§ 58-3-180. Motor vehicle repairs; selection by claimant. - North Carolina Statutes

§ 58‑3‑180.  Motorvehicle repairs; selection by claimant.

(a)        A policy coveringdamage to a motor vehicle shall allow the claimant to select the repair serviceor source for the repair of the damage.

(b)        The amountdetermined by the insurer to be payable under a policy covering damage to amotor vehicle shall be paid regardless of the repair service or source selectedby the claimant.

(b1)      No insurer orinsurer representative shall recommend the use of a particular motor vehiclerepair service without clearly informing the claimant that (i) the claimant isunder no obligation to use the recommended repair service, (ii) the claimantmay use the repair service of the claimant's choice, (iii) the amountdetermined by the insurer to be payable under the policy will be paidregardless of whether or not the claimant uses the recommended repair service,and (iv) that the insurer or insurer representative has, at the time therecommendations are made, a financial interest in the recommended motor vehiclerepair service. No insurer shall require that the insured or claimant must havea damaged vehicle repaired at an insurer‑owned motor vehicle repairservice.

(b2)      The provisions ofsubsection (b1) of this section shall be included in nonfleet private passengermotor vehicle insurance policy forms promulgated by the Bureau and approved bythe Commissioner.

(c)        Any person whoviolates this section is subject to the applicable provisions of G.S. 58‑2‑70and G.S. 58‑33‑46, provided that the maximum civil penalty that canbe assessed under G.S. 58‑2‑70(d) for a violation of this sectionis two thousand dollars ($2,000).

(d)        As used in thissection, "insurer representative" includes an insurance agent,limited representative, broker, adjuster, and appraiser. (1993, c. 525, s. 2; 2001‑203,s. 26; 2001‑451, s. 1; 2003‑395, s. 1.)