. Power
as an authorized source
of valuations for total-loss vehicles?

THIRD-PARTY total-loss claim.

questions_of_law_for_third_party_muscular_letterSubchapter

Keep an eye out
for paragraphs of the law
that may prove useful to you
if the automobile insurance company
does not agree to the valuation amount
that you propose in your letter
for your total-loss vehicle.

While you are looking for the answers
to the previous questions
for your third-party total-loss claim,
you may wish to keep an eye out
for answers to a few questions
that are outside the scope
of your letter
to the automobile insurance company.

The answers to these questions
may prove useful to you
if the automobile insurance company
does not agree to the valuation amount
that you propose in your letter.

For each of these questions too,
you may wish
to download, print, and mark up
a PDF of the section of the law
that answers the question.

THIRD-PARTY total-loss claim.

In some states, the laws that regulate
how automobile insurance companies
are required to value total-loss vehicles
and settle total-loss claims say
that those laws apply
only to first-party claims.

In some states, those laws say
that the laws apply to first-party claims
and to third-party claims.

In some states, those laws say
that all the laws apply to first-party claims
and only some of the laws
apply to third-party claims.

Ordinarily, in most states,
you have much stronger rights
in the settlement of a third-party claim
than you do
in the settlement of a first-party claim.

The automobile insurance company
that you’re dealing with
on your third-party claim
may think and act like
they can treat you
the same way
that they treat their policyholders
on those policyholders’ first-party claims.

The automobile insurance company
that you’re dealing with
on your third-party claim
may even try to trick you
into conforming
with claim-settlement regulations
that apply only to first-party claims.

Don’t let them!

To be savvy enough
to keep the automobile insurance company
that you’re dealing with
from treating you
like you’re a first-party claimant,
familiarize yourself
with which of your state’s
automobile insurance
claim-settlement laws—
if any—
apply to you and your claim.

If your state’s laws
consistently talk about “the insured,”
and never say that the laws
also apply to third-party claimants,
then that language strongly suggests
that those laws do not apply to you
or to your third-party claim.

You are not the insured.

The at-fault-driver policyholder
is the insured.

Do the laws of your state that regulate
how automobile insurance companies
are required to value total-loss vehicles
and settle total-loss claims
apply only to first-party claims?
Or do all those laws
apply to both first-party claims
and third-party claims?
Or do all the laws
apply to first-party claims
and only some of the laws
also apply to third-party claims?

THIRD-PARTY total-loss claim.

If you dispute the valuation amount
that the automobile insurance company
proposes for your total-loss vehicle,
the laws of your state may require
the automobile insurance company
to go ahead and pay you
the amount of money
that is not in dispute.

The amount of money
that is not in dispute
includes the valuation amount
for your total-loss vehicle
that the automobile insurance company
proposed.

To require
the automobile insurance company
to go ahead and pay you
the valuation amount
that is not in dispute,
the laws of your state
may say something like this:

An insurer is not obligated
to pay the undisputed amount
until the insured
or third-party owner of the automobile:

(a) Agrees to execute documents
sufficient to transfer ownership
of the automobile
to the insurer; and
(b) Authorizes the insurer,
at the insurer’s expense,
to move the automobile
to a disclosed location
selected by the insurer,
where the automobile
will remain available
for inspection and evaluation
for not fewer than 14 calendar days.
After the expiration of the 14-day period,
the insurer may proceed
with the salvage sale of the automobile.

If you dispute the valuation amount
that the automobile insurance company proposes for your total-loss vehicle,
do the laws of your state require
the automobile insurance company
to go ahead and pay you
the amount of money
that is not in dispute?

THIRD-PARTY total-loss claim.

The laws of some states
give third-party total-loss claimants
a right of recourse.

If you have a right of recourse
and the automobile insurance company
refuses to value your total-loss vehicle
at its actual cash value,
then you may be able
to get additional money
from the automobile insurance company
if you exercise your right of recourse.

THIRD-PARTY total-loss claim.

If your state’s legislators
have given you a right of recourse,
they may also have given
the automobile insurance company
dubious ways to preclude or satisfy
your exercise of your right of recourse.

The automobile insurance company
may be able to preclude your exercise
of your right of recourse if,
when they send you a settlement check,
they identify
an allegedly substantially similar vehicle
for sale at a local automobile dealership
that you allegedly can buy
for their valuation amount.

Likewise, the automobile insurance company
may be able to satisfy your exercise
of your right of recourse if,
after you exercise your right of recourse,
they identify
an allegedly substantially similar vehicle
for sale at a local automobile dealership
that you allegedly can buy
for their valuation amount.

THIRD-PARTY total-loss claim.

If either of these possibilities come to pass,
then you likely will want to inspect
the automobile insurance company’s
candidate right-of-recourse vehicle
to determine if that vehicle
is, in fact, substantially similar
to your total-loss vehicle—
same make, same model, same model year,
same major options, similar mileage,
and same or better condition.

You likely will want to verify
that the automobile insurance company’s
candidate right-of-recourse vehicle
is for sale at the automobile dealership
that the automobile insurance company
alleges at the price that
the automobile insurance company alleges.

THIRD-PARTY total-loss claim.

If the laws of your state
give you a right of recourse,
counting from the day
that the automobile insurance company
puts the initial settlement check in the mail,
you likely have only so many days
in which to exercise your right of recourse
or you lose your right of recourse.

THIRD-PARTY total-loss claim.

Do the laws of your state
give you a right of recourse?
If you have a right of recourse,
do the laws of your state allow
an automobile insurance company
to preclude your exercise
of your right of recourse if,
when they send you a settlement check,
they identify
a substantially similar vehicle
for sale at a local automobile dealership
that you can buy
for their valuation amount?
If you have a right of recourse,
do the laws of your state allow
the automobile insurance company
to satisfy your exercise
of your right of recourse if,
after you exercise your right of recourse,
they identify
a substantially similar vehicle
for sale at a local automobile dealership
that you can buy
for their valuation amount?
If you have a right of recourse,
how many days
after the automobile insurance company
sends you a settlement check
do you have to exercise
your right of recourse
before you lose it?

THIRD-PARTY total-loss claim.

The laws of some states prohibit
an automobile insurance company
from saying that,
if you cash or deposit a settlement check,
then, thereby, you agree to the settlement.

Such a prohibition may use such language
as this:

Do the laws of your state prohibit
an automobile insurance company
from saying that,
if you cash or deposit
a settlement check, then, thereby,
you agree to the settlement?

THIRD-PARTY total-loss claim.

questions_of_law_in_case_third_party_letter_failsSubchapter

Questions about the laws of your state
to which the answers
may prove useful to you
if you end up suing
the at-fault driver and his or her
automobile insurance company
for the money
that the at-fault driver’s
automobile insurance company
cheated you out of.

The laws of some states
specify multiple sources
that an automobile insurance company
may use to come up
with an initial valuation offer
for a claimant’s total loss vehicle.

The laws then go on to say
that the automobile insurance company’s
initial valuation offer
cannot be lower
than the lowest valuation amount
from one of these approved sources.

The laws of some states say
that an automobile insurance company
may use as its initial valuation offer
a valuation generated by a valuation source
that uses a computerized data base
that is approved
by the state’s commissioner of insurance.

A state’s commissioner of insurance
may approve valuation sources
such as CCC Information Services
a.k.a. CCC Intelligent Solutions.

CCC Information Services
a.k.a. CCC Intelligent Solutions
produced the garbage-in-garbage-out
CCC market valuation report
for my total-loss vehicle
and produced
the GIGO CCC market-valuation report
for Maria’s total-loss vehicle.

Valuation sources that produce valuations
only for automobile insurance companies
and that use a computerized data base
to produce those valuations
likely produce the lowest valuations
of any of the approved sources.

Such valuation sources may have
motive, means, and opportunity
to undervalue your total-loss vehicle.

Do the laws of your state
specify multiple sources
that an automobile insurance company
may use to come up
with an initial valuation offer
for your total-loss vehicle?
Do the laws of your state say
that the automobile insurance company’s
initial valuation offer
for your total-loss vehicle
cannot be lower
than the lowest valuation amount
from one of the approved sources?
Do the laws of your state
allow an automobile insurance company
to use a valuation
generated by a valuation service
that uses a computerized data base?

THIRD-PARTY total-loss claim.

The laws of some states say
that an automobile insurance company
shall value a total-loss vehicle
at its actual cash value.

The laws of some states
define actual cash value.

Do the laws of your state say
that an automobile insurance company
shall value a total-loss vehicle
at its actual cash value?
Do the laws of your state
define actual cash value?

THIRD-PARTY total-loss claim.

The laws of some states defnine
substantially similar vehicle
or comparable vehicle.

Do the laws of your state define substantially similar vehicle
or comparable vehicle?

Regardless of what the statutory laws
of your state say,
keep in mind
that the fundamental principle
of the law of negligence torts
is this:

When one person,
through an act of negligence,
harms another person;
the negligent person
(or his or her insurance company)
is obligated to pay
the victim of the negligent act
enough money
to make the victim whole
for his or her loss.

That is, the negligent person
(or his or her insurance company)
is obligated to pay
the victim of the negligent act
enough money
to make the victim as well off financially
as he or she was before the negligent act.

If you cannot negotiate
a fair valuation of your total-loss vehicle
with the automobile insurance company,
then you can refuse to agree
to the automobile insurance company’s
valuation of your total-loss vehicle.

You can dispute their valuation.

You can sue the at-fault driver
for the amount of money
that his or her
automobile insurance company
cheated you out of.

THIRD-PARTY total-loss claim.

questions_of_third_party_consumer_protection_lawsSubchapter

If it’s more work
than you wish to do
to vet and edit your draft letter
against Ohio’s laws,
then let the attorney
with whom you meet
vet and edit the letter for you.

I’m a do-it-yourself kind of person.

You may not be.

Or you may be too busy
with the rest of your life
to spend a lot of time
working on your total-loss claim.

If, for whatever reason,
you prefer not to vet and edit
a draft letter against your state’s laws,
don’t do it.

You will be sufficiently well prepared
to meet with an attorney
about your total-loss claim
so long as you provide him or her
with copies of:

The market valuation report
that you received
from the automobile insurance company
for your total-loss vehicle,
The Monroney Label window sticker
for your total-loss vehicle,
Your total-loss vehicle’s
J.D. Power Buy from Dealer price,
The specs that the J.D. Power calculator
used to value your total-loss vehicle,
Your draft letter
at whatever stage of development
it happens to be in,
The police report on your vehicle’s
collision or theft, and
If your claim is a first-party claim,
your automobile insurance policy.

If you provide the attorney
with these ingredients,
then he or she can turn the work
that you have done
into an effective letter and package.

skip_this_step_if_you_want_toChapter

Help me create model letters
tailored to the laws of every state.

Send me a few dollars.

Today I’m having to ask you
to do a lot more work
than I would like to.

I’m having to ask you
to vet and edit your draft letter
against the laws of your state
that I copied and pasted below.

As I continue to develop
wasyourcartotaledorstolen.com,
I hope to offer total-loss claimants
starter letters
for first-party total-loss claims
and starter letters
for third-party total-loss claims
that are tailored to the laws
of each and every state.

“Jesus, Jerry!

“That sounds like a helluva lot of work!”

Yeah, I know!

Shows you how much I hate seeing
giant, powerful, unethical corporations
rip off everyday Americans.

With starter letters that are tailored
to the laws of each and every state,
future total-loss claimants
who come to wasyourcartotaledorstolen.com
will have a lot less work to do.

They will be able to create draft letters
that require less of a local attorney’s time
to review, vet, tweak, and strengthen.

I’m itching to do the work.

In the left-hand column
next to each state’s laws,
I hope to give total-loss claimants
a guided tour of the laws that,
in their state, regulate
how automobile insurance companies
are required to value total-loss vehicles
and settle total-loss claims.

On that guided tour,
I plan to explain and comment on
the important provisions
of each state’s laws.

On that guided tour,
I plan to point out
the answers to questions
that, today, I have to ask you
to search for yourself.

On that guided tour,
I plan to point out which paragraphs
of each state’s laws read like
they were written
by a lobbyist who works
for automobile insurance companies.

Total-loss claimants
also will want to know
the answers to other questions
about the laws of their state
that do not appear in the state’s
automobile insurance regulatory laws.

Over time, as I continue my research
and as I receive more and more
pro bono publico guidance
(guidance for the public good)
from attorneys in each state;
I hope to post more and more answers
to these questions.

If I am able to achieve these goals,
then, over time, total-loss claimants
who come to wasyourcartotaledorstolen.com
will be able to gain a fuller,
more accurate, more precise,
and more powerful understanding
of the rights
that their state legislators
have given them
and of the rights
that their state legislators
have taken away from them.

Everyday Americans will be able
to have more knowledgeable
and more productive conversations
with local attorneys.

If everyday Americans
who are fed up
with automobile insurance companies
cheating them and ripping them off
will support my work;
then I may be able to build
my one-person efforts
into an organization.

With an organization,
we may be able to persuade
our state legislators
(and perhaps our national legislators)
to rewrite some of the laws
that make it so easy
for automobile insurance companies
to screw us all.

If you would like to help me
teach everyday Americans
how to get fair valuations
of their total-loss vehicles,
then, at the top right of your screen,

click this image:

Send me a few dollars.

With your help, I’m just getting started.

help_me_create_letters_tailored_to_laws_of_every_stateChapter

The laws of Ohio that regulate
how automobile insurance companies
that do business in Ohio
are required
to value total-loss vehicles
and settle total-loss claims.

My Comments

Ohio Regulations

The regulations that govern
how insurance companies
that operate in Ohio
are required
to value total‑loss vehicles
and settle total‑loss claims
are part
of the Ohio Administrative Code.

Ohio Administrative Code

Title 3901 - Department of Insurance

Chapter 3901-1 - General Provisions

Current through all regulations passed and filed through August 26, 2022

To help you zero in
on the most relevant and useful paragraphs
of your state’s
automobile insurance regulations,
here’s how I have color coded
your state’s laws:

What I believe to be
the most relevant and useful paragraphs
of your state’s law appear in red.

Relevant and potentially useful paragraphs
appear in black.

Paragraphs unlikely to be relevant or useful
appear in grey.

Just in case you landed here
looking for information
about how automobile insurance companies
are supposed to settle claims
in which your vehicle can be repaired
(partial-loss claims),
paragraphs of the law
that deal with repairs
appear in blue.

To make sure that a section
of the law has not changed
since I copied it and pasted it here,
at the end of that section,
click: Verify statute or Download PDF.

If you discover
that a section of a law has changed
or is no longer accessible
through casetext.com,
please send me an email
and let me know
so I can update the law
or update the verify link here.

Thomson Reuters Westlaw
recently acquired Casetext.
I do not know if Thomson Reuters Westlaw
will continue to make these state laws
available to everyday Americans for free.

Section 3901-1-07 - Unfair trade practices

(A) Purpose

The purpose of this rule is to define certain additional unfair trade practices and to set forth required procedures in connection therewith. Sections 3901.20 and 3901.21 of the Revised Code respectively prohibit unfair or deceptive practices in the business of insurance and define certain acts or practices as unfair or deceptive. Section 3901.21 of the Revised Code also provides that the enumeration of specific unfair or deceptive acts or practices in the business of insurance is not exclusive or restrictive or intended to limit the powers of the superintendent of insurance to adopt rules to implement that section.
(B) Authority

This rule is promulgated pursuant to the authority vested in the superintendent under section 3901.041 of the Revised Code. Section 3901.041 of the Revised Code provides that the superintendent of insurance shall adopt, amend, and rescind rules and make adjudications necessary to discharge the superintendent’s duties and exercise that person’s powers under Title 39 of the Revised Code.
(C) Defined unfair practices

It shall be deemed an unfair or deceptive practice to commit or perform with such frequency as to indicate a general business practice any of the following:
- (1) Knowingly misrepresenting to claimants pertinent facts or policy provisions relating to coverage at issue;
  - (a) Misrepresenting a pertinent policy provision by making any payment, settlement, or offer of first party benefits, which, without explanation, does not include all amounts which should be included according to the claim filed by the first party claimant and investigated by the insurer;
  - (b) Denying a claim on the grounds of a specific policy provision, condition, or exclusion without reference to such provision, condition, or exclusion;
- (2) Failing to acknowledge pertinent communications with respect to claims arising under insurance policies in writing, or by other means so long as an appropriate notation is made in the claim file of the insurer, within fifteen days of receiving notice of a claim in writing or otherwise;
- (3) Failing to make an appropriate reply within twenty-one days of all other pertinent communications and/or any inquiries of the department of insurance respecting a claim;
- (4) Failing to adopt and implement reasonable procedures to commence an investigation of any claim filed by either a first party or third party claimant, or by such claimant’s authorized representative, within twenty-one days of receipt of notice of claim;
- (5) Failing to mail or furnish claimant or the claimant’s authorized representative, a notification of all items, statements and forms, if any, which the insurer reasonably believes will be required of such claimant, within fifteen days of receiving notice of claim, unless the insurer, based on the information then in its possession does not yet know all such requirements, then such notification shall be sent, within a reasonable time;
- (6) Not offering first party or third party claimants, or their authorized representatives who have made claims which are fair and reasonable and in which liability has become reasonably clear, amounts which are fair and reasonable as shown by the insurer’s investigation of the claim, providing the amounts so offered are within policy limits and in accordance with the policy provisions;
- (7) Compelling insureds to institute suits to recover amounts due under its policies by offering substantially less than the amounts ultimately recovered in suits brought by them when such insureds have made claims for amounts reasonably similar to the amounts ultimately recovered;
- (8) Making known to insureds or claimants a policy of appealing from arbitration awards in favor of insureds or claimants for the purpose of compelling them to accept settlements or compromises less than the amount awarded in arbitration;
- (9) Attempting settlement or compromise of claims on the basis of applications which were altered without notice to, or knowledge, or consent of insureds;
- (10) Attempting to settle or compromise claims for less than the amount which the insureds had been led reasonably to believe they were entitled to, by written or printed advertising material accompanying or made part of an application;
- (11) Attempting to delay the investigation or payment of claims by requiring an insured and his physician to submit a preliminary claim report and then requiring the subsequent submission of formal proof of loss forms, both of which submissions contain substantially the same information;
- (12) Failing to advise the first party claimant or the claimant’s authorized representative, in writing or by other means so long as an appropriate notation is made in the claim file of the insurer, of the acceptance or rejection of the claim, within twenty-one days after receipt by the insurer of a properly executed proof of loss;
  - (a) Failing to notify such claimant or the claimant’s authorized representative, within twenty-one days after receipt of such proof of loss, that the insurer needs more time to determine whether the claim should be accepted or rejected;
  - (b) Failing to send a letter to such claimant or, the claimant’s authorized representative, stating the need for further time to investigate the claim, if such claim remains unsettled ninety days from the date of the initial letter setting forth the need for further time to investigate;
  - (c) Failing to send to such claimant or authorized representative every ninety days after the first ninety-day claim investigation period, a letter setting forth the reasons additional time is needed for investigation, unless the delay is caused by factors beyond the insurer’s control;
- (13) Failing to advise such claimant or claimant’s authorized representative, of the amount offered, if such claim is accepted in whole or in part;
- (14) Refusing payments of claims solely on the basis of the insured’s request to do so without making an independent evaluation of the insured’s liability based upon all available information;
- (15) Failing to adopt and implement reasonable standards for the proper handling of written communications, primarily expressing grievances, received by the insurer from insureds or claimants;
- (16) Failing to pay any amount finally agreed upon in settlement of all or part of any claim or authorized repairs to be made upon final agreement not later than five days from the receipt of such agreement by the insurer at the place from which the payment or authorization is to be made or from the date of the performance by the claimant of any condition set by such agreement, whichever is later.
- (17) For purposes of this rule, the following definitions shall apply;
  - (a) “Investigation” shall mean all activities of the company related directly or indirectly to the determining of liabilities under the coverages afforded by the policy. This shall include, but not be limited to, a bona fide effort to contact all insureds and claimants within a reasonable period after notification of loss. Evidence of a bona fide effort must be maintained in the file. The investigation shall be deemed concluded upon the company’s affirmation or denial of liability.
  - (b) “Notice of Claim” as applied to an insurer shall include notification given to an agent of an insurer.
  - (c) “Settlement of claims” shall mean all activities of the company related directly or indirectly to the determination of the extent of damages due under coverages afforded by the policy. This shall include, but not be limited to, the requiring or preparing of repair estimates.
  - (d) “Days” means calendar days. However, when the last day of a time limit stated in this rule falls on a Saturday, Sunday or holiday, the time limit is extended to the next immediate following day that is not a Saturday, Sunday or holiday.
- (D) Severability
  
  If any paragraph, term, or provision of this rule be adjudged invalid for any reason, such judgment shall not affect, impair, or invalidate any other paragraph, term, or provision of this rule, but the remaining paragraphs, terms, and provisions shall be in and continue in full force and effect.

Ohio Admin. Code 3901-1-07

Verify statute or Download PDF

If verify link fails, Google:
casetext.com, the citation.

With your support, more comments to come.

Section 3901-1-54 - Unfair property/casualty claims settlement practices

(A) Purpose

The purpose of this rule is to set forth uniform minimum standards for the investigation and disposition of property and casualty claims arising under insurance contracts or certificates issued to residents of Ohio. It is not intended to cover claims involving workers’ compensation, or fidelity, suretyship, and boiler and machinery insurance. The provisions of this rule are intended to define procedures and practices which constitute unfair claims practices. Nothing in this rule shall be construed to create or imply a private cause of action for violation of this rule.
(B) Authority

This rule is promulgated pursuant to the authority vested in the superintendent under sections 3901.041 and 3901.19 to 3901.26 of the Revised Code.
(C) Definitions

As used in this rule:
- (1) “Agent” means any individual, corporation, association, partnership or other legal entity authorized to represent an insurer with respect to a claim.
- (2) “Claim file” means any retrievable electronic file, paper file, combination of both, or any other media.
- (3) “Claimant” means a first party claimant, a third party claimant.
- (4) “Contract” means any insurance policy or document containing the terms of the agreement wherein one party, the insurer, assumes certain obligations including financial obligations that arise as a result of a loss sustained by another party, the insured, or to any other party that has rights under the agreement.
- (5) “Days” means calendar days. However, when the last day of a time limit stated in this rule falls on a Saturday, Sunday, or holiday, the time limit is extended to the next immediate following day that is not a Saturday, Sunday, or holiday.
- (6) “Department” means the Ohio department of insurance.
- (7) “Documentation” includes, but is not limited to, all communications, transactions, notes, work papers, claim forms, bills and explanation of benefits forms pertaining to the claim.
- (8) “First party claimant” means any individual, corporation, association, partnership or other legal entity asserting a right to payment under an insurance policy or insurance contract arising out of the occurrence of the contingency or loss covered by the policy or contract.
- (9) “Insurer” shall be defined as set forth in division (F) of section 3901.32 of the Revised Code.
- (10) “Investigation” means all activities of an insurer directly or indirectly related to the determination of liability under an insurance contract which is in effect or alleged to be in effect.
- (11) “Like kind and quality part” means a salvage motor vehicle part equal to or better than the replaced part that is acquired from a licensed salvage motor dealer.
- (12) “Notification of claim” means any notification, under the terms of an insurance contract, to an insurer or its agent, by a claimant, which reasonably apprises the insurer of the facts pertinent to a claim.
- (13) “Person” shall be defined as set forth in section 3901.19 of the Revised Code.
- (14) “Practice” means a type of activity or conduct engaged in by an insurer with such frequency as to constitute a customary procedure or policy routinely followed in the settlement of insurance claims. A single act is not a business practice. However, an act that is malicious, deliberate, conscious and knowing may be the basis for corrective action ordered only by the superintendent without a showing that the conduct is a practice.
- (15) “Superintendent” means the superintendent of insurance.
- (16) “Third party claimant” means any individual, corporation, association, partnership or other legal entity asserting a claim against any other individual, corporation, association, partnership or legal entity.
- (17) “Proof of loss” means a document from the claimant that provides sufficient information from which the insurer can determine the existence and the amount of the claim.
(D) File and record documentation

An insurer’s claim files are subject to examination by the superintendent of insurance or by the superintendent’s duly appointed designees. To aid in such examination:
- (1) An insurer shall maintain claim data that is accessible and retrievable for examination. Such data shall include number, line of coverage, date of loss and date of payment or date of denial or date when claim is closed without payment. The data for closed claims shall be kept for no less than three years or until the completion of the next financial examination conducted by the state of domicile, whichever is greater. Data for claims where the claims payment is less than one thousand dollars, or for towing, labor, glass or rental reimbursement may be kept in summary form.
- (2) An insurer must be able to reconstruct its activities in regard to any claim, by documentation appropriate for the type and size of the claim. If the claim is closed, the time period for retention is set forth in paragraph (D)(1) of this rule.
- (3) If an insurer does not maintain hard copy files, claim files shall be accessible and be capable of duplication to hard copy.
(E) Misrepresentation of policy provisions
- (1) An insurer shall fully disclose to first party claimants all pertinent benefits, coverages or other provisions of an insurance contract under which a claim is presented.
- (2) No agent shall willfully conceal from first party claimants benefits, coverages or other provisions of any insurance contract when such benefits, coverages or other provisions are pertinent to a claim.
- (3) No insurer shall deny a claim based on the first party claimant’s failure to make available for inspection the property which is the subject of the claim unless there is documentation of breach of the policy provisions in the claim file.
- (4) No insurer shall deny a claim based upon the failure of a first party claimant to give written notice of loss within a specified time limit unless the notice is required by a policy condition, or a first party claimant’s failure to give written notice after being requested to do so by the insurer is so unreasonable as to constitute a breach of the claimant’s duty to cooperate with the insurer.
- (5) No insurer shall indicate to a first party claimant on a payment draft, check or in any accompanying letter that the payment is final or a release of any claim unless the policy limit has been paid or the first party claimant and the insurer have agreed to a compromise settlement regarding coverage and the amount payable under the insurance contract.
- (6) No insurer shall issue checks or drafts in partial settlement of a loss or claim under a specific coverage that contains language purporting to release the insurer or its insured from total liability.
(F) Response to acknowledge receipt of pertinent communications
- (1) Notification of a claim given to an agent of an insurer shall be notification to the insurer.
- (2) An insurer shall acknowledge the receipt of a claim within fifteen days of receiving such notification. An insurer may satisfy this requirement by making payment within this fifteen day period. An insurer may also satisfy this requirement by providing necessary claim forms and complete instructions to the claimant within this fifteen day period.
- (3) An insurer shall respond within fifteen days to any communication from a claimant, when that communication suggests a response is appropriate. In the event that a complaint has been filed by a claimant in any court, an insurer is not obligated to respond within this time period and any communication between the claimant and the insurer will be subject to the appropriate rule of procedure for the court in which the lawsuit was filed.
- (4) An insurer shall, within twenty-one days of receipt of an inquiry from the department regarding a claim, furnish the department with a reasonable response to the inquiry.
(G) General standards for settlement of claims
- (1) An insurer shall within twenty-one days of the receipt of properly executed proof(s) of loss decide whether to accept or deny such claim(s). If more time is needed to investigate the claim than the twenty-one days allow, the insurer shall notify the claimant within the twenty-one day period, and provide an explanation of the need for more time. If an extension of time is needed, the insurer has a continuing obligation to notify the claimant in writing, at least every forty-five days, of the status of the investigation and the continued time for the investigation.
  
  If the form and execution of a proof of loss is material to an insurer, the insurer shall immediately provide the claimant with the specific documents and specific instructions so the claimant can submit the claim. An insurer shall not otherwise deny a claim solely on the basis the proof of loss is not on the insurer’s usual form.
  
  If an insurer reasonably believes, based upon information obtained and documented within the claim file, that a claimant has fraudulently caused or contributed to the loss as represented by a properly executed and documented proof of loss, such information shall be presented to the fraud division of the department within sixty days of receipt of the proof of loss. Any person making such report shall be afforded such immunity and the information submitted will be confidential as provided by sections 3901.44 and 3999.31 of the Revised Code.
- (2) No insurer shall deny a claim on the grounds of a specific policy provision, condition or exclusion unless reference to such provision, condition, or exclusion is included in the denial. The claim file of the insurer shall contain documentation of the denial in accordance with paragraph (D) of this rule.
- (3) Except as otherwise provided by policy provisions, an insurer shall settle first party claims upon request by the insured with no consideration given to whether the responsibility for payment should be assumed by others.
- (4) No insurer shall require an insured to submit to a polygraph examination unless authorized under the applicable insurance contract.
- (5) Notice shall be given to claimants at least sixty days before the expiration of any statute of limitation or contractual limit, where the insurer has not been advised that the claimant is represented by legal counsel.
- (6) An insurer shall tender payment to a first party claimant no later than ten days after acceptance of a claim if the amount of the claim is determined and is not in dispute, unless the settlement involves a structured settlement, action by a probate court, or other extraordinary circumstances as documented in the claim file.
- (7) If a claim involves a non-negligent party’s property loss and multiple liability insurers, the multiple liability insurers shall adjust the property loss within a reasonable time and pay the non-negligent party’s loss in equal shares. After payment, the multiple liability insurers may then pursue available remedies to resolve the question of responsibility for the non-negligent party’s loss.
- (8) If a claim involves multiple coverages under any policy, no insurer shall withhold payment under any such coverage when the payment is known, the payment is not in dispute, and the payment would extinguish the insurer’s liability under that coverage. No insurer shall withhold such payment for the purpose of forcing settlement on all other coverage to effect a single payment.
- (9) An insurer must document the application of comparative negligence to any claim settlement. Such information shall be fully disclosed to the claimant upon the claimant’s written request. An insurer shall not use pattern settlements as set forth in division (P) of section 3901.21 of the Revised Code.
- (10) An insurer shall not use settlement practices that result in compelling first party claimants to litigate by offering substantially less than the amounts claimed compared to the amount ultimately recovered in actions brought by such claimants.
(H) Standards for prompt, fair and equitable settlements of automobile insurance claims
- (1) When partial losses will be settled on the basis of a written estimate prepared by or for an insurer, the insurer shall supply the claimant a copy of the estimate upon which the proposed settlement is based. If the claimant subsequently claims that necessary repairs will exceed the written estimate, the insurer shall pay the difference between the written estimate and a higher estimate obtained by the claimant or promptly provide the claimant with the name of at least one repair shop that will make the repairs for the amount of the written estimate. If the insurer provides the name of only one repair shop, it shall ensure that the repairs are performed in a workmanlike manner. The insurer shall maintain documentation of all communications with the claimant pursuant to this paragraph.
- (2) If an insurer reduces a claim amount because of betterment, depreciation or comparative negligence, it shall maintain all information pertaining to the reduction in the claim file. Such deductions shall be itemized and specified on the written estimate as to dollar amount and shall be appropriate for the amount of deductions.
- (3) An insurer may reduce a claim amount because of betterment deductions only if the deductions reflect a measurable decrease in market value due to the poorer condition of, or prior damage to, the vehicle; or reflect the general overall condition of the vehicle, considering its age, for the wear and tear or rust, and/ or missing parts, limited to no more of a deduction than the replacement costs of part or parts.
- (4) When partial losses will be settled on the basis of a written estimate prepared by or for an insurer, the estimate must clearly indicate the use of the parts in compliance with section 1345.81 of the Revised Code. When like kind and quality parts are expected to be used in the repair, the estimate shall clearly indicate the location of the licensed salvage dealer where the like kind and quality parts are to be obtained.
- (5) An insurer which elects to repair and designates a specific repair shop for automobile repairs shall cause the damaged automobile to be restored to its condition prior to the loss. The insurer shall assess no additional cost against the claimant other than as stated in the policy, and the repairs should be effected within a reasonable period of time.
- (6) In settlement of claimants’ automobile total losses on the basis of actual cash value or replacement of the automobile with another vehicle of like kind and quality, an insurer which elects to offer a replacement automobile shall:
  - (a) Provide an automobile by the same manufacturer, of the same or newer year, of similar body style, with similar options and mileage as the claimant’s vehicle and in as good or better overall condition than the first party automobile prior to loss;
  - (b) Ensure that the automobile is available for inspection within a reasonable distance of the claimant’s residence;
  - (c) Pay all applicable taxes, license fees, and other fees incident to transfer of evidence of ownership of the automobile at no cost to claimant other than any deductible provided in the policy; and
  - (d) Document the offer of the replacement automobile and any rejection of the offer in the claim file.
- (7) In settlement of claimants’ automobile total losses on the basis of actual cash value or replacement of the automobile with another of like kind and quality, an insurer which elects to offer a cash settlement to claimant shall base the offer upon the actual cost to purchase a comparable automobile less any applicable deductible amount contained in the policy, and/or deduction for betterment as contained in paragraph (H)(2) of this rule. The settlement value may be derived from:
  - (a) The average cost of two or more comparable automobiles in the local market area if comparable automobiles are or were available to consumers within the last ninety days; or
  - (b) The average cost of two or more comparable automobiles in areas proximate to the local market area, including the closest in-state or out-of-state major metropolitan areas, that are or were available to consumers within the last ninety days if comparable automobiles are not available pursuant to paragraph (H)(7)(a) of this rule; or
  - (c) The average of two or more quotations obtained by the insurer from two or more licensed dealers located within the local market area if comparable automobiles are not available pursuant to paragraphs (H)(7)(a) and (H) (7)(b) of this rule; or
  - (d) The cost as determined from a generally recognized used motor vehicle industry source such as:
    - (i) An electronic database if the pertinent portions of the valuation documents generated by the database are provided by the insurer to the claimant upon request; or
    - (ii) A guidebook that is generally available to the general public if the insurer identifies the guidebook used as the basis for the cost to the claimant upon request, and to which appropriate adjustments for condition, mileage and major options are made and documented in the claim file.
  - (e) Any method or source chosen as specified in paragraph (H)(7)(d) of this rule shall be used consistently over a period of time by the insurer.
  - (f) If within thirty days of receipt by the claimant of a cash settlement for the total loss of an automobile, the claimant purchases a replacement automobile, the insurer shall reimburse the claimant for the applicable sales taxes incurred on account of the claimant’s purchase of the automobile, but not to exceed the amount that would have been payable by the claimant for sales taxes on the purchase of an automobile with a market value equal to the amount of the cash settlement. If the claimant purchases an automobile with a market value less than the amount of the cash settlement, the insurer shall reimburse only the actual amount of the applicable sales taxes on the purchased automobile. If the claimant cannot substantiate such purchase and the payment of such sales taxes by submission to the insurer of appropriate documentation within thirty-three days after receipt of the cash settlement, the insurer shall not be required to reimburse the claimant for such sales taxes. In lieu of reimbursement, the insurer may pay directly the applicable sales taxes to the claimant at the time of the cash settlement.
    
    An insurer that settles a total loss on a cash settlement basis must maintain in the claim file the documentation used to determine the loss. Such information shall be provided to the first party claimant upon request. An insurer shall notify the first party claimant of any rights to renegotiate the settlement if a comparable vehicle is not available for purchase within thirty-five days of receipt of the settlement.
    
    When an insurer elects to offer a replacement vehicle available to the claimant, the insurer shall provide all the details where such vehicle is available including the vehicle identification number.
  - (g) An insurer that settles a total loss claim shall provide written notice to the claimant of the right to reimbursement of applicable sales tax as specified in paragraph (H)(7)(f) of this rule. The notice shall be issued to the claimant simultaneously with the conveyance of the settlement check to the claimant. If an insurer elects to pay the applicable sales taxes directly to the claimant at the time of the cash settlement in lieu of reimbursement as provided in paragraph (H)(7)(f) of this rule, the insurer is not required to provide written notice of the claimant’s right to sales tax reimbursement.
- (8) An insurer shall not require a claimant to travel an unreasonable distance to inspect a replacement automobile, to obtain a repair estimate, or to have the automobile repaired at a specific repair shop.
- (9) An insurer shall provide notice to a claimant prior to termination of payment for automobile storage charges. The insurer shall document all actions taken pursuant to this paragraph in accordance with paragraph (D) of this rule.
- (10) An insurer shall include the first party claimant’s deductible, if any, in subrogation demands. The insurer shall share any subrogation recovery received on a proportionate basis with the first party claimant, unless the first party claimant’s deductible has been paid in advance or recovered. The insurer shall not deduct expenses from this amount except that an outside attorney or collection agency retained to collect such recovery may be paid a pro rata share of his expenses for collecting this amount.
(J) Applicability of rule 3901-1-07 of the Administrative Code

If any provisions of any section of this rule conflicts with any of the provisions contained in rule 3901-1-07 of the Administrative Code, the provisions of this rule will apply.
(K) Imposition of fine

Pursuant to section 3901.22 of the Revised Code and a consent agreement with the insurer, the superintendent may recover the cost of an investigation under this rule and/or a penalty from the insurer.
(L) Severability

If any paragraph, term or provision of this rule is adjudged invalid for any reason, the judgment shall not affect, impair or invalidate any other paragraph, term or provision of this rule, but the remaining paragraphs, terms and provisions shall be and continue in full force and effect.

Ohio Admin. Code 3901-1-54

Verify statute or Download PDF

If verify link fails, Google:
casetext.com, the citation.

“Jerry, looks to me like
the legislators of some states
are pimping us out
to automobile insurance companies.”

“Jerry, I skimmed through the laws
of half a dozen or so different states.

“Looks to me like the legislators
of some states aren’t just making it easy
for automobile insurance companies
to have their way with us.

“Looks to me like they’re pimping us out
to the automobile insurance companies.”

If that’s the conclusion that you come to,
my friend, I cannot necessarily say
that I would disagree with you.

“Our state legislators are pimping out
to automobile insurance companies
the very voters
who voted those legislators
into office?

“How can that be?”

In a word, money!

Every year, in the USA,
automobile insurance companies
collect hundreds of billions of dollars
in automobile insurance premiums.

Money of that magnitude
translates into political power.

Automobile insurance companies
have many ways
in which they can reward
whoever helps them maximize their profits.

Then too, there’s a revolving door
between insurance companies
and state regulatory departments.

Some employees of insurance companies
go on to become
state commissioners of insurance.

Some state commissioners of insurance
go on to become highly-paid employees
of insurance companies
or go on to become
fabulously compensated lobbyists
for insurance companies.

One way for a man or woman
to maximize his or her career income
in the insurance industry
is to help insurance companies
maximize their profits
before he or she becomes
a state commissioner of insurance
and to help insurance companies
maximize their profits
after he or she becomes
a state commissioner of insurance.

“Is there anything we can do?”

In principle, yes.

The Affordable Care Act
limits the percentage
of health-insurance premium dollars
that health insurance companies
can keep for themselves
and their shareholders.

But I have yet to run across a law
that limits the percentage
of automobile insurance premium dollars
that automobile insurance companies
can keep for themselves
and their shareholders.

I’d like to see
our state legislators enact such laws
or our federal legislators enact such a law.

“Until that happens,
we’re goinng to keep getting pimped out
to the automobile insurance companies?”

You read your state’s laws.

You’ve witnessed up close the conduct
of the automobile insurance company
that you’re dealing with
under your state’s laws.

I’ll leave it to you
to reach your own conclusions.

I’m doing what I can to teach folks
how to fight back against rapacious
automobile insurance companies.

From my questions
about your state’s laws,
you learned that the legislators
of some states
give total-loss claimants
rights that legislators
of other states take away.

I would like to see
the legislators of states
that have taken away rights
restore those rights.

I would like to see state legislators
give total-loss claimants
rights that would make it easy
for total-loss claimants
to get fair valuations
of their total-loss vehicles.

I’d like to build an organization
that can try to persuade our legislators
to change some of the laws
that make it so easy
for automobile insurance companies
to have their way with you.

If you would like to help me,
then, at the top right of your screen,

click this image:

Send me a few dollars.

Looks_to_me_like_legisators_of_some_states_are_pimping_us_outChapter

Get your draft document into shape
for an attorney to review it.

When I imagine you meeting with an attorney,
I see your attorney sitting at a computer.

The attorney has your draft letter
up on a computer screen
that you can see.

If someone other than you
did your word processing,
he or she is with you.

The two or three of you also have printouts
of your draft letter and other documents.

The attorney reads through your draft letter.

The attorney comments on
what is good in your draft letter
and on what needs to be fixed,
improved, deleted, or changed.

She or he asks you questions.

To answer some of the questions,
you pull out the document or the page
wherein the answer to that question
is to be found.

At the computer keyboard,
the attorney edits, fixes,
and strengthens your draft letter.

If you will imagine your meeting
with the attorney,
then doing so may help you
shape up and organize your draft letter
and other documents for that meeting.

When you are deciding
what to delete and what to keep,
imagine the workflow
that you want to accomplish
in the hour or so that you will spend
with the attorney.

Imagine how your conversation
with the attorney is likely to flow.

Shape up your draft letter accordingly.

Doing so may mean little more
than putting hard page breaks in places
that will organize the document
into meaningful sections.

Preserve the section of your draft document
where you used
“Find and replace” ➞ “Replace all”
to replace the specifics
of my fictitious total-loss claim
with the specifics of your total-loss claim.

This list of specifics
will give your attorney
the specifics of your total-loss claim
all in one place.

If some of what is in your draft letter
will have no role in the finished document
or in your conversation with the attorney,
then, probably, you can safely delete it.

Keep in mind that you’re not trying to create
a perfectly polished, legally pristine letter.

You’re putting together information
and supporting documents
that an attorney can vet, edit, and shape
into a powerful package.

You’re preparing yourself
for a fast-paced, efficient,
and productive conversation
with an attorney
about how to craft a letter
that will get you a fair valuation
for your total-loss vehicle.

When you’ve developed
your draft letter
as far as you wish to,
find an attorney
who knows how to deal
with automobile insurance companies
on total-loss property damage claims.

Get_your_draft_document_into_shapeChapter

Find an attorney
who is knowledgeable
about automobile insurance
total-loss property damage claims.

See if an attorney in your county
advertises his or her expertise here
on wasyourcartotaledorstolen.com.

Attorneys have many different specializations.

To help you get a fair valuation
of your total-loss vehicle,
you likely will want to find an attorney
who is knowledgeable
about automobile insurance
total-loss property damage claims.

If an attorney in your county
or in a nearby county
advertises his or her expertise
on wasyourcartotaledorstolen.com,
then he or she is likely knowledgeable
about automobile insurance
total-loss property damage claims.

He or she is likely
primed and prepared
to have with you
the kind of conversation
that I’ve prepared you for.

He or she may even
have already created a model letter
that picks up where mine leaves off.

If a local attorney
has already created
a model letter that picks up
where mine leaves off,
then his or her letter
will already be tailored
to the laws of your state.

To see if an attorney in your county
advertises his or services
here at wasyourcartotaledorstolen.com,
at the top of your screen,
click the image

of four attorneys standing together.

Then click your county.

Find_a_knowledgeable_attorneyChapter

Make an appointment with the attorney.

Email your draft letter
and supporting documents
to the attorney.

However you find an attorney
who is well qualified
to help you get a fair valuation
of your total-loss vehicle,
make an appointment
for an hour of his or her time.

If you want the attorney
to have your draft letter
up on a computer screen
during your meeting,
then email your draft letter
and its supporting documents
to the attorney
before your meeting.

If you are going to email your draft letter
and its supporting documents
to the attorney, then you need to write
an email for that purpose.

At the end of your draft document,
I have included as an example
the email that I would write
for that purpose.

If you wish to do so,
you may use my example email
as the starting point for your email.

If, earlier, you used
“Find and replace” ➞ “Replace all”
to change the specifics
of my fictitious total-loss claim
to the specifics
of your total-loss claim,
then those changes
will have rippled through
to my example email.

Make_an_appointment_with_an_attorneyChapter

Meet with the attorney.

If you have a co-pilot,
take him or her with you.

Ask your attorney to:

Review your draft letter
against the CCC market valuation report
or other market valuation report
that you received
from the automobile insurance company;
Review your draft letter against
the J.D. Power Buy from Dealer price
for your total-loss vehicle;
Review your draft letter against
your state’s laws; and
If your total-loss claim
is a first-party claim,
review your draft letter against
your automobile insurance policy.

Ask your attorney, to edit, tweak,
and strengthen your draft letter
as he or she thinks best.

Or, if your attorney wants you
to make the changes to your draft letter,
take good notes of what
your attorney tells you to change.

If you have time enough to do so,
ask the attorney what steps
he or she thinks you should take
if the automobile insurance company
does not agree to the valuation amount
that you propose.

If you don’t accomplish everything
that you wish to in one hour,
make a follow-up appointment.

Do not let
the automobile insurance company
rush you into a settlement
that is not fair to you.

Meet_with_the_attorneyChapter

Email your letter
and its supporting documents
to the automobile insurance company.

If your attorney asked you and your co-pilot
to make the changes to your draft letter,
then make those changes.

Pretty your letter up.

When you’re satisfied with
how your letter looks and reads,
email your letter
and its supporting documents
to the automobile insurance company
that you’re dealing with.

Email_your_letter_and_documents_to_the_automobile_insurance_companyChapter

If your letter and supporting documents
get you a fair valuation
of your total-loss vehicle,
then great!

Congratulations!

High fives!

You rule!

If you’ve made in this far
into wasyourcartotaledorstolen.com,
then you’ve done a lot of work!

You and perhaps a co-pilot
have spent a lot of hours
getting savvy to ways
in which automobile insurance companies
try to cheat people
out of fair settlemets
of their total-loss claims.

If you have succeeded
in getting a fair valuation
of your total-loss vehilce,
then, as we say down South,
I’m proud fer ya!

Your hard work has paid off!

High fives!

God bless you!

If you would like to share
your success story
with other total-loss claimants
in Ohio, email me your story.

I’ll create a web page
here in the Ohio arena
of wasyourcartotaledorstolen.com
where you and other folks
who live in Ohio
can share your stories
with one another.

(I may edit your story a little bit
to keep you and me
from getting into trouble.)

If you would like to help me
help others achieve
what you have achieved,
then, at the top right of your screen,

click this image:

Send me a few dollars.

Congratulations!

And thank you!

If_your_letter_gets_you_a_fair_valuation_high_fivesChapter

If your letter did not get you
a fair valuation
of your total-loss vehicle, then,
if you have a right of recourse,
exercise your right of recourse.

By now, you should know
whether or not your state laws
give you a right of recourse.

You should know how many days
after the automobile insurance company
mails you the settlement check
you have to exercise
your right of recourse
before it expires.

To learn how I would go about
exercising my right of recourse,
at the top of your screen,
click the photo
of the young woman
who is determined

to exercise her rights:

If_your_letter_did_not_get_you_a_fair_valuation_exercise_your_right_of_recourseChapter

If you do not have a right of recourse
or if exercising your right of recourse
did not get you a fair valuation
of your total-loss vehicle,
then you may want to initiate
a small-claims lawsuit
or even a large-claims lawsuit.

To get a fair valuation
of my total-loss vehicle,
I sued the at-fault driver
in a small-claims lawsuit
for the amount of money
that her automobile insurance company,
Travelers, cheated me out of.

I got an additional $5,920 from Travelers.

If your total-loss claim
is a third-party claim
and the automobile insurance company
refused to negotiate
a fair valuation of your total-loss vehicle,
then you can sue the at-fault driver
for the amount of money
that his or her
automobile insurance company
cheated you out of.

If your total-loss claim
is a first-party claim,
then things are much more complicated.

Your automobile insurance policy
may contain an appraisal clause,
may contain an arbitration clause,
or may contain both.

Your state’s legislators
may have taken away rights
that you would otherwise have
under the law of contracts.

Hence, if your total-loss claim
is a first-party claim,
then I suggest that you
ask an attorney in your county
whether or not it makes sense
for you to invoke the appraisal clause
in your automobile insurance policy,
invoke the arbitration clause
in your automobile insurance policy,
or initiate a lawsuit
against your automobile insurance company.

To learn how,
in a third-party total-loss claim,
I would initiate a small-claims lawsuit
and perhaps a large-claims lawsuit,
at the top of your screen,
click the photo of the total-loss claimant
and the attorney
for the automobile insurance company
arguing their case

in front of a judge.

If_your_right_of_recourse_does_not_get_you_a_fair_valuation_you_may_want_to_sueChapter

Nota bene

Jerry Marlow is not an attorney. Neither information nor opinions published on this site constitute legal advice. This site is not a lawyer referral service. No attorney‑client or confidential relationship is or will be formed by use of this site. Any attorney listings on this site are paid attorney advertising. In some states, the information on this website may be considered a lawyer referral service.

Terms of use

Jerry Marlow grants human users of wasyourcartotaledorstolen.com permission to use the copyrighted materials on wasyourcartotaledorstolen.com for their personal use free of charge.

The fee to use copyrighted materials on wasyourcartotaledorstolen.com to train artificial intelligence software (AI) is $4 million.

Reproduction of copyrighted materials on wasyourcartotaledorstolen.com for commercial use without the written permission of Jerry Marlow is strictly prohibited.

Jerry Marlow does not grant users permission to reproduce on other websites any of the copyrighted material published on wasyourcartotaledorstolen.com.

Jerry Marlow does not grant users permission to reproduce via audio, video, or any other audiovisual medium any of the copyrighted material published on wasyourcartotaledorstolen.com.

If you wish to use any of the copyrighted material published on wasyourcartotaledorstolen.com in any way for which permission is not explicitly granted, contact Jerry Marlow at jerrymarlow@jerrymarlow.com.

To make your draft letter to the automobile insurance company more consistent with the laws of Ohio, vet and edit your draft letter against the laws of Ohio that I copied and pasted below.

If your total-loss claim is a first-party claim, then, to adapt my first-party model letters to the laws of your state, you need to know or need to find or need to ask an attorney the answers to these sets of questions.

To adapt my polite first‑party model letter to the laws of your state, you need to know or need to find or need to ask an attorney the answer to this question.

To adapt my muscular first‑party model letter to the laws of your state, you need to know or need to find or need to ask an attorney the answers to these questions.

Keep an eye out for paragraphs of the law that may prove useful to you if your automobile insurance company does not agree to the valuation amount for your total-loss vehicle that you propose in your letter.

The legislators of a few states give rights to first-party claimants that legislators of other states take away from first-party claimants.

Are your state legislators right givers?

Or right takers?

If your total-loss claim is a third-party claim, then, to adapt my third-party model letters to the laws of your state, you need to know or need to find or need to ask an attorney the answers to these sets of questions.

To adapt my polite third‑party model letter to the laws of your state, you need to know or need to find or need to ask an attorney the answer to this question.

To adapt my muscular third‑party model letter to the laws of your state, you need to know or need to find or need to ask an attorney the answers to these questions.

Keep an eye out for paragraphs of the law that may prove useful to you if the automobile insurance company does not agree to the valuation amount that you propose in your letter for your total-loss vehicle.

Questions about the laws of your state to which the answers may prove useful to you if you end up suing the at-fault driver and his or her automobile insurance company for the money that the at-fault driver’s automobile insurance company cheated you out of.

If it’s more work than you wish to do to vet and edit your draft letter against Ohio’s laws, then let the attorney with whom you meet vet and edit the letter for you.

Help me create model letters tailored to the laws of every state.

Send me a few dollars.

The laws of Ohio that regulate how automobile insurance companies that do business in Ohio are required to value total-loss vehicles and settle total-loss claims.

My Comments

Ohio Regulations

Ohio Administrative Code

Title 3901 - Department of Insurance

Chapter 3901-1 - General Provisions

“Jerry, looks to me like the legislators of some states are pimping us out to automobile insurance companies.”

Get your draft document into shape for an attorney to review it.

Find an attorney who is knowledgeable about automobile insurance total-loss property damage claims.

See if an attorney in your county advertises his or her expertise here on wasyourcartotaledorstolen.com.

Make an appointment with the attorney.

Email your draft letter and supporting documents to the attorney.

Meet with the attorney.

Email your letter and its supporting documents to the automobile insurance company.

If your letter and supporting documents get you a fair valuation of your total-loss vehicle, then great!

Congratulations!

High fives!

You rule!

If your letter did not get you a fair valuation of your total-loss vehicle, then, if you have a right of recourse, exercise your right of recourse.

If you do not have a right of recourse or if exercising your right of recourse did not get you a fair valuation of your total-loss vehicle, then you may want to initiate a small-claims lawsuit or even a large-claims lawsuit.

To make your draft letter
to the automobile insurance company
more consistent
with the laws of Ohio,
vet and edit your draft letter
against the laws of Ohio
that I copied and pasted below.

If your total-loss claim
is a first-party claim,
then, to adapt
my first-party model letters
to the laws of your state,
you need to know or need to find
or need to ask an attorney
the answers to these sets of questions.

To adapt
my polite first‑party model letter
to the laws of your state,
you need to know or need to find
or need to ask an attorney
the answer to this question.

To adapt
my muscular first‑party model letter
to the laws of your state,
you need to know or need to find
or need to ask an attorney
the answers to these questions.

Keep an eye out
for paragraphs of the law
that may prove useful to you
if your automobile insurance company
does not agree to the valuation amount
for your total-loss vehicle
that you propose in your letter.

The legislators of a few states
give rights to first-party claimants
that legislators of other states
take away from first-party claimants.

If your total-loss claim
is a third-party claim,
then, to adapt
my third-party model letters
to the laws of your state,
you need to know or need to find
or need to ask an attorney
the answers to these sets of questions.

To adapt
my polite third‑party model letter
to the laws of your state,
you need to know or need to find
or need to ask an attorney
the answer to this question.

To adapt
my muscular third‑party model letter
to the laws of your state,
you need to know or need to find
or need to ask an attorney
the answers to these questions.

Keep an eye out
for paragraphs of the law
that may prove useful to you
if the automobile insurance company
does not agree to the valuation amount
that you propose in your letter
for your total-loss vehicle.

Questions about the laws of your state
to which the answers
may prove useful to you
if you end up suing
the at-fault driver and his or her
automobile insurance company
for the money
that the at-fault driver’s
automobile insurance company
cheated you out of.

If it’s more work
than you wish to do
to vet and edit your draft letter
against Ohio’s laws,
then let the attorney
with whom you meet
vet and edit the letter for you.

Help me create model letters
tailored to the laws of every state.

The laws of Ohio that regulate
how automobile insurance companies
that do business in Ohio
are required
to value total-loss vehicles
and settle total-loss claims.

“Jerry, looks to me like
the legislators of some states
are pimping us out
to automobile insurance companies.”

Get your draft document into shape
for an attorney to review it.

Find an attorney
who is knowledgeable
about automobile insurance
total-loss property damage claims.

See if an attorney in your county
advertises his or her expertise here
on wasyourcartotaledorstolen.com.

Email your draft letter
and supporting documents
to the attorney.

Email your letter
and its supporting documents
to the automobile insurance company.

If your letter and supporting documents
get you a fair valuation
of your total-loss vehicle,
then great!

If your letter did not get you
a fair valuation
of your total-loss vehicle, then,
if you have a right of recourse,
exercise your right of recourse.

If you do not have a right of recourse
or if exercising your right of recourse
did not get you a fair valuation
of your total-loss vehicle,
then you may want to initiate
a small-claims lawsuit
or even a large-claims lawsuit.