(b) When the insurance policy provides for the adjustment and settlement of first-party automobile total losses on the basis of actual cash value or replacement with another of like kind and quality, one (1) of the following methods must apply:

1. (1)

   1. (A) The insurer may elect to offer a replacement automobile which is a specific comparable automobile available to the insured.
   2. (B) All applicable taxes, license fees, and other fees incident to transfer of evidence of ownership of the automobile must be paid at no cost to the insured other than the policy deductible.
   3. (C) The offer and any rejection thereof must be documented in the claim file;

2. (2)

   1. (A) The insurer may elect a cash settlement based upon the actual cost, less any deductible provided in the policy, to purchase a comparable automobile, including all applicable taxes, license fees, and other fees actually incurred incident to transfer of evidence of ownership of a comparable automobile.
   2. (B) Such cost may be determined by:

(i) The cost of a comparable automobile in the local market area when a comparable automobile is available in the local market area; or

1. (ii) Use of one (1) of two (2) or more quotations obtained by the insurer from two (2) or more qualified dealers or appraisal services located within the local market area when a comparable automobile is not available in the local market area; or

2. (3)

   1. (A) When a first-party automobile total loss is settled on a basis which deviates from the methods described in subdivisions (b)(1) and (2) of this section, the deviation must be supported by documentation giving particulars of the automobile's condition.

   2. (B)

      1. (i) Any deductions from such cost, including deduction for salvage, must be measurable, discernible, itemized and specified as to dollar amount, and shall be appropriate in amount.
      2. (ii) The basis for such settlement shall be fully explained to the first-party claimant.
      3. (c) Where liability and damages are reasonably clear, insurers shall not recommend or require that third-party claimants make a claim under their own policies solely to avoid paying claims under such insurer's policy or contract.
      4. (d) Insurers shall not require a claimant to:

3. (1) Travel an unreasonable distance to:

   1. (A) Inspect a replacement automobile;
   2. (B) Obtain a repair estimate; or
   3. (C) Have the automobile repaired at a specific repair shop; or
4. (2) Have the automobile repaired at a specific repair shop as a condition of recovery.

(e)

1. (1) Insurers shall include the first-party claimant's deductible, if any, in subrogation demands.
2. (2) Subrogation recoveries shall be shared on a proportionate basis with the first-party claimant, unless the deductible amount has been otherwise recovered.
3. (3) No deduction for expenses can be made from the deductible recovery unless an outside attorney is retained to collect such recovery.
4. (4) The deduction may then be for only a pro rata share of the allocated loss adjustment expense.

(g)

1. (1) If an insurer prepares an estimate of the cost of automobile repairs, such estimate shall be in an amount for which it may be reasonably expected the damage can be satisfactorily repaired.
2. (2) The insurer shall give a copy of the estimate to the claimant and may furnish to the claimant the names of one (1) or more conveniently located repair shops.

(h)

1. (1) When the amount claimed is reduced because of betterment or depreciation, all information for such reduction shall be contained in the claim file.
2. (2) Such deductions shall be itemized and specified as to dollar amount and shall be appropriate for the amount of deductions.